Stocks closed lower Monday as Dow Jones component Apple fell on a massive fine. "Magnificent Seven" stock Nvidia popped while Super Micro Computer soared. Meanwhile, Cathie Wood snapped up a plunging stock and three Warren Buffett stocks traded near entries on the stock market today.
In addition, a couple of other noteworthy stocks are also trading near buy points. Rollins tested an entry while Fortinet is near the top of a base.
Stock Market Today: Nasdaq Falls, Small Caps Reverse
The tech-heavy Nasdaq index tried to rally but ended the session down 0.4%. Workday was among the worst laggards as it fell 6.5%. It flashed a sell signal by gapping below the 50-day moving average in high volume.
The benchmark S&P 500 reversed lower as it fell 0.1%. Hewlett Packard Enterprise stood out among the pack, surging 10.2% as it extends gains from its earnings rally.
S&P 500 components actually closed mixed, with a slight positive bias. Communication services and consumer discretionary lagged most on the stock market today. Real estate and utilities, the latter a defensive area, were the strongest sectors.
Small caps saw gains melt away as the Russell 2000 fell 0.2%. Growth stocks also succumbed to the bears, with the Innovator IBD 50 ETF sliding 0.8%.
The 10-year Treasury note rose 4 basis points to 4.22% while the 30-year gained 3 basis points to 4.35%. The five-year yield popped 5 basis points to 4.2% while the two-year jumped 7 basis points to 4.6%.
Dow Jones Today: Apple Stock Hit After Fine, Intel Jumps
The Dow Jones Industrial Average ended near session lows. It fell 98 points, or 0.3% on the stock market today.
Apple was among the worst performing Dow stocks as it fell 2.5% on news the European Union is fining the company $1.95 billion.
The EU's executive body, the European Commission, said the firm violated antitrust rules by restricting app developers from telling users about alternative ways to subscribe to music-streaming services. It has ordered Apple to remove provisions that prevent developers from doing so.
"Apple's conduct, which lasted for almost 10 years, may have led many iOS users to pay significantly higher prices for music streaming subscriptions," the commission said.
Oil major Chevron actually suffered more than Apple, however, as it fell 2.6%. Nike and Merck also lagged.
Intel fared best on the Dow Jones today as it rose 4.1%. International Business Machines also stood out due to a 2.6% lift. Big Blue is forming a base with a 196.90 buy point.
These Warren Buffett Stocks Eye Entries
One investor with a proven track record of outperformance over the long term is Berkshire Hathaway Chief Executive Buffett. A few stocks held by the firm were in or near entries Monday.
Homebuilder Lennar remained in a buy zone after clearing a flat-base buy point of 156.01. It's holding strongly above the 10-week moving average. The relative strength line paused during the base-construction period. It is now trying to move higher.
Overall performance marks it as one of the better names on the stock market today, with Lennar stock's IBD Composite Rating coming in at 94 out of a best-possible 99. Solid fundamental performance is reflected in an 81 EPS Rating.
Floor & Decor is slightly extended above the buy zone after recently breaking out from a flat base entry of 116.70. This is a first-stage pattern, a bonus because earlier-stage bases are more likely to succeed.
At the moment, earnings are its main weakness, with its EPS Rating coming in at 67. Earnings are seen falling this year but popping 40% in 2025. It is in the top 13% of stocks in terms of price performance over the last 12 months.
Ally Financial is flirting with a flat base entry of 38.03 on its weekly chart, MarketSurge analysis shows.
The financial stock turned in a 1.2% loss for the day. Indeed, its overall performance is far from ideal, with earnings the key weakness.
IBD recommends buying stocks with strong earnings and price performance rather than laggards. Look for leaders in strong industries that are showing superior earnings growth and sales, such as those in the IBD 50.
Cathie Wood Snaps Up Stock Amid Massive Plunge
Catching a falling knife is always a dangerous strategy for any investor. But Ark Invest Chief Executive Cathie Wood was at it again as she piled into a couple of plunging names.
The firm bought nearly 2,100,000 shares of biotech stock Ginkgo Bioworks for the ARK Innovation (ARKK) exchange traded fund as well as additional shares for the ARK Genomic Revolution ETF (ARKG).
The penny stock fell 2.3% and is trading around 51% below its 2023 high of 2.55. It is down an even more eye-watering 92% from its all-time high of 15.86, which it reached in 2021.
Among other moves, ARKF bought almost 290,000 shares in Archer Aviation, which itself is down around 40% of its 2023 high of 7.49.
