The Dow Jones Industrial Average was higher on Monday after blue chips got a lift Apple (AAPL) And Boeing (BA). Tesla (TSLA) soared amid boasts from CEO Elon Musk, as well as from fellow Magnificent Seven stocks Alphabet (GOOGL) And Nvidia (NVDA) fell on the stock market today. And famed investor Cathie Wood switched to diving AI stocks.
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Meanwhile, three notable stocks are currently struggling near their entry: Howmet Aviation (HWM), Broadcom (AVGO) And Step (LRN).
Stock market today: S&P 500 up, biggest gain
Stocks struggled to remain positive as they looked to build on last week's gains. The Nasdaq composite slid into negative ground. But SiriusXM (SIRI) did well here, with an increase of almost 5%.
The S&P 500 also ended up in negative territory. Albemarle (ALB) did well here, as the price rose by about 7% Domino's Pizza (DPZ) rose more than 5% after an earnings beat.
Big global (PARA) also outperformed the benchmark index as it rose more than 3% amid speculation that CEO Bob Bakish could be fired amid merger talks. It is above the 50-day moving average, but below the 200-day mark. The MarketSurge analysis shows this. The largest revenues are paid after closing.
The S&P 500 sectors were mostly positive. Consumer durables and technology rose the most. Communication services and financial services lagged behind.
Small-cap stocks outperformed, with the Russell 2000 up nearly 1%. The Innovator IBD 50 (FFTY) the exchange-traded fund fell fractionally in the stock market today.
Treasury yields were lower ahead of the next Fed meeting, which starts on Tuesday. The 10-year government bond fell five basis points to 4.62%, while the 30-year government bond fell four basis points to 4.74%. The five-year rate fell by five basis points to 4.64%, while the two-year rate fell by three basis points to 4.98%.
Dow Jones Today: Apple Stock Pops, Boeing Flies
The Dow Jones Industrial Average pared its gains, rising 0.1% on recent action.
Apple jumped after Bernstein upgraded the stock to outperform the market. Analyst Toni Sacconaghi argued that concerns about China's weakness may be exaggerated. He thinks “the prevailing weakness in China is cyclical rather than structural.”
The share rose more than 3%. According to the report, the country has now regained the 50-day moving average MarketSurge Chart Analysis.
Boeing (BA), however, did slightly better today in the Dow Jones, with an increase of almost 3%. Caterpillar (CAT) And Amgen (AMGN) were also top performers on the much-watched index.
Intel (INTC) lagged behind with a decline of more than 2%. United Health (UNH) was also a laggard, down more than 1%.
Cathie Wood loads up her diving supplies
Cathie Wood, CEO of ARK Invest, is never afraid to raid her piggy bank when she gets the chance to buy a promising name after a deep dive.
And on Friday she was at it again, buying more than 100,000 shares Palantir Technologies (PLTR) for the ARK Autonomous Technology & Robotics (ARKQ) exchange rate fund.
Palantir shares are seen as an artificial intelligence game and are prone to wild price swings. It is down as much as 26% from the March 7 high of 27.50. It remains below the key 50-day line as it forms a consolidation with the left side of 27.50 serving as a potential buy point.
Unlike some names favored by the star fund manager, Palantir remains positive this year. So far in 2024, this has increased by more than 32%. It also has a formidable Composite Rating of 98.
Palantir previously won a new US Army contract worth $178 million for Project Titan, a battlefield system that uses artificial intelligence.
Other moves by the reckless Wood included the purchase of Roku (ROKU) And Metaplatforms (META) for the ARK Innovation ETF (ARKK).
But while buying a seemingly bargain is a tempting proposition, it can often leave investors incurring losses. IBD recommends buying stocks with strong earnings and price performance. Look for leaders in strong industries that demonstrate superior earnings growth and revenue. The IBD50 is a rich hunting ground for such issues.
Warren Buffett Stocks Near Buy Points
There are few investors more praised than Warren Buffett, and Apple is one of his top holdings. But a few other shares of Oracle of Omaha's Berkshire Hathaway are currently near buy points.
