The Dow Jones Industrial Average vaulted even as key component Apple extended losses. Tesla tumbled amid a managerial change. A trio of Warren Buffett stocks are near entries after Berkshire Hathaway jumped on earnings.
While the stock market uptrend is currently under pressure, now's a good time to add to one's watchlist. MercadoLibre, Inter Parfums and Bank Ozk are all near buy points.
Treasury yields were mostly higher. The 10-year yield rose 3 basis points to 4.09% while the two-year yield slipped 1 basis point to 4.78%. The yield curve remains inverted.
Nasdaq Inches Higher As Small Caps Struggle
The tech-heavy Nasdaq lagged the other major indexes but still closed up 0.6%. Booking Holdings shined here with a lift of 5.9%. It is extended past a 2,786.85 entry, MarketSmith analysis shows.
The benchmark S&P 500 fared better with a 0.9% lift. Energy drink stock Monster Beverage lived up to its moniker with a powerful gain of 6.1%.
The S&P 500 sectors were mostly positive. Communication services, financials and industrials were the top performers. Utilities was the only sector to finish in the red in the stock market today.
Small caps struggled to make headway, with the Russell 2000 rising 0.1%. Growth stocks impressed by reversing higher, with the Innovator IBD 50 ETF rising 0.4%.
Dow Jones Today: Index Gains As Apple Stock Crumbles
The Dow Jones outshined the other indexes as it turned in a gain of 408 points, or 1.2%. The blue-chip index fared well despite more selling in key component Apple.
AAPL stock ended the day down 1.7%, though it managed to clamber off session lows.
Apple stock flashed a sell signal after it sank below its 50-day moving average Friday. Nevertheless, the tech powerhouse remains up 43% so far in 2023.
Amgen was the top performer on the Dow Jones today as it jumped 4%. Boeing also fared well with a 3% lift. BA stock is extended past a 223.91 buy point.
3 Buffett Stocks Near Entries As Berkshire Pops
All eyes were on Berkshire Hathaway earnings over the weekend. BRKB stock ended Monday up 3.6% following the company's strong report.
Berkshire Hathaway earnings rose 8% to $4.62 as revenue jumped 21% to $92.5 billion. Analysts had expected Berkshire earnings to fall 8% vs. a year earlier to $3.87 a share, with revenue up nearly 6% to $80.58 billion.
In addition, the firm, led by legendary investor Warren Buffett, saw its cash pile grow to a gargantuan $147.38 billion at the end of June, almost a record for the firm.
BRKB stock is currently extended past a 331.84 buy point, according to MarketSmith analysis.
However a trio of alternative Warren Buffett stocks are currently near entries. These stocks are part of Berkshire Hathaway's stock portfolio.
Charter Communications is trading in a buy zone above a saucer entry of 415.29. But the IBD Composite Rating of 82 is below ideal levels.
Insurance play Globe Life tested a cup-with-handle entry of 115.49, closing just below the buy point. Earnings are the key strength here, with GL stock's EPS Rating an 80 out of 99.
And Visa is in a buy zone after clearing a flat-base buy point of 235.57. Visa has also forged a three-weeks-tight pattern within the buy zone, which offers an official 245.37 entry. Earnings growth is sturdy, if not ideal, with EPS rising by an average 15.4% over the past three quarters.
Tesla Stock Dips As CFO Quits
Tesla stock was punished after a senior managerial change was announced. Chief Financial Officer Zachary Kirkhorn is stepping down after four years on the job. He will remain at Tesla through the end of the year.
The firm's chief accounting officer, Vaibhav Taneja, is taking over as the new CFO.
Tesla stock closed down 1%, off session lows but still finishing below the 50-day moving average in muted volume. Shares are down around 16% from recent highs since the electric-vehicle maker reported second-quarter earnings on July 19.
Even with these recent declines, TSLA stock is up almost 133% so far in 2023. It is a member of the prestigious IBD Leaderboard list of top stocks.
Outside The Dow Jones
Now is a good time to look for stocks eyeing new buy points to add to one's stock market watchlist. Here are a few potential candidates.
Latin America e-commerce play MercadoLibre is just below the buy zone after briefly clearing a cup-base entry point of 1,365.64 Monday. The relative strength line is gathering power.
Strong overall performance has netted it an IBD Composite Rating of 94. The company recently reported that Q2 profit rocketed $112% to $5.16 per share as revenue jumped 31% to $3.42 billion.
Inter Parfums is eyeing a cup-with-handle entry of 152.29. It is in the top 7% of stocks in terms of price performance over the past 12 months. Earnings are a key strength here, which is reflected in IPAR stock's near-perfect EPS Rating of 97.
Bank Ozk is benefiting from improving conditions for regional bank stocks. It is just below a cup-with-handle entry of 44.80.
This is a first-stage base, which means it has a better chance of success than later-stage ones. All-around excellent performance has earned OZK stock a Composite Rating of 97.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more analysis of growth stocks.
