Finance
Stock Market Today: Dow Jones Rises While US Leading Indicators Fall; Donald Trump Stock Takes a Plunge (Live Report)
The Dow Jones Industrial Average and other indices ended Monday with a boom as stocks built momentum heading into the close. Trump media and technology (DJT) undermined a key level while Nvidia (NVDA) And Apple (AAPL) were the subject of calls on Wall Street. And a trio of Warren Buffett stocks, including American Express (AXP), traded near buy points in the stock market today.
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X
Can this cybersecurity stock benefit from the CrowdStrike debacle? Future earnings may tell.
The Dow Jones rose 237 points, or 0.6%, after making a last-minute jump. The blue chip index is now well clear of its short-term moving averages and its 50-day line.
The Nasdaq composite also traded higher in the final minutes of trading, capping its eighth straight rally with a 1.4% gain. Palo Alto Networks (PANW), which reports post-close gains, performed solidly here, up nearly 3%. Modern (MRNA) did even better with an increase of almost 4%, but remains below the major moving averages.
Starbucks (SBUX) was a laggard on the tech-heavy Nasdaq, down nearly 3%. CDW (CDW) also struggled and fell by almost 2%.
The S&P 500 also joined the party, rallying at the last minute. It finished 1% higher and completed its eighth straight gain. Estee Lauder (EL) fell more than 2% after the company reported and announced disappointing first-quarter earnings CEO Fabrizio Freda is retiring. His rival, the new holding company Warren Buffett Ultimate beauty (ULTA), saw early gains fade and lost a fraction at the end.
Stock market today: small caps excel
All sectors of the S&P 500 were positive. Consumer goods and communications services performed the best, while real estate and utilities posted the smallest gains.
Despite the positive action, volume was mixed. It was higher on the Nasdaq from the same time on Friday, while it was lower on the New York Stock Exchange.
Small caps shined, with the Russell 2000 up 1%. Growth stocks also performed better, with the Innovator IBD 50 (FFTY) exchange-traded fund rose 1.5%.
3:28 PM ET
Donald Trump shares undermine key level
Trump Media has steadily declined in recent weeks. Shares came under further pressure on Monday.
The stock fell more than 3% in late trading. It is now below the major short-term moving averages, according to MarketSurge analysis.
Trump Media also looks set to close below the April 16 low of 22.85. This would be the lowest closing price since the merger with Digital World Acquisition on March 26. Moreover, it is already on its longest losing streak since the merger.
The company is mainly owned by former President Donald Trump and has suffered heavy losses in recent quarters.
In the most recent quarter, the company posted another quarterly loss – this time of 12 cents per share. Parent company Truth Social lost $2.42 per share in the previous quarter and seven cents per share the quarter before that.
Trump Media has plummeted nearly 72% since hitting a high of 79.38 on March 26. It lost more than 28% of its value the past four weeks alone. Even taking all this into account, the increase since the beginning of the year remains almost 29%.
Nevertheless, the abysmal performance is reflected in the terrible IBD Composite Rating of 5 out of a best possible score of 99.
1:57 PM ET
Bill Ackman Stock is in a Buy Zone
Billionaire hedge fund manager Bill Ackman has a well-deserved reputation as a stock picker. One of his firm Pershing Square Capital Management’s holdings has moved back into a buy zone amid recent positive action.
Financial services play Brookfield (BN) is now trading above a cup base entry of 45.11. It gained support at the 50-day line during the recent market pullback.
While it is in the top 13% of issues in terms of price performance over the last twelve months, its EPS rating of 11 is poor. Nevertheless, Ackman is not the only notable financier. The celebrated Fidelity Contrafund (FCNTX) also has a position in the stock.
Brookfield has seen increased institutional sponsorship recently, with its accumulation/distribution rating sitting at B+.
Stock market today: GM nears key benchmark amid layoffs
Shares of General Motors rose on news that it plans to lay off more than 1,000 software and services workers.
This group of employees represents approximately 1.3% of the company’s global workforce. It comes as auto companies try to cut costs amid fears of a possible recession.
Auto stocks are cyclical, meaning they suffer more in tough economic times. GM shares rose nearly 1% on the stock market today. It is now approaching its 50-day moving average, a key technical benchmark.
The stock has been a winner so far this year, an increase of more than 27%. This is better than the gain of the benchmark S&P 500.
