The Dow Jones Industrial Average turned positive in afternoon trading Monday along with the Nasdaq composite. Johnson & Johnson (JNJ), American Express (AXP) and Microsoft (MSFT) led the way in the Dow Jones today, but Coca-Cola (KO) faded after a strong start despite a strong Q1 earnings report.
Leaderboard stock Microsoft (MSFT) reports earnings Tuesday after the close. The Zacks consensus estimate is for adjusted profit of $2.18 a share, up 12% from the year-ago quarter. Revenue is seen rising more than 17% to $48.96 billion.
Money flowed into bonds Monday, sending the 10-year Treasury yield lower by 1o basis points to 2.81% after hitting a low around 2.76%.
Outside The Dow Jones
A sell-off in oil and gas stocks weighed on the S&P 500, but the index reversed higher after falling 1.7% intraday. Halliburton (HAL) and Schlumberger (SLB) gapped below their 50-day moving averages but were off lows. The Energy Select Sector SPDR ETF (XLE) also gapped below its 50-day moving average but pared losses.
Mosaic (MOS) plunged more than 5% in the S&P 500 today amid broad-based weakness in the fertilizer group. After slumping nearly 8% last week, the group was down another 5% at one point Monday.
The Nasdaq composite also reversed higher after falling 0.9% intraday. The index slumped 3.8% last week.
CRWD stock found support near its 50-day moving average, but the stock’s 200-day line is still a potential resistance level to watch. The leader in the group is PANW stock, which is near highs while holding support at the 50-day line. Qualys (QLYS) also deserves respect in the group, with the stock only 5.5% off its all-time high 150.10.
IBD’s security software group was one of the day’s top performers, up around 2.5%. Strength in beaten-down enterprise software stocks helped fuel the group to a gain of around 1.5%.
Inside IBD Growth Screens
Silicon Motion Technology (SIMO) was a top performer in the MarketSmith Growth 250, up around 10%. Early Monday, Bloomberg reported the company is considering a sale amid increased takeover interest. SIMO makes flash controllers for solid-state storage devices.
Follow Ken Shreve on Twitter @IBD_KShreve for more stock market analysis and insight.
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