By contrast, ARKK sold nearly 39,000 shares of Coinbase Global on Friday. This was a costly decision given the stock closed 11% higher Monday. Bitcoin popped to just below the $68,000 level per token on the stock market today.
Bear in mind, Investor's Business Daily does not recommend buying stocks priced under $10. It is difficult for retail investors to find quality stocks trading that level.
Magnificent Seven: Nvidia Jumps As Tesla Stock Lags
Magnificent Seven stocks endured mixed fortunes Monday.
Nvidia fared best as it turned in a gain of 3.6%. The Leaderboard stock is extended past its most recent entry. The chip stock, a leader in artificial intelligence, continues to climb after overcoming brief resistance at the 800 level. UBS reiterated a buy rating on Nvidia stock.
E-commerce giant Amazon.com was flat while Microsoft and Meta Platforms all turned in losses of less than 1%.
Google-parent Alphabet had another tough session as it fell 2.8% in above-average volume. It continues to show weakness amid the fallout from criticism of its Gemini artificial intelligence system, and is now testing its 200-day moving average.
Tesla fared worst of the group as it fell 7.2%. It comes after the lawyers who scotched Elon Musk's $56 billion Tesla pay package in court demanded $6 billion in shares as payment on Friday. The electric-vehicle maker remains stuck below its 50-day and 200-day moving averages.
Super Micro Soars After S&P 500 Nod
Super Micro Computer had an outstanding session on the stock market today as it rocketed almost 25%.
It made more gains following the announcement it is to join the S&P 500 in place of Whirlpool. In contrast, the washing machine maker was up fractionally.
On Monday, Goldman Sachs initiated Super Micro stock with a neutral rating and 941 price target. Analyst Michael Ng sees shares as "fairly valued" given strong gains since the start of 2023.
Super Micro is up nearly 1,300% from the 2022 closing price of 82.10. Super Micro has been an AI winner due to its specialization in servers and storage solutions. Ng sees rising competition from the likes of Dell Technologies and Cisco Systems in coming years, however.
Meanwhile, Deckers Outdoor saw a much less aggressive pop of around 3% with it, too, slated to join the benchmark S&P 500 index. Zions Bancorp, which is exiting it, actually moved up more than 2%.
The changes will take effect before the market opens on Monday, March 18.
JetBlue, Spirit Merger Fails
JetBlue and Spirit Airlines had mixed fortunes after the companies decided to call off their mooted $3.8 billion merger. The decision comes after a court ruling that the deal would reduce competition and harm cost-conscious fliers.
JetBlue stock rallied 4.3% and is trading above its major and short-term moving averages, MarketSurge analysis shows.
In contrast, Spirit stock plunged 10.9% to a near-record low. Analysts predict losses for the air carrier in both 2024 and 2025. The moves underline the inherent risks of betting on mergers, especially under the Biden Administration, which has taken a tough stance on takeovers.
Stock Market Today: Ford Stock Jumps Amid EV Sales Pop
Ford Motor also performed well on the stock market today as it jumped amid a large increase in electric-vehicle sales. The automotive giant saw U.S. overall sales soar 10.5% year over year in February.
EV sales jumped 81%, though just shy of 90% of the company's sales still came from cars and trucks with an internal combustion engine. In total, it sold 174,192 vehicles in February.
The stock ended off highs but still gained 2.2%, pulling away from its 200-day moving average. The 200-day line remains above the key 50-day line for now.
Meanwhile, Li Auto triggered the 7% to 8% sell rule as it sharply reversed below a 42.35 double-bottom base entry in high volume.
Outside The Dow Jones: 2 Stocks Near Buy Points
With the stock market in a confirmed uptrend, it remains important to keep an eye on potential breakouts.
Rollins is in a buy zone after clearing a cup-with-handle entry of 44.43. It managed to close above the buy point after briefly falling back below it.
Overall performance remains strong for the pest control play, as reflected in its IBD Composite Rating of 95. It also holds a strong EPS Rating of 95; however, lackluster fund sponsorship is one negative here.
Fortinet got closer to a breakout on the stock market today after shares formed a 33-week cup-with-handle base. The ideal entry point here is 73.91.
The stock boasts strong earnings performance. Big Money is also keen on the stock, with its Accumulation/Distribution Rating coming in at B. In total, 48% of its stock is held by funds, according to MarketSurge data.
Please follow Michael Larkin on X, formerly known as Twitter, at @IBD_MLarkin for more analysis of growth stocks.
