The Dow Jones Industrial Average closed lower while the Nasdaq managed a slight gain Monday. Artificial intelligence player Monday.com jumped while Nvidia and Apple got bullish analyst comments. And Trump Media & Technology fell on the stock market today following earnings.
Stocks were off highs amid worries Iran could attack Israel in the next 24 hours. Dow stocks slipped 141 points, or 0.4%. The blue-chip index ended the day back below the 50-day moving average after rallying just above that level on Friday.
The tech-heavy Nasdaq composite saw gains fade to 0.2%. AI play Super Micro Computer was a top performer here as it surged more than 6%. New issue Grail lagged as it fell nearly 5%. Earlier in the session, Grail tried to reach positive territory but ultimately failed.
The S&P 500 was virtually flat, posting a minuscule gain. Insulet ended a solid session up more than 3% after Barclays raised its price target on the stock. Albemarle plunged nearly 7%.
Stock Market Today: Yields Fall Ahead Of Inflation Data
Meanwhile, the S&P 500 sectors were mostly negative. Technology and energy were the only positive performers, while real estate and communication services fell the most.
Breadth was disappointing, with decliners outnumbering advancers about 2-to-1 on the New York Stock Exchange and nearly 1.5-to-1 on the Nasdaq.
The Russell 2000 tumbled nearly 1%, while the midcap S&P 400 slid 0.6%, near lows for the day. But the Innovator IBD 50 exchange traded fund closed the session up 0.2%.
A couple of important inflation readings are due this week, with the Producer Price Index expected Tuesday and the Consumer Price Index scheduled for Wednesday. Both are released by the Bureau of Labor Statistics.
Treasury yields fell Monday ahead of the reports. The 10-year Treasury note dropped four basis points to 3.9% while the two-year also slipped four basis points to 4.01%.
Donald Trump Stock Dives Amid More Losses
Trump Media & Technology took a beating on the stock market today after the firm posted another quarterly loss.
The Truth Social parent saw its losses narrow to 12 cents a share compared with a loss of 17 cents a share in the same quarter last year. Its net loss fell to $16.4 million vs. $22.8 million a year earlier. About half the loss was tied to legal costs, including those from its reverse merger with Digital World Acquisition in March.
The firm owned primarily by former President Donald Trump saw net sales fall 30% to $836,000, a third straight quarter of roughly $800,000 in revenue. It did increase somewhat on the first quarter's sales of $770,500.
Operating costs at the social media play soared to $19.5 million vs. $4.9 million a year earlier. The stock ended the session down more than 5%, near lows for the day. Losses intensified as the session wore on.
Trump Media has plummeted nearly 69% since hitting a March 26 high of 79.38. It lost more than 29% of its value over the past four weeks alone.
3:26 p.m. ET
Starbucks Fights For Key Benchmark Amid Activist Move
Starbucks was one of the better performers on the stock market today, rising more than 2%. It was solidly off session highs, however, as it struggles to move clear of the critical 50-day moving average. Still, Starbucks stock remains stuck in a long downtrend.
The coffee chain's stock popped amid a Wall Street Journal report that activist investor Starboard Value has taken a stake. It is the latest activist fund to take an interest in the company.
Starbucks already is trying to appease another big investor, major activist player Elliott Investment Management, which is seeking a number of changes at the company. If Starbucks fails to achieve its aims, it could end up in a proxy battle with Elliott for seats on the company's board. It remains to be seen whether Starboard plans to be an ally or vie for its own board seats as well.
Starbucks management has come under pressure amid falling sales in the important U.S. and China markets. The stock has fallen more than 19% so far this year.
Leaderboard Stock Gets Upgrade
One stock that was digging in amid the broader negative action is Eli Lilly. It was virtually flat in afternoon trade.
Eli Lilly got a boost Monday after Deutsche Bank upgraded it from hold to buy and lifting its price target to 1,205 per share. Analyst James Shin said in a note to clients that its recent quarterly results "helped settled some nerves in a volatile macro backdrop."
