Finance
Stock Market Today: Dow Jones Up While Starbucks Jumps; Donald Trump Stock Drops After Loss (Live Report)
The Dow Jones Industrial Average was lower even as the Nasdaq and S&P 500 rose around noon. Nvidia (NVDA) And Apple (AAPL) received bullish analyst commentary. Trump media and technology (DJT) fell after the last earnings report.
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The Dow Jones Industrials fell nearly 100 points, or 0.2%. It is trying to stay above the 50-day moving average after recovering to the level last week.
The tech-heavy Nasdaq composite was off session highs but still rose 0.4%. AI game Super microcomputer (SMCI) performed best here with an increase of about 8%. New problem Grail (GRAL) lagged behind with a decline of more than 3%. It remains to be seen whether the country can fulfill its quest to get to positive ground by the end of the crisis.
The S&P 500 was also positive, rising 0.3%. Insulet (PODD) had a solid session here, as it gained almost 5% after Barclays raised its price target. Albemarle (ALB) lagged behind and slipped more than 7%.
Stock market today: tech stocks, energy shine
Meanwhile, the S&P 500 sectors were mostly negative. Technology and energy performed best, while real estate and communications services fell the most.
The bears bit small caps in early trading, with the Russell 2000 down nearly 1%. The mid-cap S&P 400 fell 0.4%.
Growth stocks retreated lower, with the Innovator IBD 50 (FFTY) exchange-traded fund fell 0.1%.
Starbucks regains key benchmark amid activist action
Starbucks (SBUX) was one of the better performing stocks in the stock market today, up almost 4%. The stock is struggling to close back above its key 50-day moving average, but remains stuck in a long downtrend.
The coffee chain’s shares soared amid a Wall Street Journal report that activist investor Starboard Value has taken an interest. It is the latest activist to show interest in the company. Discussions are already underway as it appears to appease Elliott Investment Management.
With Elliott looking to make changes, if it fails to achieve its goals it could launch a proxy battle in an effort to win seats on the board. It remains to be seen if Starboard would be an ally or even try to get its own representation in the future.
Starbucks management is under pressure due to declining sales in the key US and Chinese markets. Shares of Starbucks are down more than 19% so far this year.
Stock market today: three stock entries
As the stock market tries to claw its way out of a sharp pullback, it’s a good time to find stocks that are relatively strong near potential entries. Here are a few potential candidates.
Defense contractor General dynamics (GD) has formed a flat base with an ideal entry point of 302.75.
The relative strength line has been moving higher lately. The overall excellent performance is reflected in the IBD Composite Rating of 98 out of 99.
W. Berkley (WRB) has formed a flat bottom, which can also be interpreted as a saucer bottom, with an ideal buy point of 59.46. If it breaks out, it could reach 62.43. This is a pattern in the second phase of the insurance game, which still counts as early.
Earnings performance is a key driver for the company EPS rating is 98 out of 99. The price development is not bad either: the stock is among the top 15% of issues in terms of price performance over the past twelve months.
Medical supply DaVita (DVA) has also formed a flat base with a buy point at 147.93.
DaVita operates dialysis centers, where patients with chronic kidney diseases are treated. The profits are on average with 54% over the past three quarters.
Inflation prospects are falling, debt fears are increasing
Meanwhile, a new reading showed that consumer confidence is improving on the path of inflation.
According to the New York Fed’s Consumer Expectations Survey the three-year inflation outlook has fallen to 2.3%. This was the lowest value to date, with the data set going back to June 2013.
However, consumer fear of defaults also increased, with the average chance that Americans will miss a minimum debt payment in the next three months rising to 13.3%. This was the highest level since April 2020.
10:40 am ET
Regional bank KeyCorp closes deal
Regional banks gave back much of their recent gains amid a broad downturn.
But KeyCorp (KEY), which operates through its subsidiary KeyBank, posted a double-digit profit after Bank of Nova Scotia agreed to take a minority stake in the company. Scotiabank will buy 14.9% of KeyCorp’s shares in exchange for a cash injection of approximately $2.8 billion.
The major stocks have moved away from the 50-day moving average and are now well away from an old buy point of 15.61. The MarketSurge analysis shows this.
According to Dow Jones Market Data, KeyCorp is on track for its biggest gain since November 9, 2020. On that day, it rose 18.6%
Stock market today: Monday.com makes a profit
One stock that rose today thanks to stock market gains was monday.com (MNDY).
Shares rose after the company reported strong second-quarter results. Earnings per share rose 129% to 94 cents, while revenue rose 34% to $236.1 million. This was better than Wall Street expected.
The company also targeted revenue of $245 million in the current quarter. This was higher than analyst estimates of $243 million.
The project management software maker competes with companies like Asana (ASAN) And Smartsheet (SMAR).
Monday.com stock rose more than 10% at 10:30 a.m. ET. It crossed the 50-day moving average but has suffered choppy action lately. It has an IBD Composite Rating of 93 out of 99.
Magnificent Seven: Bullish Calls for Nvidia and Apple
The so-called Magnificent Seven stock group was mostly negative in early trading, but there were a few exceptions.
Nvidia rose more than 2% after UBS reiterated the stock as a Buy and kept its price target at the 150 level. Anyway, the Leaderboard share remains almost 11% below the 50-day moving average.
Apple shares rose less than 1% after Wedbush reiterated its outperform rating with a price target of 285. Analyst Dan Ives said in a note to clients that recent Asian checks give him “increased confidence that this upgrade cycle will usher in a long-awaited renaissance.” of growth” for the company in the coming year. He also touted the potential benefits of AI.
Amazon.com (AMZN) was also slightly positive. Google parent Alphabet (GOOGL), Microsoft (MSFT) and Facebook parent Metaplatforms (META) all decreased slightly.
Tesla (TSLA) lagged the most among the select group of stocks, falling about 1.4%.
Donald Trump Stocks Fall as Losses Continue
Trump Media & Technology was punished in early stock market trading today after the company posted another quarterly loss.
Parent company Truth Social saw its loss per share decline by 12 cents, compared to a loss of 17 cents in the same quarter last year. Net loss fell to $16.4 million from $22.8 million a year earlier. About half of the loss was due to legal costs, including those from the reverse merger with Digital World Acquisition Corp. in March.
The company saw net sales drop 30% to $836,000, a third straight quarter of sales of about $800,000. It rose slightly from first-quarter revenue of $770,500.
Operating expenses in the social media business rose to $19.5 million from $4.9 million a year earlier. The stock fell almost 3% on Monday.
Trump Media has been a loser since hitting a high of 79.38 on March 26. It fell about 67% from Friday’s close levels. It has lost well over a quarter of its value in the past four weeks alone.
Follow Michael Larkin on X, formerly known as Twitter, at @IBD_MLarkin for more growth stock analysis.
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