The Dow Jones Industrial Average and other indexes finished with a flourish Monday as stocks built momentum heading into the close. Trump Media & Technology undercut a key level while Nvidia and Apple were the subject of Wall Street calls. And a trio of Warren Buffett stocks, including American Express, traded near buy points on the stock market today.
The Dow jumped 237 points, or 0.6%, as it made a last-minute jump. The blue-chip index is now well clear of its short-term moving averages as well as its 50-day line.
The Nasdaq composite also charged higher in the final minutes of trading and finished its eighth-straight rally with a gain of 1.4%. Palo Alto Networks, which reports earnings after the close, was a solid performer here as it surged nearly 3%. Moderna did even better with a lift of nearly 4%, but it remains below its major moving averages.
Starbucks was a laggard on the tech-heavy Nasdaq, falling nearly 3%. CDW also struggled, dropping nearly 2%.
The S&P 500 joined the party as well, making a last-minute surge. It finished 1% higher, and completed its eighth-straight gain. Estee Lauder sank more than 2% after the company reported disappointing first-quarter earnings and announced that Chief Executive Fabrizio Freda will retire. Its rival, new Warren Buffett holding Ulta Beauty, saw early gains fade and lost a fraction at the close.
Stock Market Today: Small Caps Shine
All S&P 500 sectors were positive. Consumer discretionary and communication services fared best, while real estate and utilities made the smallest gains.
Volume was mixed despite the positive action. It was higher on the Nasdaq vs. the same time on Friday whereas it was lower on the New York Stock Exchange.
Small caps shined, with the Russell 2000 up 1%. Growth stocks also outperformed, with the Innovator IBD 50 exchange traded fund up 1.5%.
3:28 p.m. ET
Donald Trump Stock Undercuts Key Level
Trump Media has steadily declined in recent weeks. Shares came under even more pressure heading into the close on Monday.
The stock tumbled more than 3% in late trade. It now sits below its major and shorter-term moving averages, according to MarketSurge analysis.
Trump Media also looks set to close below the 22.85 closing low from April 16. This would make for its lowest close since the merger with Digital World Acquisition on March 26. Further, it already is on its longest losing streak since the merger.
The firm is owned primarily by former President Donald Trump, and has suffered heavy losses in recent quarters.
In the most recent quarter, the company posted another quarterly loss — this time of 12 cents per share. The Truth Social parent lost $2.42 per share in the previous quarter and seven cents per share the quarter before that.
Trump Media has plummeted nearly 72% since hitting a March 26 high of 79.38. It lost more than 28% of its value over the past four weeks alone. Even taking all of this into account, it remains up nearly 29% since the start of the year.
Nevertheless, its pitiful performance is reflected in its dire IBD Composite Rating of 5 out of a best-possible score of 99.
1:57 p.m. ET
Bill Ackman Stock Is In A Buy Zone
Billionaire hedge fund manager Bill Ackman has a well-earned reputation as a stock picker. One of the holdings of his firm Pershing Square Capital Management has rallied back into a buy zone amid recent positive action.
Financial services play Brookfield now trades above a cup-base entry of 45.11. It got support at the 50-day line during the recent market pullback.
While it is in the top 13% of issues in terms of price performance over the past 12 months, its EPS Rating of 11 is poor. Despite this, Ackman is not the only noteworthy backer. The feted Fidelity Contrafund (FCNTX) also has a position in the stock.
Brookfield has seen rising institutional sponsorship of late, with its Accumulation/Distribution Rating coming in at B+.
Stock Market Today: GM Nears Key Benchmark Amid Layoffs
General Motors stock rallied amid news it plans to lay off more than 1,000 software and services employees.
This tranche of employees represents about 1.3% of the firm's worldwide salaried workforce. It comes as auto firms seek to reduce costs amid fears over a potential recession.
Auto stocks are cyclical, which means they tend to suffer more during economically tough times. GM stock rallied nearly 1% on the stock market today. It is now closing in on its 50-day moving average, an important technical benchmark.
The stock has been a winner so far this year, rallying more than 27%. This beats the benchmark S&P 500's gain.
12:15 p.m. ET
U.S. Leading Indicators Fall But Note Silver Lining
The Conference Board said Monday that the U.S. leading indicators index fell by 0.6% in July to 100.4. Economists had expected a 0.3% decline, according to Econoday.