The drug giant rejoined the prestigious IBD Leaderboard list of top stocks last week as it bullishly reclaimed its 50-day and 10-week moving averages following earnings. The relative strength line also is spiking. Investors may prefer to wait to see if the stock can form a base.
Eli Lilly holds a best-possible IBD Composite Rating of 99 and is in the top 6% of issues in terms of price performance over the past 12 months.
1:43 p.m. ET
AI Stock Monday.com Pops
One stock that rose with conviction on the stock market today was Monday.com.
Shares surged after the company reported strong second-quarter results. Earnings popped 129% to 94 cents as revenue climbed 34% to $236.1 million. This was better than Wall Street expected.
The firm also guided for revenue of $245 million in the current quarter. This was higher than analyst estimates for $243 million.
The project management software maker competes with the likes of Asana and Smartsheet.
Monday.com stock jumped more than 11% in recent action. It gapped through the 50-day moving average but has suffered from choppy action of late. It holds an IBD Composite Rating of 93 out of 99.
12:15 p.m. ET
Stock Market Today: Three Stocks Eye Entries
With the stock market trying to fight its way out of a sharp pullback it is a good time to find stocks showing relative strength near potential entries. Here are a few potential candidates.
Defense contractor General Dynamics has formed a flat base with an ideal entry point of 302.75. The relative strength line has been moving higher of late. Overall excellent performance is reflected in its IBD Composite Rating of 98 out of 99.
W.R. Berkley has formed a flat base, which can also be interpreted as a saucer base, with an ideal buy point of 59.46. It would be actionable as high as 62.43 if it breaks out. This is a second-stage pattern for the insurance play, which still counts as early.
Earnings performance is a key driver for the firm, with its EPS Rating coming in at 98 out of 99. Price performance is no slouch either, with the stock among the top 15% of issues in terms of price performance over the past 12 months.
Medical stock DaVita has also formed a flat base with a buy point at 147.93.
DaVita operates dialysis centers, which treat patients with chronic kidney disease. Earnings have risen by an average 54% over the past three quarters.
Inflation Outlook Falls, Debt Fears Rise
Meanwhile, a new reading showed that consumer confidence is improving regarding inflation.
According to the New York Fed's Survey of Consumer Expectations the three-year inflation outlook has dipped to 2.3%. This was its lowest reading to date, with the data set going back as far as June 2013.
However consumers' delinquency fears also surged, as the average likelihood Americans will miss a minimum debt payment in the next three months rose to 13.3%. This was the highest level since April 2020.
10:40 a.m. ET
Stock Market Today: Regional Bank KeyCorp Pops On Deal
Regional banks gave back much of their recent gains amid a broad pullback.
But KeyCorp, which operates through its KeyBank subsidiary, scored a double digit gain after the Bank of Nova Scotia agreed to take a minority stake in the company. Scotiabank is to purchase 14.9% of KeyCorp's stock in return for a cash injection of about $2.8 billion.
Key stock gapped up away from it 50-day moving average and is now well clear of an old buy point of 15.61, MarketSurge analysis shows.
KeyCorp is on pace for its biggest largest increase since Nov. 9, 2020, according to Dow Jones Market Data. On that day it surged 18.6%
Magnificent Seven: Bullish Calls For Nvidia, Apple
The so-called Magnificent Seven group of stocks were mostly negative in early trading, but there were a couple of exceptions.
Nvidia rose more than 2% after UBS reiterated the stock as a buy and held its price target at the 150 level. Nevertheless, the Leaderboard stock remains nearly 11% below its 50-day moving average.
Apple stock was up less than 1% after Wedbush reiterated an outperform rating with a price target of 285. Analyst Dan Ives said in a note to clients that recent Asia checks are giving him "more confidence this upgrade cycle will kick off a long awaited renaissance of growth" for the company over the next year. He also touted potential benefits from AI.
Amazon.com was also slightly positive. Google parent Alphabet, Microsoft and Facebook parent Meta Platforms all fell slightly.
Tesla was lagging the most out of the select group of stocks as it fell around 1.4%.
Please follow Michael Larkin on X, formerly known as Twitter, at @IBD_MLarkin for more analysis of growth stocks.
