The Dow Jones Industrial Average fell even as Microsoft rallied. Nvidia retook a key level amid a slew of bullish analyst calls. A trio of Warren Buffett stocks, including Visa, are eying entries.
Meanwhile, three other noteworthy stocks are building bases amid the stock market correction. Option Care Health, Automatic Data Processing and Dick's Sporting Goods are all trading near potential buy points.
Treasury yields rose. The 10-year yield jumped 9 basis point to 4.34%, while the two-year yield rose 6 basis points to 5%. The yield curve remains inverted.
"Stocks are going to have a hard time if real yields continue to rally," Oanda Senior Market Analyst Edward Moya said in a note to clients.
Nasdaq Jumps As Small Caps Fight Back
The tech-heavy Nasdaq outperformed, closing near session highs as it jumped 1.6%, snapping a four-day losing streak. Moderna was a top performer here as it popped 9.3%. It rose after a Biden administration official urged people to get booster shots this fall, with the firm previously reporting that its updated vaccines produce a robust immune response.
The benchmark S&P 500 squeezed out a more modest gain of 0.7%. Tesla shined here as it jumped 7.3%.
The S&P 500 sectors were mixed. Technology and consumer discretionary fared best in the stock market today. Consumer staples and real estate lagged.
Small caps managed to fight their way out of negative territory, with the Russell 2000 closing flat. But growth stocks reversed higher, with the Innovator IBD 50 ETF closing up 0.6%.
Dow Jones Today: Apple Stock, Microsoft Excel
The Dow Jones Industrial Average closed well off its lows for the day but gave up 37 points, or 0.1%. It remains below the key 50-day moving average.
The index was boosted after Microsoft stock jumped 1.7%. Despite this, MSFT also remains below its 50-day moving average, MarketSmith analysis shows.
Salesforce was the top performer on the Dow Jones today as it rose 2.1%. Apple and Intel also did well, rising 0.7% and 1.2% respectively.
Johnson & Johnson lagged the most on the blue-chip index as it fell 3%. Nike also struggled, shedding 1.9%.
3 Warren Buffett Stocks Eye Buy Points
Many investors are keen to find opportunities in stocks owned by smart investors, and few are more feted than Berkshire Hathaway CEO Warren Buffett.
A number of stocks in the Oracle of Omaha's company are currently eyeing new entries.
Payment processor Visa is already actionable after clearing a flat-base buy point of 235.57. In addition, Visa stock has also forged a new flat base on its weekly chart, which offers another, higher, official buy point of 245.37.
All-around performance here is strong, with Visa's IBD Composite Rating coming in at 92 out of 99.
Earnings growth is sturdy, if not perfect, with EPS rising by an average of 15.4% over the past three quarters.
Professional services stock Aon has formed a flat base with an ideal buy point of 347.37. It has work to do after slipping back under its 50-day moving average.
Aon focuses on risk management, retirement and health care services. All-around solid performance has earned it a Composite Rating of 88 out of 99.
Nvidia Stock Rockets Amid Wall Street Calls
NVDA stock rocketed into the close Monday after it was the subject of some bullish analyst calls.
It was boosted after Baird named the stock as a top pick, while HSBC and KeyBanc issued price-target hikes. HSBC upped its target to 780 from 600, while KeyBanc raised its PT to 620 from 550.
NVDA stock built on early gains as it closed up 8.5%, clearing its 50-day moving average in the process. Nvidia is a member of the prestigious IBD Leaderboard list of top stocks.
It is a big week for the chip giant, with results due Wednesday after the close. The stock has been boosted by exuberance over AI, and a positive report could drive shares higher once again after a recent pullback.
Palo Alto Networks Stock Soars
Palo Alto Networks roared higher Monday despite a mixed earnings report late Friday.
Q4 earnings soared 80%, the third straight quarter it had turned in 80% growth or higher.
Revenue climbed 26% year-over-year to $1.95 billion but fell short of analyst expectations for $1.96 billion.
Guidance was key here, with the firm projecting a compound annual growth rate for revenue of 18% at the midpoint of its range.
This saw Evercore ISI analyst Peter Levine, who rates the stock as overweight, hike his target price to 295 from 240.
PANW stock rocketed through the 50-day moving average and ended the day with a meaty 14.8% gain.
Outside Dow Jones: These Stocks Build Bases
With the stock market currently in a correction, now is the ideal time to be building your watchlist. These names are all building bases.
Option Care Health closed in on a new consolidation entry of 35.87 as it rose 1.2%. All-around strong performance has netted it an IBD Composite Rating of 90 out of 99.
Big Money has been snapping up shares, with OPCH's Accumulation/Distribution Rating strong at A-.
Automatic Data Processing has formed a cup with handle with an entry point of 256.84. The RS line is spiking.
The outsourcing and payroll services stock has a very good EPS Rating of 93. It is also in the top 21% of stocks in terms of price performance over the last 12 months.
Dick's Sporting Goods is eying a consolidation-pattern buy point of 152.61. This is a first-stage pattern, which means it is more likely to net big returns.
Earnings are due early Tuesday, which could act as a catalyst for a big move in either direction.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more analysis of growth stocks.
