Dow Jones Holds Gains While Tech Off Lows; Tesla Gets Upgrade; Largest Crypto Exchange In Troubled Waters

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The Dow Jones Industrial Average held the bulk of early gains, higher by 0.8% Monday afternoon. The Nasdaq rose off session lows but still traded 0.4% lower.


Dow bank leader Goldman Sachs (GS) and JPMorgan (JPM) rose. Health care giants Merck (MRK) and UnitedHealth (UNH) also gained. Big Tech stock IBM (IBM) rose as well.

The S&P 500 posted a small 0.4% gain, shedding some of earlier gains. Small-cap Russell 2000 rose by more than 1%.

First Republic (FRC) jumped in the S&P 500, while Wells Fargo (WFC) and Bank of America (BAC) also rose. In the Nasdaq, Tesla (TSLA) and Dexcom (DXCM) rallied, with bigger gains from Seagen (SGEN) and Fortinet (FTNT)

NYSE volume fell sharply while Nasdaq volume was almost unchanged vs. the same time on Friday.

Crude oil climbed more than 2% to trade at $70.65 per barrel. The yield on the benchmark 10-year Treasury note rose 14 basis points to 3.52%.

The largest crypto exchange Binance faces the risk of trading and registration bans after the Commodity Futures Trading Commission sued the exchange, alleging breaches of U.S. regulations, including those related to anti-money laundering.

Bitcoin (BTC) fell 3.6% and undercut $27,000. Coinbase (COIN) plummeted over 10% and has lost nearly 30% of its value in the last four sessions.

Bank Stocks Rise Outside Dow Jones

First Citizens Bank (FCNCA) will acquire Silicon Valley Bank. Shares of other troubled banks rose on the news, with First Republic (FRC) gaining more than 10%.

Tesla (TSLA) rose after a Citigroup upgrade. Tesla’s deliveries in the first quarter are expected to reach record highs. However, analysts also expect earnings to decline compared with 2022. Tesla stock has been building support at its 50-day line.

CEO Elon Musk’s Twitter suffered a leak of its source code online. Earlier, reports indicated that Musk had offered Twitter employees stock options that valued the social media giant at $20 billion. Musk bought Twitter at more than twice that price at $44 billion in October last year.

Facebook parent Meta Platforms (META) pared back in light volume after breaking out of a flat base with a buy point of 197.26. Shares are still in a buy zone. Palo Alto Networks (PANW) is in a consolidation with a buy point of 213.73. Both stocks are on the IBD Leaderboard.

Health care stocks in the IBD 50 rose. Catalyst Pharma (CPRX) and Novo Nordisk (NOV) were gainers. CPRX is clearing its 50-day line.

Novartis (NVS) rose over 8% in strong volume after a successful trial for breast cancer. The drug can reduce the risk of relapse in early stages of the disease.

Elsewhere, Salesforce (CRM) added to early gains. Activist investor Elliott Management said it would not propose its own directors to the Dow Jones software leader. Salesforce posted strong fourth-quarter results and raised its buyback program.

Economic Releases and Earnings Deck

The Conference Board’s Consumer Confidence Index is out Tuesday. The Labor Department will announce weekly jobless claims on Thursday while third-quarter GDP numbers are due from the Commerce Department. On Friday, the Bureau of Economic Analysis will release its U.S. Personal Income and Outlays (PCE) report, the Fed’s preferred gauge of inflation.

Earnings are due Tuesday for Lululemon Athletica (LULU) and Walgreens Boots Alliance (WBA). Lululemon fell slightly while Walgreens rose.

Please follow VRamakrishnan on Twitter for more news on the stock market today.


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