The Dow Jones Industrial Average and other major indexes climbed Monday as Walt Disney popped. Bitcoin dropped after news emerged that regulators plan to sue Robinhood Markets over its cryptocurrency unit. And Tesla Chief Executive Elon Musk told Berkshire Hathaway's Warren Buffett to invest in a new stock.
Stocks worked to build off last week's gains in afternoon trading, though volume was underwhelming according to early data. The Dow Jones Industrial Average rose more than 170 points for a gain of 0.5%.
The Nasdaq composite rose 1.2%. Micron Technology was a top performer, rallying 4.7% and pulling away from its short-term moving averages, MarketSurge data shows. In addition, Leaderboard stock Nvidia impressed with a gain of 3.8%.
Further, the S&P 500 added 1%. Artificial intelligence stock Super Micro Computer stood out more as it vaulted 6.1%. Tyson Foods fell 5.7% after the company beat views on earnings, but revenue came up short. Tyson stock flashed a sell signal by undercutting the 50-day moving average in heavy volume.
The S&P 500 sectors were mostly positive. Technology and communications services fared best. Only consumer staples and real estate stocks were in negative territory.
Small-cap stocks outperformed, with the Russell 2000 closing the day up 1.2%. The Innovator IBD 50 exchange traded fund gained 1.7% on the stock market today.
Dow Jones Today: Walt Disney Pops, Earnings Loom
Walt Disney fared best on the Dow Jones today. It closed 2.5% higher. It was boosted after Deutsche Bank reiterated the stock as a buy heading into Tuesday's earnings report, which comes before the market opens.
Among Dow Jones stocks, Apple fell nearly 1% even though Morgan Stanley reiterated its overweight rating, touting services growth at the company. Still, Apple stock is holding above its 200-day line, as well as the rest of its moving averages, following last week's post-earnings rally.
Boeing reversed lower and ended the session down 0.8% But Amgen fared worst on the Dow Jones today as it fell 3.8%. It backed off after Friday's strong gain of 11.8% but remains above its moving averages.
Stock Market Today: Warren Buffett Stock Gains
Arguably the ultimate Warren Buffett stock, Berkshire Hathaway briefly reversed into negative territory after turning in an earnings beat over the weekend. However, it swung back and turned in a gain of 1%.
Berkshire operating earnings jumped 39% to $11.222 billion. Total net income, which includes investment gains or losses, plunged 64% to $12.702 billion. This was a smaller decline than analysts feared.
Berkshire's cash swelled to a fresh record of $188.99 billion. The firm also bought back $2.6 billion worth of its own shares.
Berkshire stock continues to build a flat base with an ideal buy point of 430, according to MarketSurge chart analysis. An alternative entry exists at 424.52.
Buffett disclosed the firm had sold its entire stake in Paramount Global at a loss. The firm owned 63.3 million Paramount Class B shares at the end of 2023. The news did not faze Paramount, which rose 3.1% on the stock market today.
Paramount rose amid reports the firm has entered formal merger negotiations with a set of companies led by Sony Group's Sony Pictures Entertainment and Apollo Global Management. This is competing with a rival proposal from Skydance Media, which is led by Oracle founder Larry Ellison's son, David Ellison.
Elon Musk Tells Warren Buffett To Buy Tesla Stock
One man who seems to have his eye on Warren Buffett's bumper crop of cash is Tesla CEO Elon Musk.
"He should take a position in Tesla," Musk wrote on his social media platform X. "It's an obvious move."
He spoke out after a user suggested that Buffett sells all his Apple stock and instead reinvests it in the electric vehicle play.
Tesla ended the session up 2%. It now sits above the key 50-day moving average but remains marooned below its 200-day line.
It also holds an EPS Rating of 62 out of 99 and does not pay a dividend yield. Both of these features means it is unlikely to meet Buffett's stringent investment requirements.
Bitcoin Dips, Robinhood Stock Slips After SEC Legal Move
Bitcoin fell more than 1% Monday, according to CoinDesk. It now trades for just over $63,000 per token. The move comes after the Wall Street Journal reported the Securities and Exchange Commission is looking to sue Robinhood Markets over its cryptocurrency unit.
Robinhood received a so-called "Wells Notice" from the SEC staff over the weekend. The regulator has made a "preliminary determination" to recommend an enforcement action against the Robinhood Crypto unit over alleged violations of securities laws.
"We firmly believe that the assets listed on our platform are not securities and we look forward to engaging with the SEC to make clear just how weak any case against Robinhood Crypto would be on both the facts and the law," Robinhood Chief Legal Officer Dan Gallagher said in a company blog post.
Robinhood stock reversed lower Monday, falling more than 1%. Among other bitcoin-related stocks, Coinbase Global rose 1.7%, while the ARK 21Shares Bitcoin ETF gained 1.8%.
Meanwhile, cryptocurrency miner Marathon Digital soared 18%. It looked to clear its 50-day moving average in the process.
Stock Market Today: IBD Industry Groups
Investor's Business Daily industry groups offered a different perspective on the trading action.
Dairy product stocks, database software plays, data storage companies, computer hardware firms and cable stocks were among the strongest areas.
In contrast, coal stocks, metal products distributors, meat products firms, steel producers and drugstores all underperformed on the stock market today.
These Stocks Clear Early-Stage Bases
The recent market pullback gave some stocks an opportunity to build some bullish patterns. Arlo Technologies cleared a cup base with an ideal buy point of 13.34, MarketSurge analysis shows.
This is a first-stage pattern, which means it is more likely to net big gains. However, the company's earnings report is imminent, which presents a risk to buying before the results are announced. Price and earnings performances are both solid for the security software play.
Government and military contractor Booz Allen Hamilton has cleared a flat-base entry of 150.59. This is also an early-stage base. Overall performance is strong, reflected in the stock's IBD Composite Rating of 94.
Tradeweb Markets is testing a first-stage flat-base buy point of 108.84. Tradeweb has a near-perfect Composite Rating of 97 and reported earnings last week.
Please follow Michael Larkin on X, formerly known as Twitter, at @IBD_MLarkin for more analysis of growth stocks.