12:15 PM ET
US leading indicators are falling, but watch the silver lining
The Conference Board said Monday that the U.S. leading indicators index fell 0.6% to 100.4 in July. Economists had expected a decline of 0.3%, according to Econoday.
The index is designed to predict turning points in the economy, including recessions and recoveries. It is a composite of ten components, including new factory orders and unemployment claims.
“LEI continues to decline month-on-month, but the six-month annualized growth rate no longer signals a future recession.” said Justyna Zabinska-La Monicasenior manager overseeing the Conference Board’s business cycle indicators, in a written statement.
Stock Market Today: Bank Game Tests Buy Point
Breakouts were meager on Monday, despite the improving technical picture for the indexes.
One issue involving trying to clear an entry was Bank of New York Mellon (BK).
The stock tested a flat-base entry of 65.91, The MarketSurge analysis shows this. However, it has fallen below the buy point again. This is a first phase basis for the stock. Earlier bases will likely lead to good profits. The share is in the top 10% of issues in terms of price development over the past twelve months.
The overall solid performance has earned the company an IBD Composite Rating of 88 out of 99. However, earnings growth lags behind the level targeted by the IBD Investing Methodology.
Nevertheless, the stock is up nearly 26% so far in 2024. Analysts expect profits to rise 10% in 2024, before rising another 12% in 2025.
10:50 am ET
Three Warren Buffett stocks close to buy point
There are few investors who are more praised than Berkshire Hathaway (BRKB) CEO Buffett. A few shares of value investing firm Titan reached new entry points on Monday.
Shares of American Express are trading in a buy zone above a flat base entry of 244.41, The MarketSurge analysis shows this. The overall strong performance is reflected in the IBD Composite Rating of 92 out of 99. Berkshire owns 151,610,700 shares in the payments giant.
DaVita (DVA) is trading in a useful zone above a flat base buy point of 147.93. It is outside all its moving averages and looking bullish.
The company provides kidney dialysis services through a network of nearly 3,000 U.S. outpatient clinics. Berkshire owns 43% of the outstanding shares. DaVita is also a member of the IBD Leaderboard list of top stocks.
Housing stock Lennar (LEN) is currently trading in a buy zone above a basic double-bottom entry of 171.27. This is a base in the first phase, a bonus.
This is a relatively small position for Buffett, with Berkshire owning about $25 million worth of stock. With the prospect of a Fed rate cut on the horizon, the environment could become more favorable for homebuilders.
IBD recommends buying stocks with strong earnings and price performance. Look for leaders in strong industries that demonstrate superior earnings growth and revenue, such as those in the IBD50.
Stock Market Today: AMD Shares Soar Amid $4.9 Billion Deal
Nvidia was the undisputed chip leader in 2024, leaving behind rivals such as Advanced micro devices (AMD) in the dust.
But AMD moved higher Monday amid news that it has signed a definitive agreement to acquire ZT Systems for $4.9 billion in cash and stock. CEO Lisa Su said the purchase of the privately held company will help her company pursue its own artificial intelligence strategy.
“Very pleased to announce that we have signed an agreement to acquire leading hyperscale solutions provider ZT Systems,” she said on X. “Next big step in our AI strategy by combining our silicon, software and ZT world-class systems expertise to enable rapid deployment of AMD AI solutions at scale for our cloud and business customers.”
AMD shares hit the stock market today, rising about 3%. However, it remains below the 50 and 200 day moving averages, according to MarketSurge analysis.
Magnificent Seven: Nvidia falls despite bullish call
The so-called Magnificent Seven stock group was mixed in early trading.
Tesla (TSLA) did the best with an increase of almost 2%. It is back above all its moving averages.
Google parent Alphabet (GOOGL) rose by more than 1%. However, the price remains below the 50-day moving average. Amazon.com (AMZN) fell fractionally.
Nvidia rose slightly after Goldman Sachs reiterated its buy rating and kept a 135 price target on the stock for next week’s earnings report. Analyst Toshiya Hari believes that “customer demand among major cloud service providers and enterprises is strong.”
The Leaderboard Share remains above the 50-day moving average after reaching the key level last week.
Apple shares fell more than 1% after KeyBanc reiterated its sector weighting on the stock, citing concerns “that there won’t be a big jump in upgrade rates” even with the launch of the iPhone 16 in September.
Facebook parent Metaplatforms (META) And Microsoft (MSFT) each decreased slightly.
Follow Michael Larkin on X, formerly known as Twitter, at @IBD_MLarkin for more growth stock analysis.
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