Dow Jones Up in Mixed Market as 3 Warren Buffett Stocks Eye Buy Points; Coinbase dives as Bitcoin falls

The Dow Jones Industrial Average rose as the indices closed mixed on Monday. A trio of Warren Buffett stocks are near buy points, including MasterCard (MA) and Taiwan Semiconductor (TSM). Meanwhile, Coin base (COIN) and Riot Blockchain (RIOT) dived as bitcoin fell.

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A couple of notable stocks made bullish moves amid the mixed action. Pinterest (PINS) and User (BRKR) both tested entries.

Treasury yields rose due to increasing calm over the banks. The 10-year yield rose 16 basis points to 3.54%, while the two-year yield rose 24 basis points to 4.02%, making the yield curve more inverted.

Meanwhile, the Dallas Fed’s manufacturing index fell to -15.7 in March. This was a dip from -13.5 in February. Analysts had expected it to improve to -10.

Nasdaq Makes Small Caps Shine

The Nasdaq lagged behind the other major indexes after last week’s excess return. It closed down 0.5 percent. Dexcom (DXCM) was a strong performer here, rising 1.7%.

The benchmark S&P 500 faded late, but was still up 0.2%. First Republic Bank (FRC) stood out here as it was 11.8% vaulted.

The S&P 500 sectors were mostly positive. Energy, finance and industry were the best. Communications services, real estate and technology were the only sectors to close in negative territory.

Solid action among financials boosted small caps, with the Russell 2000 rising 1.1%. Growth stocks saw early gains fade, but the Innovator IBD 50 ETF ( FFTY ) ended up 0.2%.

Dow Jones Today: Microsoft, Apple Stock Lag

The Dow Jones posted the best gain of the three major indexes. It rose almost 200 points, or 0.6%.

IBM ( IBM ) was the top Dow performer as it jumped 3.2%. JPMorgan Chase (JPM) was also strong, rising 2.9%.

Two of last week’s strong performers were lagging behind. Microsoft ( MSFT ) fell 1.5% as the safety of Big Tech eased. That’s just below a 276.86 entry.

apple ( AAPL ) ended the session down 1.2%. Despite this, it remains clear for all moving averages.

Three Warren Buffett stocks look strong

Few investors are fatter than Warren Buffett. A trio of stocks owned by his firm Berkshire Hathaway (BRKB) looks bullish.

Mondelez International (MDLZ) is in a buy zone after clearing a flat-base entry at 68.91, MarketSmith analysis shows.

MDLZ stock is a strong all-around performer, with its IBD Composite Rating coming in at 89 out of 99. Big Money has been picking it up lately.

Mastercard forms a flat base with an ideal entry point at 390.10. The stock has cleared its short-term moving averages and is just shy of its 50-day line.

The MA stock has an IBD Composite Rating of 93. Earnings are a key strength, with the payments stock having an EPS rating of 88 out of 99.

Taiwan Semiconductor is another stock to add to your watchlist. It is in a consolidation with an ideal entry point at 98.10. Earnings are particularly strong here, while it ranks in the top 12% of stocks in terms of price performance over the last 12 months.

Bank shares: First Citizens explodes on SVB deal

First Citizens BancShares (FCNCA) rallied sharply on news of a deal for its First-Citizens Bank & Trust unit.

It has agreed to buy almost all loans and take over all customer deposits from the collapsed Silicon Valley Bank.

In a research note ahead of the open, DA Davison said the buyout deal “pushed equity futures higher” and served to calm the banking sector.

First Citizens stock broke through its 50-day and 200-day moving averages, MarketSmith analysis shows. It ended the day up 53.7%, the best day ever, according to Dow Jones Market Data.

But regional banks are staying well clear of recent peaks despite being in comeback mode. The iShares US Regional Banks ETF ( IAT ) rose 2.4% today, but is more than 30% off where it stood back in February.

Tesla shares stable despite bullish call

Tesla ( TSLA ) made little progress despite a couple of analysts. It rose 0.7 percent

Barclays bullishly reiterated TSLA shares as overweight, saying a “modest beat” in the first quarter with production “modestly higher than deliveries” could give it a boost.

Tesla’s deliveries in the first quarter are expected to reach a record high. However, analysts also expect earnings to fall compared to 2022.

Citigroup also raised its price target on Tesla shares to 192 from 146, although it maintained a neutral rating.

Tesla is building a base below the 200-day line, which is below the potential buy point of 217.75. TSLA completed a strong run in January through mid-February. It is still up nearly 80% so far this year.

Coinbase makes plunges; Bitcoin pressured

Cryptocurrency stocks came under pressure amid yet more legal maneuvering in the space.

The Commodity Futures and Trading Commission (CFTC) claims in a complaint that Binance violated federal law to attract US users.

The company itself, founder and CEO Changpeng Zhao, and its former compliance officer, Samuel Lim, are all named in the lawsuit, which was filed Monday in federal court in Illinois.

Coinbase, which was previously served with a notice from the SEC, was hammered lower. COIN plunged 7.8%, although it is still up around 86% so far this year.

Bitcoin, the most famous cryptocurrency, fell 3.6% on Monday. It is still up more than 60% in 2023 despite the negative news.

Other digital currency plays also struggled. Grayscale Bitcoin Trust (GBTC) fell 4.8% while Bitcoin miner Riot Blockchain plunged 6.8%.

Outside the Dow Jones: PINS stocks break out

While the market is in a correction, a couple of stocks still tried to break out on Monday.

Pinterest briefly hit a buy point at 29.27, but sank back into the base. Volume was above average, an encouraging sign. The relative strength line hit new highs, which is also bullish.

Bruker came just shy of passing a flat buy point at 76.91. The medical research systems stock is also a strong all-around performer.

Buying at the moment carries additional risks, which means that it may be wiser to keep an eye on them for the time being.

Follow Michael Larkin on Twitter at @IBD_MLarkin for more growth stock analysis.

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