The Dow Jones Industrial Average closed higher Monday while Trump Media & Technology (DJT) surged clear of a key benchmark. Tesla (TSLA) soared amid a boast from CEO Elon Musk, but fellow Magnificent Seven components Alphabet (GOOGL) and Meta Platforms (META) fell on the stock market today. And famed investor Cathie Wood loaded up on a diving AI stock.
X
Meanwhile, a trio of noteworthy stocks are hanging tough near entries: Howmet Aerospace (HWM), Broadcom (AVGO) and Stride (LRN).
Stock Market Today: Nasdaq Gains, Paramount CEO Out
Stocks fought off some wobbles to close in positive territory as they looked to build on last week’s gains. The Nasdaq composite rose 0.4%. SiriusXM (SIRI) fared well here as it popped 5%.
The S&P 500 also battled its way out of negative ground, notching a 0.3% gain. Albemarle (ALB) did well here as it rose 7.6% while Domino’s Pizza (DPZ) popped 5.6% after delivering an earnings beat.
Paramount Global (PARA) also outperformed on the benchmark index as it rose 2.9%. It was reported Chief Executive Bob Bakish is stepping down amid ongoing merger discussions. He will be replaced by a trio of executives. Paramount stock is above the 50-day moving average but below the 200-day line, MarketSurge analysis shows.
The S&P 500 sectors ended the day mostly positive. Consumer discretionary and utilities rose the most. Communication services and financials were the only areas to close in negative territory.
Small-cap stocks outperformed, with the Russell 2000 rising 0.7%. The Innovator IBD 50 (FFTY) exchange traded fund rose 0.2% on the stock market today.
Treasury yields fell heading into the next Fed meeting, which kicks off Tuesday. The 10-year Treasury note dipped six basis points to 4.61% while the 30-year skidded five basis points to 4.73%. The five-year yield slipped five basis points to 4.64% while the two-year fell three basis points to 4.98%.
Dow Jones Today: Apple Stock Pops, Boeing Flies
The Dow Jones Industrial Average rallied into the close and finished 146 points higher. This equates to a 0.4% gain.
Apple popped after Bernstein upgraded the stock to outperform from market perform. Analyst Toni Sacconaghi claimed concerns over China weakness may be overdone. He thinks “prevailing weakness in China is more cyclical than structural.”
The stock ended the session up 2.5%. It has now reclaimed the 50-day moving average, according to MarketSurge chart analysis.
Boeing (BA) fared slightly better on the Dow Jones index, though, as it climbed 3.8%. Caterpillar (CAT) and Amgen (AMGN) were also top performers on the Dow.
Intel (INTC) lagged as it fell 1.6%, finishing off lows for the day. UnitedHealth (UNH) was another laggard as it fell 1.3%.
Cathie Wood Loads Up On Diving Stock
ARK Invest Chief Executive Cathie Wood is never afraid to raid her piggy bank when she has the opportunity to buy a promising name after a deep plunge.
And she was at it again on Friday, snapping up more than 100,000 shares of Palantir Technologies (PLTR) for the ARK Autonomous Technology & Robotics (ARKQ) exchange traded fund. Palantir stock was up 1.4% Monday.
Seen as an artificial intelligence play, Palantir stock is prone to wild price swings. It has fallen as much as 26% from its March 7 high of 27.50. It remains below the key 50-day line as it forms a consolidation, and the left side high of the pattern at 27.50 serves as a potential buy point.
Unlike some names favored by the star fund manager, Palantir remains positive for the year. So far in 2024 it is up nearly 33%. It also has a formidable Composite Rating of 98.
Palantir recently won a $178 million U.S. Army contract for project Titan, a battlefield system using artificial intelligence.
Other moves made by the swashbuckling Wood included purchases of Roku (ROKU) and Meta Platforms (META) for the for the ARK Innovation ETF (ARKK).
But while buying a seeming bargain is a tempting proposition, it can often leave investors nursing losses. Investor’s Business Daily recommends buying stocks with strong earnings and price performance. Look for leaders in strong industries that are showing superior earnings growth and sales. The IBD 50 is a rich hunting ground for such issues.