Dialysis supplier DaVita (DVA) has formed a flat base with an ideal buy point of 141.54. It broke above a trendline around 135 and had already reclaimed the 50-day moving average. The overall strong performance has earned the company an IBD Composite Rating of 91. The Earnings Per Share Rating is 96 out of 99.
Capital one financial (COF) is nearing the top of its buy zone above a flat base at 140.86. It has recovered after gaining support at the 50-day mark.
The credit card company ranks in the top 11% of issues in terms of price performance over the past year. Profits will increase by 9% this year and 16% in 2025.
And Coca-Cola (KO) tests a flat base entry of 61.62. This is a base in the first phase, a bonus. The overall performance isn't ideal, with a Composite Rating of 78. But the solid dividend offers a 3.14% yield, by far better than the S&P 500 average of 1.39%.
Stock market today: Tesla rises, Elon Musk gives AI bragging rights
Shares of Tesla continued to rise on the stock market today after it emerged that the company has struck a deal that paves the way for it to bring its Full Self-Driving feature to China.
Tesla will deploy its autonomous driving services based on mapping and navigation functions from the Chinese technology giant Baidu (BIDU).
Wedbush Securities analyst Dan Ives applauded the move, which came after CEO Elon Musk visited China this weekend. Ives called the visit a “home run.” He has a price target of 275 and an outperform rating on Tesla stock.
As if that wasn't enough, Musk also took to his social media platform X to brag about artificial intelligence initiatives at the electric car giant.
“Tesla will spend about $10 billion this year on combined training and AI, the latter mainly in the car,” he says. Musk wrote. “Any company that doesn't spend at this level and does it efficiently cannot compete.”
Tesla stock rose nearly 14%, a strong move considering it has a market cap of more than $600 billion. The price has risen above the 50-day moving average again.
The stock's relative strength line is also trending higher after recent declines, although it still has a lot of ground to make up. Tesla shares remain down more than 22% since the beginning of the year.
Tesla is on pace for its biggest gain since March 9, 2021, when it rose 19.6%, according to FactSet data.
Beautiful Seven: Nvidia Stock, Alphabet Fall
Besides Tesla, other stocks in the Magnificent Seven had mixed luck at the start of a new week.
Nvidia (NVDA) fell by 1%. The AI play is trading near the 50-day line as it forms a new consolidation. It is a member of the Investor's Business Daily Leaderboard list of top stocks.
Google parent Alphabet (GOOGL), however, lagged the most, falling just over 3%. It's paring some gains after a strong jump following last week's earnings results.
Metaplatforms (META) continues to struggle after a disappointing quarterly report last week, which saw it fall nearly 3% in late trading.
Microsoft (MSFT) fell by more than 1%, while Amazon.com (AMZN) posted a fractional gain.
Outside Dow Jones: three stocks in view
As stock market action improves, investors should look for stocks near buy points.
Howmet Aerospace is approaching a flat entry of 69.55 on the stock market today. The relative strength line is approaching a new high. The stock just reached its 50-day moving average, an encouraging sign. It has a best possible IBD Composite Rating of 99.
Earnings are expected on Thursday, so it's something to keep an eye on for now. One approach highlighted by IBD is the use of options as a strategy to reduce risk around income.
Broadcom has formed a second phase double bottom base. The ideal entry point here is 1,403.98, The MarketSurge analysis shows this.
Stride is also something to watch as it handles some post-earnings gains as it moves toward a buy point. The education piece attempts to achieve an early stage consolidation of 69.70.
It rose on high volume after reporting last week's gains. Earnings rose 23% to $1.60 per share, while revenue rose 11% to $521 million.
Stride stock has a composite rating of 97 and its B+ accumulation/distribution rating reflects institutional buying of late. In total, 71% of the shares are held by funds.
Follow Michael Larkin on X, formerly known as Twitter, at @IBD_MLarkin for more growth stock analysis.
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