The Dow Jones Industrial Average lagged the other major indexes Monday but still closed higher on the stock market today. GameStop plunged after its shareholder meeting, as AMC Networks plummeted on a debt move. Meanwhile, Nvidia hit an all-time high as Warren Buffett's Berkshire Hathaway cut its stake in Chinese electric-vehicle giant BYD.
The Dow Jones Industrial Average reversed higher, rising 189 points or 0.5%. The tech-heavy Nasdaq composite was even stronger, rising nearly 1%. Nasdaq component Autodesk surged 6.5% amid news that activist fund Starboard Value bought a $500 million slice of the company. It ended near session highs after building on early gains.
Meanwhile, the S&P 500 climbed 0.8%. In the S&P, Bio-Rad Laboratories outperformed with a gain of nearly 5%. Leaderboard stock First Solar ended off lows for the day but still fell 4.5%.
The S&P 500 sectors were mostly higher. Technology and consumer discretionary were the strongest areas while utilities and real estate lagged.
Small caps rallied out of the red, with the Russell 2000 up 0.7%. The Innovator IBD 50 exchange traded fund also fought its way out of negative territory, rising 1.2% on the stock market today.
Magnificent 7: Tesla Surges, Nvidia Stock Hits New High
The so-called Magnificent Seven ended up in the green after a mixed open on the stock market today.
Tesla fared best as it jumped more than 5%. The stock is above its 50-day moving average but below the 200-day line.
Apple was the next best performer as it climbed 2%. Microsoft rose 1.3%. Wedbush analyst Daniel Ives increased his Microsoft price target over the weekend to 550 from 500 and held his outperform rating.
Meta Platforms reversed and gained 0.5% as it continues to form a cup base. Google-parent Alphabet and Amazon.com each edged higher.
Nvidia touched fresh all-time highs before backing off, closing with a fractional loss.
Updated 03:21 p.m. ET
Stock Market Today: GameStop Dives After Annual Meeting
GameStop stock was getting mauled by the bears following the firm's annual shareholder meeting. The stock was near session lows after plunging 12%. It is down more than 60% from its recent high of 64.83.
Chief Executive Ryan Cohen pledged the firm would be working hard to cuts costs and improve earnings.
"Revenues without profits and prospects of future cash flows are of no value to shareholders," he told investors. Cohen also touted the strength of the firm's balance sheet following a string of stock sales as the firm took advantage of its meme stock status. However, he did not offer much insight into the company's future direction.
The company's board picks were elected and shareholders also approved a compensation proposal. The shareholder meeting was due to take place last Thursday, but got postponed amid technical issues as the livestream servers crashed amid high interest in the event.
Shareholders did not get to ask any question during the half-hour event.
Fellow meme stock AMC Entertainment was down nearly 3% on the stock market today. It currently sits more than 20% above its 50-day moving average.
Updated 01:58 p.m. ET
AMC Stock Dives, CL Clears Entry
AMC Networks plummeted more than 30% after the firm announced it is looking to sell $125 million in convertible senior notes. The debt security, which will be due 2029, will be sold to institutional buyers in a private offering.
Separate from AMC Entertainment, the lesser-known AMC Networks flashed sell signals by gapping below the 200-day and 50-day moving averages. The move came in very high volume.
Meanwhile, Colgate-Palmolive is in a buy zone after clearing a flat base entry of 95.59. The toothpaste maker squeezed out a gain of more than 1% in recent action.
Overall performance is solid, with Colgate-Palmolive's IBD Composite Rating coming in at 91 out of 99. Both earnings and stock market performance are robust. Earnings growth is expected to be steady, with per-share earnings rising 9% this year and in 2025.
Updated 12:17 p.m. ET
These Stocks Flash Sell Signals
Brazilian aerospace stock Embraer flashed a round-trip sell signal after it gave up a 14% gain from a 27.25 flat base entry. The stock is getting support at the 50-day moving average for now.
Utility meter maker Itron is trying to rally back after gapping down below its 50-day moving average. The move came in high volume and followed the announcement of an offering of $500 million of convertible senior notes.
Chinese online brokerage play Futu has fallen below its 50-day line in above-average volume, though it could yet qualify as a test. But holding on could be a bad move as it is close to round-tripping gains from a 65.44 cup-with-handle buy point.
Updated 10:43 a.m. ET
Dow Jones Today: Disney Stock Outperforms
The action was skewed to the downside in early trading.
Walt Disney was faring best on the Dow Jones today, gaining more than 1%. It remains below its 50-day moving average, MarketSurge analysis shows.
The likes of Johnson & Johnson and insurance play Travelers were also positive, though gains were fractional.
Verizon Communications was the worst Dow laggard as it fell more than 1%. However Cisco Systems and UnitedHealth were hot on its tail.
Stock Market Today: Warren Buffett Sells BYD Stock
Buffett's Berkshire Hathaway has sold off another chunk of its holdings in Chinese electric vehicle maker BYD. It sold 1.3 million shares for $39.8 million, a filing to the Hong Kong Stock Exchange showed.
It cut Berkshire's stake in the firm's Hong Kong H-shares from 7.02% to 6.9%. The company has been unloading the stock since 2022. Despite the sale, BYD stock was essentially flat on the stock market today.
Warren Buffett did not head the original investment. Instead, it was a purchase led by the Oracle of Omaha's trusted lieutenant Charlie Munger, who died at the age of 99 last year.
Earnings are strong for BYD, with its EPS Rating coming in at 91 out of 99. However stock market performance over the past 12 months has been underwhelming.
Buffett's Berkshire has made a tremendous gain in BYDDF. It bought in at a cost of about 1.02 per share, equating to a total gain of nearly 2,800%.
Outside Dow Jones: 3 Stocks Eye Entries
With the market rally still going strong, it is a good idea to watch for breakouts. Here are three potential candidates on the stock market today.
ELF Beauty has formed a cup-with-handle with an ideal buy point of 202.58. Strong overall performance is reflected in a near-perfect IBD Composite Rating of 97 out of 99. ELF stock has surged more than 33% so far this year.
Booking is closing in on a flat base ideal entry point of 3,918, but is above a 3,853 handle entry. Alternatively, investors could view the pattern as a double-bottom base, with 3,853 being another buy point.
This is a second-stage pattern, which still counts as early in a long-term advance. Both earnings and stock market performance are strong for the travel play. The Janus Henderson Forty Fund (JACCX) is among the noteworthy holders, as well as the Fidelity Contrafund (FCNTX).
Discount clothing retailer Ross Stores has formed a consolidation with an ideal entry point of 151.12, MarketSurge analysis shows. It holds an EPS Rating of 92. Stock market outperformance is its weakest attribute, though it is still within the top 18% of issues in terms of price performance over the past 12 months.
Please follow Michael Larkin on X, formerly known as Twitter, at @IBD_MLarkin for more analysis of growth stocks.
