The Dow Jones Industrial Average gained but lagged the surging Nasdaq. Twitter exploded on news that Tesla owner Elon Musk has snapped up shares. Meanwhile, the Donald Trump SPAC Digital World Acquisition plummeted.
Apple, Microsoft and Intel were among the top blue chips. China stocks such as Alibaba also jumped.
A trio of stocks are eyeing buy points. Synopsys, Laredo Petroleum and Kimco Realty have all crafted bullish bases.
Volume was lower on the New York Stock Exchange and the Nasdaq compared to the same time Friday.
Meanwhile, the yield on the benchmark 10-year Treasury note rose three basis points to 2.4%. Oil rose sharply, with West Texas Intermediate crude jumping 4% to more than $103 per barrel.
Nasdaq Gains As Tech Stocks Flex
The Nasdaq fared best out of the major indexes, rising almost 2%. Outside of China stocks, Okta fared best with a gain of almost 8%.
The S&P 500 battled to a gain of around 0.7%. Etsy was among the top performers here as it popped nearly 9%.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 34916.08 | +97.81 | +0.28 |
| S&P 500 | (0S&P5) | 4577.13 | +31.27 | +0.69 |
| Nasdaq | (0NDQC ) | 14507.54 | +246.04 | +1.73 |
| Russell 2000 | 207.99 | +0.42 | +0.20 | |
| IBD 50 | 39.23 | +0.23 | +0.59 | |
Last Update: 3:00 PM ET 4/4/2022 |
||||
A majority of the S&P sectors were actually in the red. Technology, consumer discretionary and communication services were leading. Health and utilities were the worst laggards.
Small caps were lagging the major indexes, with the Russell 2000 making a gain of 0.2%.
Growth stocks were getting stronger heading into the close. The Innovator IBD 50 ETF, a bellwether for growth stocks, rose 0.6%.
Dow Jones Gains As Apple Stock, Microsoft Pop
The Dow Jones Industrial Average also managed to squeeze out a gain. It was up 0.3%.
Apple stock was one of the best performers as it rose around 2%. The IBD Stock Of The Day broke out of a double-bottom base last week.
The buy point is 176.75, according to IBD MarketSmith charts, though it could now be forming a handle.
Leaderboard stock Microsoft also did well as it turned in a gain of nearly 2%. Chip play Intel was up around 2%.
But it was Salesforce.com that fared best of all as it rose nearly 4%.
Twitter Stock Explodes As Elon Musk Invests
Twitter stock erupted on the news Elon Musk is now the company's biggest shareholder. It surged almost 30%.
In an SEC filing Monday, Musk reported owning about 73.5 million shares of Twitter. The stake is valued at $2.89 billion as of Friday's closing price.
Elon Musk is now the largest shareholder, owning more stock than the firm's famous founder Jack Dorsey.
The Tesla executive is one of the most influential users of the website. Just a few weeks ago he lashed the company on the platform and polled followers on whether it protects free speech.
"Given that Twitter serves as the de facto public town square, failing to adhere to free speech principles fundamentally undermines democracy," he tweeted. "What should be done?"
Nevertheless, Musk's position is currently being classified as a passive stake.
Tesla Stock Surges On Delivery Data
Meanwhile, Tesla stock surged after opening lower following the weekend release of new delivery data.
Tesla said it delivered a record 310,000 vehicles globally in the first three months of the year. That was up about 68% from the same period a year ago.
This missed some estimates. While Wall Street expected deliveries of around 309,000, some analysts predicted 317,000 in the first quarter.
Elon Musk said in a Tweet it was an "exceptionally" difficult quarter due to supply chain issues and Covid policies in China.
The stock was up nearly 6%, though middling volume was not ideal. It is continuing to build the right side of a cup base.
Tesla is a member of the prestigious IBD Leaderboard list of leading stocks.
Donald Trump SPAC Dives
In contrast to the positive action at Twitter, Digital World Acquisition, the SPAC that plans to host Donald Trump's social media site, plunged.
In addition to competing with Twitter, it was forced lower amid reports that executives at the social networking site Truth Social have quit.
Reuters reported head of technology Josh Adams and product development chief Billy Boozer have both stepped down. It is unknown whether they have been assigned other roles in the company.
Truth Social has suffered from hiccups since launching, with more than a million users still on a waiting list as the platform struggles to become fully operational.
Trump himself has yet to use the service outside of a message that says, "Your favorite president will see you soon."
While DWAC stock has a Relative Strength Rating of 99, which puts it in the top 1% of stocks in terms of market performance over the past 12 months, it has been falling of late.
The relative strength line is dipping and it gave up about 30% last month. It now sits around 68% off its all-time high of 175, which it reached last October.
Digital World is a SPAC that launched Donald Trump's social media app, Truth Social. The app was launched to rival Twitter, which Trump and many critics say restricts free speech.
Alibaba Stock Up As China Stocks Rally
A host of China stocks were moving higher Monday despite the uncertain action in the broader market.
Alibaba, often called the Amazon of China, jumped around 6%.
The stock has now fought its way back above its 50-day line but remains rooted below the 200-day moving average.
Fellow e-commerce play Pinduoduo was one of the top stocks on the Nasdaq as it popped 15%. Baidu also fared well, rising more than 8%.
These Three Stocks Eye Entries
Chip design software firm Synopsys is building a new cup base with an ideal entry point of 377.70, according to MarketSmith analysis. A handle could also form soon, which would offer a lower entry.
The stock boasts top-notch all-around performance, including a superior EPS Rating of 93 out of 99. Analysts see steady earnings growth of 16% in 2022 and 16% in 2023 ahead.
Laredo Petroleum is trading close to its buy point of 88.40 from a cup-with-handle base. Big money has been piling in of late, with its Accumulation/Distribution Rating coming in at A-.
Energy stocks in general are continuing to impress as the Russia-Ukraine war drags on.
Kimco Realty is forming a flat base pattern with an ideal entry point of 25.72.
The stock is a double threat, offering a dividend yield of 3.1%. This is more than double the S&P 500 average of 1.3%.
The real estate investment trust specializes in shopping centers. It could benefit as shoppers return to stores as the Covid pandemic fades.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
