The Dow Jones industrial average rose as shares rose at the close on Monday. tesla (TSLA) fell on disappointing delivery data, while World Wrestling Entertainment (WWE) was mutilated amid merger news. dow component UnitedHealth (UNH) appeared as a co-member Microsoft (MSFT) delayed.
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A trio of promising stocks tested buy points despite challenging action. Leaderboard Actions royal gold (RGLD), Tractor Supply (TSCO) and oil marathon (MPC) all breakout attempts.
Treasury yields fell. The 10-year yield fell 8 basis points to 3.41%, while the two-year yield fell 9 basis points to 3.97%. The yield curve remains inverted.
Energy stocks got a boost after OPEC+ announced a surprise production cut. West Texas Intermediate crude rose more than 6% to more than $80 a barrel. It is now testing multi-month highs.
Nasdaq Falls and Small Cap Slips
The Nasdaq struggled the most of the major indices, falling 0.3% despite fighting its way out of the lows. atlasian (EQUIPMENT) skidded 4.2%.
The benchmark S&P 500 index fell back, gaining 0.4%. Energy stocks shined, with halliburton (hal) and i know phillips (POLICE) among the top performers.
Sectors of the S&P 500 ended the day mixed, with a slight bullish bias. Not surprisingly, energy and health posted the biggest gains. Consumer discretionary and real estate were the worst groups.
Small-caps rallied early, but the Russell 2000 still closed nominally negative. Growth stocks reversed higher, with the Innovator IBD 50 ETF (ffty) increasing by 0.7%.
Dow Jones today: UNH shines, Microsoft shares lag
The Dow Jones fared better than the major indices. He gained over 300 points by ending the session up 1%.
UnitedHealth (UNH) was the best performer of the index, up 4.6%, driven by Friday announcement of new Medicare rules.
Chevron (CLC) also impressed, rallying 4.2% and breaking above its 200 and 50-day moving averages, MarketSmith’s analysis shows.
Sales force (CRM) was the worst laggard in the Dow Jones, falling 1.6%. Microsoft also lagged behind, but its 0.4% loss was well below the day’s lows.
Tesla shares plunge on deliveries
Tesla has staged a big rally so far in 2023. But it came under heavy pressure Monday, battered by reports of total first-quarter 2023 deliveries of 422,875 and production of 440,808. This was well below analyst estimates for deliveries of around 432,000 vehicles, according to FactSet data.
TSLA shares closed near daily lows as they fell 6.1%. It lost more ground at its 200-day moving average, but remains clear of its 50-day line.
Tesla shares were close to a test of the 21-day exponential moving average.
TSLA is still up around 80% so far in 2023, but the stock is still well below all-time highs.
The brainchild of CEO Elon Musk has a solid IBD Composite Rating of 89 out of 99. Earnings have become a key strength as the stock has a perfect EPS rating of 99.
WWE Stock Closed Amid Merger Talks
World Wrestling Entertainment shares tumbled amid merger news on Monday.
However, he managed to bounce back from the ropes as he closed down 2.1%, well above his lows, amid news that he will merge with mixed martial arts giant UFC into a new company that is listed on a stock exchange controlled by Endeavor. WWE is worth $9.3 billion while the UFC is priced at $12.1 billion.
On the open market, World Wrestling Entertainment has a market capitalization of $7 billionaccording to IBD data.
Entertainment firm Endeavor will have a 51% stake, while WWE shareholders will have the remaining 49%.
Due to the structure of the deal, longtime WWE CEO Vince McMahon will continue to have a large stake.
However, it wasn’t just WWE stock that fell. Endeavor plunged 5.9%.
Outside Dow Jones: Leader Among Breakouts
Royal Gold attempted to top a handle cup entry of 131.99. It closed slightly below that level.
The miner acquires and manages the flow of precious metals and royalties and is a member of the prestigious IBD leaderboard list of main actions
Tractor Supply is in a buy zone after topping out a flat bottom entry of 239.76.
Overall performance is strong, with the stock having an IBD composite rating of 95 out of 99. The gains are powerful.
Marathon Petroleum is just below its entry after it tried to break out of a consolidation pattern with a buy point of 136.56.
MPC shares are in the top 6% of stocks in terms of price performance over the past 12 months.
Follow Michael Larkin on Twitter at @IBD_MLarkin for more analysis of growth stocks.
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