Bitcoin, Tesla In Focus After First Citizens Deal Sparks Mixed Stock Market


Dow Jones futures were little changed ahead of Tuesday’s open after the Dow Jones Industrial Average rallied 194 points Monday. Bitcoin tumbled more than 3% after cryptoexchange Binance and its Chief Executive Changpeng “CZ” Zhao were sued by the Commodity and Futures Trade Commission (CFTC). Meanwhile, Tesla stock rallied on Wall Street’s record forecasts for the EV giant’s deliveries in the first quarter.


The CFTC sued Binance, alleging the world’s largest cryptocurrency exchange violated U.S. rules that require futures and other derivatives to be traded on regulated platforms.

The price of Bitcoin dropped around 3.3% Monday, trading around $27,000 in late-day trade. Bitcoin is on a tear in 2023, up more than 65% year to date, according to Coindesk. Cryptocurrency exchange Coinbase (COIN) tumbled nearly 8%, ending right at the 50-day line.

Stock Market Today

The stock market received an early boost Monday after First Citizens BancShares (FCNCA) bought large pieces of FDIC-controlled Silicon Valley Bank. First Republic Bank (FRC) jumped nearly 12% on hopes of a resolution in the banking crisis.

First Citizens shares soared 53% Monday, with the SPDR S&P Regional Bank ETF (KRE) climbing 0.9%. Among the big U.S. banks, JPMorgan Chase (JPM) and Citigroup (C) rose 2.9% and 3.9%, respectively.

But the major stock indexes ended mixed, with the Dow Jones Industrial Average rising 0.6%. The S&P 500 gained 0.2%, while the tech-heavy Nasdaq composite dropped 0.5%.

Electric-vehicle giant Tesla (TSLA) traded up 0.7% Monday. Among Dow Jones stocks, Apple (AAPL) fell 1.2% and Microsoft (MSFT) dropped 1.5% in today’s stock market action.

Align Technology (ALGN), IBD SwingTrader stock Meta Platforms (META) and IBD Leaderboard Palo Alto Networks (PANW) — as well as Dow Jones stocks Cisco Systems (CSCO) and Nike (NKE) — are among the top stocks to watch in the ongoing stock market correction.

Palo Alto is an IBD Leaderboard stock. Cisco was featured in this week’s Stocks Near A Buy Zone column. And Meta is an IBD SwingTrader stock. Palo Alto, Align, Microsoft and Meta were all recent IBD Stock Of The Day subjects.

3 Top Growth Stocks To Buy And Watch In The Current Stock Market Correction

Dow Jones Futures Today: Oil Prices, Treasury Yields

Ahead of Tuesday’s opening bell, Dow Jones futures, S&P 500 futures and Nasdaq 100 futures were little changed vs. fair value in overnight trading. Remember that overnight action in Dow Jones futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

The 10-year U.S. Treasury yield rose to 3.52% Monday, bouncing back from last week’s losses. Oil prices rebounded more than 5% Monday, with West Texas Intermediate futures trading at $73 a barrel.

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What To Do In The Ongoing Stock Market Correction

Now is an important time to read IBD’s The Big Picture column with the stock market trend still in a “market in correction” amid volatile action in recent weeks.

With the market in correction, investors should mostly, if not entirely, be on the sidelines until a follow-through day triggers a new uptrend. Now is a good time to build a robust watchlist of actionable stocks in leading groups.

(Check out IBD Stock Lists like the IBD 50 and Stocks Near A Buy Zone, for additional stock ideas.)

Five Dow Jones Stocks To Watch Now

Dow Jones Stocks To Watch: Cisco Systems, Nike

Cisco Systems is rapidly approaching flat base‘s 51.84 buy point, according to IBD MarketSmith pattern recognition. Bullishly, the stock’s relative strength line hit a new high last week, a sign of stock market outperformance. CSCO stock rose 0.1% Monday.

Nike shares continue to trace a flat base that has a 131.41 buy point amid the stock’s recent rebound. The stock is trying to regain its 50-day line, which is a key level to watch. NKE stock moved down 2.4% Monday.

Top Stocks To Watch: Align, Meta, Palo Alto

Align Technology continues to trace a consolidation that has multiple buy points: a 357.10 early entry and a conventional entry at 368.97. ALGN stock is looking for support around its 50-day moving average. If the stock breaches this level, then further weakness would be expected.

Back story: The company makes clear teeth-straightening systems called Invisalign. UBS analyst Kevin Caliendo says investors recently regained confidence in Align stock, which has surged 50% this year. December-ended quarter results from Align and its competitors, management commentary, U.S. economic data and a recent uptick in demand for Invisalign cases support this view, he said in a note to clients.

Back story: Like social media rivals, Meta is struggling due to a sharp reduction in advertising revenue as clients squirm over macroeconomic concerns, recession fears and higher interest rates. This is happening as it spends billions of dollars on a risky bet to build the “metaverse,” a virtual reality world that has yet to take hold.

IBD Leaderboard stock Palo Alto Networks continues to trade above and below its 192.94 buy point out of a cup with handle amid Monday’s 0.5% move higher. The buy area will run up to 202.59 if the stock retakes the entry.

Back story: Through acquisitions, Palo Alto Networks has expanded into endpoint security and vulnerability management. Endpoint tools detect malware on laptops, mobile phones and other devices that access corporate networks.

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

Tesla Stock

Tesla stock climbed 0.7% Monday, as it continues see some support around its 50-day moving average line. Shares closed Monday around 50% off their 52-week high.

Tesla deliveries in the first quarter, which are due out in early April, are expected to set another record, prompting analysts to say Monday that if the global electric-vehicle giant beats estimates Tesla stock could receive a bump. But Wall Street forecasts Tesla 2023 per-share earnings shrinking compared with 2022.

With Tesla preparing to release first-quarter 2023 delivery and production data in early April, Barclays analyst Dan Levy wrote Monday he expects a “modest” deliveries beat. Wall Street expects around 430,000 Tesla deliveries.

“Concerns have built on the pace of deliveries amid weakening demand signals. However, we believe commentary on the pace of production likely implies some upside, which we assume will be ~430k units in the quarter,” Levy wrote.

On Tuesday, weekly China EV insurance registration data could be an important gauge for Tesla demand in the world’s largest EV market, which is in the midst of a huge price war started by Tesla.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares declined 1.2% Monday, ending a two-day win streak. Shares remain near their recent highs.

Microsoft shares are again trying to break out above a flat base’s 276.86 buy point, but closed back below the entry during Monday’s 1.5% loss. The stock is just below the 5% buy area that goes up to 290.70.

Microsoft shares surged recently after the company announced that it is adding artificial intelligence tools to its popular Office productivity applications. That follows the company’s investments in AI startup OpenAI, the firm behind the buzzy ChatGPT application.


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