Donald Trump Stock Surges, Retakes Key Benchmark
The roller coaster ride continued for Trump Media & Technology investors. On Monday, shares surged 12.4%.
This allowed Trump Media stock to close back above its key 50-day moving average. The stock has now rallied nearly 50% from its April 16 low of 22.55, where it found buying support at the 200-day line.
Volume has been running high in the stock over the past couple of sessions as it continues its ascent. Nevertheless, it retains a poor IBD Composite Rating of 40 out of 99.
The stock seems to be having some success since executives moved to take on short-sellers. The company issued advice to shareholders in how they can stop their shares being lent out to traders betting on the stock price dropping.
Trump Media CEO Devin Nunes last week asked several House committees to investigate whether there has been naked short selling of the firm’s stock. This is when a seller shorts an assets without owning, borrowing, or securing the right to borrow them.
If a short squeeze occurs it can power sharp upward moves on asset prices.
Stock Market Today: Tesla Soars, Elon Musk Makes AI Boast
Tesla stock continued to soar on the stock market today after it emerged the firm has nailed 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 provided by Chinese technology giant Baidu (BIDU).
Wedbush Securities analyst Dan Ives cheered the move, which came after CEO Elon Musk visited China over the weekend. Ives termed the visit a “home run.” He has a 275 price target and an outperform rating on Tesla stock.
As if that wasn’t enough, Musk also took to his social media platform, X, to boast about artificial intelligence initiatives at the electric vehicle giant.
“Tesla will spend around $10B this year in combined training and inference AI, the latter being primarily in car,” Musk wrote. “Any company not spending at this level, and doing so efficiently, cannot compete.”
Tesla stock soared to a 15.3% gain at the close, a strong move considering it has a market cap of more than $600 billion. It has rocketed back above its 50-day moving average.
The stock’s relative strength line is also turning higher after recent declines, though it has a lot of ground to make up. Tesla stock remains down nearly 22% since the start of the year.
Tesla turned in its largest gain since March 9, 2021, when it rallied 19.6%, according to FactSet data.
Magnificent Seven: Meta Stock, Alphabet Fall
Besides Tesla, other stocks in the Magnificent Seven were having mixed luck at the start of a new week.
Nvidia (NVDA) fought its way out of negative territory to end the session flat. The AI play is trading near its 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) lagged most, dipping 3.4%. It is digesting some gains after a strong jump following earnings last week.
Meta Platforms (META) continued to struggle following a disappointing quarterly report last week, skidding 2.4%.
Microsoft (MSFT) ended the day down 1%, while Amazon.com (AMZN) made a gain of 0.8%.
Outside Dow Jones: Three Stocks Eye Entries
With stock market action improving, investors should be on the lookout for stocks holding near buy points.
Howmet Aerospace is nearing a flat-base entry of 69.55 on the stock market today. Its relative strength line is nearing a fresh high. The stock has just retaken its 50-day moving average, an encouraging sign. It has a best-possible IBD Composite Rating of 99.
Earnings are due Thursday, which makes it one to watch for now. An approach highlighted by IBD is to use options as a strategy to reduce risk around earnings.
Broadcom has formed a second-stage double-bottom base. The ideal entry point here is 1,403.98, MarketSurge analysis shows.
Stride is another one to watch as it digests some post-earnings gains as it moves toward a buy point. The education play is trying to reach an early-stage consolidation entry of 69.70.
It soared in high volume after reporting earnings last week. Earnings popped 23% to $1.60 a share while revenue climbed 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 stock is held by funds.
Please follow Michael Larkin on X, formerly known as Twitter, at @IBD_MLarkin for more analysis of growth stocks.
YOU MAY ALSO LIKE:
Stock Market Forecast: AI Investing And four More Predictions
Fed Meeting Due: The Latest Rate-Cut Odds
These Are The five Best Stocks To Buy And Watch Now
Join IBD Live Each Morning For Stock Tips Before The Open
This Is The Ultimate Warren Buffett Stock, But Should You Buy It?
