Dow Jones Futures: 10-Year Treasury Yield Tops 3%; 7 Best Stocks To Buy And Watch Now

Dow Jones futures dropped 190 points after Monday’s stock market gains. The 10-year Treasury yield jumped back above 3% Monday, closing at its highest level since May 9. Amid the ongoing stock market rally, Dow Jones leaders Chevron (CVX) and Merck (MRK) are among seven top stocks to buy and watch.

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Dow Jones Futures Today: Treasury Yields, Oil Prices

After Monday’s close, Dow Jones futures lost 0.55% vs. fair value, while S&P 500 futures moved down 0.6%. Nasdaq 100 futures declined 0.75% vs. fair value. Remember that trading in Dow Jones futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

The 10-year Treasury yield added to last week’s gains, jumping to 3.03% Monday. Meanwhile, U.S. oil prices held effectively flat, with West Texas Intermediate crude trading just below $119 a barrel.

Stock Market Today: Twitter Falls On Musk Threat

On Monday, the Dow Jones Industrial Average moved up less than 0.1%, while the S&P 500 gained 0.3%. The tech-heavy Nasdaq composite climbed 0.4%. Among exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) and the SPDR S&P 500 ETF (SPY) both moved up 0.3%.

Twitter (TWTR) slashed losses to 1.5% Monday. Twitter shares dived as much as 5.6% at the market open after Elon Musk accused Twitter of “resisting and thwarting” his right to learn more about fake accounts on the social media platform, saying it was a “clear material breach” of the terms of their merger agreement in a letter to the company.

Tesla (TSLA) stock raced 1.6% higher Monday. Among Dow Jones leaders, Apple (AAPL) rose 0.5% and Microsoft (MSFT) traded 0.5% lower in today’s stock market.

During the ongoing stock market rally, Dow Jones stocks Chevron and Merck — along with Albemarle (ALB), Eli Lilly (LLY), Northrop Grumman (NOC), Vertex Pharmaceuticals (VRTX) and Zim Integrated Shipping (ZIM) — are among IBD’s top stocks to watch for Monday.

Albemarle is an IBD Leaderboard stock. Vertex was featured in this week’s Stocks Near A Buy Zone column. Zim was a featured IPO Leader.

What To Do In The Current Stock Market Rally

The major stock indexes posted slightly positive action Monday, as the stock market rally continues.

Investors still have the green light to start buying leading stocks breaking out past correct buy points. It should put your portfolio and mindset in sync with the stock market action by gradually committing capital to leading stocks.

Use each purchase as feedback on the current strength of the market rally. Don’t panic if you miss the first couple of breakouts. If the stock market uptrend is real, there will be plenty of time to buy stocks and make money. This is an important strategy because prior follow-throughs have failed this year.

Friday’s The Big Picture column commented, “The Nasdaq was the index that suffered the most, dropping 2.5%. This means it closed the week down 1%, though it retained the bulk of last week’s 6.8% gain. The S&P 500 also had a tough time, falling 1.6%. It has traded tightly for the week, though. Crucially, both indexes avoided another distribution day due to lower volume on both the Nasdaq and the New York Stock Exchange.”

If you’re new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines. IBD offers a broad range of growth stock lists, such as Leaderboard and SwingTrader.

Investors also can create watchlists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.

Five Dow Jones Stocks To Watch Now

Dow Jones Stocks To Watch: Chevron, Merck

Dow Jones leader and energy giant Chevron is trading just above a flat base‘s 174.86 buy point, according to IBD MarketSmith chart analysis, following Monday’s 0.4% loss. The 5% buy zone tops out at 183.60. CVX stock boasts a 98 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. Investors can use the IBD Composite Rating to easily gauge the quality of a stock’s fundamental and technical metrics.

Merck, a Dow Jones and IBD Big Cap 20 stock, is still in buy range past a cup-with-handle’s 89.58 buy point, as shares fell 0.1% Monday. The 5% buy area goes up to 94.06. The stock’s relative strength line hit a new high in mid-May, but is now pulling back sharply.

Five Top Growth Stocks To Watch In The Current Stock Market Rally

Stocks To Buy And Watch: Albemarle, Eli Lilly, Northrop, Vertex, Zim

IBD Leaderboard stock Albemarle is about 6% away from a cup-with-handle’s buy point at 273.78, according to IBD MarketSmith chart analysis. In recent weeks, Albemarle passed an early buy point near 248. ALB shares rose 2.8% Monday.

Pharmaceutical giant Eli Lilly climbed 0.6% after the company delivered a promising update for its experimental obesity treatment. Eli Lilly stock is trading just below a flat base’s 314.10 buy point following a May 27 breakout.

Northrop Grumman broke out Friday past a cup-with-handle’s 477.36 buy point and is in the 5% buy area that goes up to 501.23. NOC shares tacked on 0.1% Monday.

Vertex Pharmaceuticals is tracing a cup with handle with a 276.10 buy point. For now, shares are seeing some support around their 50-day line. A strong bounce from this area would likely lead to a breakout. Conversely, a sharp break of the 50-day line would mean the basing process needs more time. Vertex shares dipped 0.5% Monday.

IPO Leader Zim Integrated is trying to break out past a cup-with-handle’s 68.80 buy point. Shares briefly moved above the entry Monday before reversing lower to close down 0.7%.

Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live

Tesla Stock

Tesla stock rallied 1.6% Monday, recovering a small portion of Friday’s 9.2% dive. But shares remain far below their 50- and 200-day lines.

Tesla stock traded as high as 1,243.49 on Nov. 4. Shares are about 43% off that record high.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares gained 0.5% Monday. The stock is still far below its long-term 200-day line. The company’s WWDC event kicked off Monday. Apple touted features of its next smartphone operating system that will power the upcoming iPhone 14 and older compatible handsets. It also showed off a second-generation Mac processor for two new laptops.

Software leader Microsoft slipped 0.5% Monday, and remains sharply below its 50- and 200-day lines. The stock closed more than 20% off its 52-week high.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.

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