The index is designed to predict turning points in the economy, including recessions and recoveries. It is a composite of 10 components, including new factory orders and unemployment claims.
"LEI continues to fall on a month-over-month basis, but the six-month annual growth rate no longer signals recession ahead," said Justyna Zabinska-La Monica, senior manager overseeing the Conference Board's business cycle indicators, in a written statement.
Stock Market Today: Bank Play Tests Buy Point
Breakouts were thin on the ground Monday, despite the improving technical picture for indexes.
One issue that was trying to clear an entry was Bank of New York Mellon.
The stock tested a flat-base entry of 65.91, MarketSurge analysis shows. However it has slipped back below the buy point. This is a first-stage base for the stock. Earlier bases are more likely to result in good gains. The stock is in the top 10% of issues in terms of price performance over the past 12 months.
Overall solid performance has earned it an IBD Composite Rating of 88 out of 99. Earnings growth lags the levels sought under the IBD Investing Methodology, however.
Nevertheless, the stock has rallied by nearly 26% so far in 2024. Analysts see earnings rising 10% in 2024 before popping another 12% in 2025.
10:50 a.m. ET
Three Warren Buffett Stocks Near Buy Points
There are few investors more feted than Berkshire Hathaway Chief Executive Buffett. A few stocks held by the value investing titan's firm hit new entry points Monday.
American Express stock trades in a buy zone above a flat base entry of 244.41, MarketSurge analysis shows. Overall strong performance is reflected in its IBD Composite Rating of 92 out of 99. Berkshire owns 151,610,700 shares in the payments giant.
DaVita is trading in an actionable zone above a flat base buy point of 147.93. It sits clear of all its moving averages, a bullish look.
The firm provides kidney dialysis services through a network of almost 3,000 U.S. outpatient centers. Berkshire owns 43% of its shares outstanding. DaVita is also a member of the IBD Leaderboard list of top stocks.
Homebuilder stock Lennar currently trades in a buy zone above a double-bottom base entry of 171.27. This is a first-stage base, a bonus.
This is a relatively minor holding for Buffett, with Berkshire holding about $25 million in shares. With the prospect of a Fed rate cut on the horizon, the environment could become more conducive to homebuilder stocks.
IBD recommends buying stocks with strong earnings and price performance. Look for leaders in strong industries that are showing superior earnings growth and sales, such as those in the IBD 50.
Stock Market Today: AMD Stock Up Amid $4.9 Billion Deal
Nvidia has been the undoubted leader in the chip space in 2024, leaving rivals such as Advanced Micro Devices in the dust.
But AMD moved higher Monday amid news it has signed a definitive agreement to acquire ZT Systems for $4.9 billion in cash and stock. CEO Lisa Su said the purchase of the privately held company will help her firm as it pursues its own artificial intelligence strategy.
"Very excited to announce we have signed an agreement to acquire leading hyperscale solutions provider ZT Systems," she said on X. "Next major step in our AI strategy combining our silicon, software and ZT's world class systems expertise to enable rapid deployment of AMD AI solutions at scale for our cloud and enterprise customers."
AMD stock popped on the stock market today, rising about 3%. However, it remains below the 50-day and 200-day moving averages, according to MarketSurge analysis.
Magnificent Seven: Nvidia Dips Despite Bullish Call
The so-called Magnificent Seven group of stocks were mixed in early trading.
Tesla was faring best as it rose nearly 2%. It is back above all of its moving averages.
Google parent Alphabet rose more than 1%. It remains rooted below its 50-day moving average, however. Amazon.com fell fractionally.
Nvidia rose slightly after Goldman Sachs reiterated a buy rating and held a 135 target on the stock heading into next week's earnings report. Analyst Toshiya Hari believes "customer demand across large cloud service providers and enterprises is strong."
The Leaderboard stock remains above its 50-day moving average after clearing the important level last week.
Apple stock was down more than 1% after KeyBanc reiterated its sector weight rating on the stock, citing concerns "that there will not be a large increase in upgrade rates" even with the launch of the iPhone 16 in September.
Facebook parent Meta Platforms and Microsoft each fell slightly.
Please follow Michael Larkin on X, formerly known as Twitter, at @IBD_MLarkin for more analysis of growth stocks.
