The Dow Jones Industrial Average moved higher on Monday while other indexes opened the week mixed. Hot artificial intelligence stocks Nvidia and Super Micro Computer sold off while Micron gained. Meanwhile, famed fund manager Cathie Wood snapped up a plunging stock while a Warren Buffett play tested an entry. And Trump Media & Technology soared on the stock market today.
The Dow Jones industrials fared best out of the major indexes on the stock market today as it rose 261 points, or 0.7%. In contrast, the tech-heavy Nasdaq composite fell 1.1% amid possible market rotation.
Nasdaq components Baker Hughes and Diamondback Energy bucked the broader index trend, however. Baker Hughes rose 4.5%, breaking out past a trendline entry around 33. Diamondback gained 3.8% and is forming a flat base.
Micron, another Nasdaq stock, ended a topsy-turvy session down 0.4% after Citi reiterated the stock is a "top pick" and boosted its price target to 175 from 150. Micron reports earnings Wednesday. Citi expects Micron to beat analyst views, partially due to "increasing AI memory exposure."
Meanwhile, the S&P 500 oscillated before closing 0.3% lower. In the S&P, Mosaic and APA outperformed. MOS rose 4.7% while APA gained 4.5%. Conversely, AI play Super Micro lagged, diving 8.7%.
Stock Market Today: Small Caps Shine, RXO Soars
Transportation and last-mile logistics firm RXO notched an eye-catching gain of 23%. It arguably cleared a messy consolidation entry of 24.33 as the October 2022 initial public offering surged in high volume.
RXO got a boost after it announced a deal to buy Coyote Logistics from UPS for more than $1 billion. Coyote Logistics generated about $3.2 billion in revenue in 2023.
This fell short of the $1.8 billion UPS paid for the firm in 2015. UPS ended the session up 1.5%.
The S&P 500 sectors ended mostly higher. Energy, utilities and financials were the strongest areas while technology and consumer discretionary lagged heading into the final hour of trading.
Small caps ended off highs for the day, but the Russell 2000 still rose 0.7%. The Innovator IBD 50 ETF reversed lower, falling 0.8% on the stock market today.
Nvidia Stock Seeks Support Amid 16% Fall
Fans of Greek mythology will know that Icarus took a fateful plunge after flying too close to the sun. And Nvidia stock owners will be suffering a similar feeling to the plucky hero of yore as the stock continues to fall from recent highs.
While its decline of more than 16% from its high of 140.76 seems a mere blip on its monthly chart, it remains painful for those who bought at the top.
The stock, which was down nearly 7% on the stock market today, is currently testing support at the 21-day exponential moving average.
Nvidia remains a member of the prestigious IBD Leaderboard list of top stocks, but it has been hedged with a position in the Tradr 1.25X NVDA Bear Daily exchange traded fund. This returns 1.25 times the inverse daily performance of Nvidia.
Updated 2:57 p.m. ET
DJT Soars But Is Donald Trump Stock Great Again?
One highly followed stock that was making a monster move today was Trump Media & Technology.
The ultimate Donald Trump stock was up more than 22%, albeit off session highs. The move allowed it to retake its 200-day moving average, MarketSurge analysis shows.
It was rallying after the firm said that it expects to receive around $70 million in proceeds from the cash exercise of warrants on Thursday and Friday.
But one day of sharp upward motion is not enough to make a stock a good buy. There are a few red flags. First of all, the stock has a dreadful EPS Rating of 3 out of 99, with the stock losing 43 cents per share in 2023. The stock also remains under its 50-day line.
Additionally, the Truth Social parent remains down nearly 57% from its March 26 high of 79.38. Finally, institutional support is almost nonexistent, with just 1% of shares being held by funds, according to MarketSurge data.
Updated 1:40 p.m. ET
Bitcoin Falls, ResMed Dives
Bitcoin was down nearly 6% and is testing the $60,000 per coin level, according to CoinDesk. At its low, it was trading for $59,847.04. Bulls will be keen to see it finds support at the psychologically important $60,000 level.
The price of the digital currency has reversed sharply from highs for the year. It is down about 18% from its high for the year of $73,737.94, which it hit back in March.
ResMed dropped more than 11% amid fears Eli Lilly's obesity medicine could shake up the sleep apnea space. ResMed makes CPAP and other breathing equipment.
On Friday, Eli Lilly said its tirzepatide medicine reduced obstructive sleep apnea severity by up to 62.8%. ResMed sells CPAP machines that treat sleep apnea.
Updated 12:05 p.m. ET
Stock Market Today: More Stocks Break Out, One Rockets
Elsewhere, Hartford Financial is in a buy zone after moving back above a second-stage entry of 103.64 out of a flat base, according to MarketSurge analysis.
Earnings are a key strength, with the diversified insurer having an Earnings Per Share Rating of 96 out of a possible 99. It is in the top 10% of stocks in terms of price performance over the past 12 months into the bargain.
Alnylam Pharmaceuticals is well extended after gapping clear of a consolidation pattern entry of 199.38.
Shares rocketed Monday after experimental heart-disease treatment vutrisiran topped expectations in a highly anticipated study.
It helped patients with ATTR amyloidosis with cardiomyopathy, a disease where abnormal protein builds up on the heart and causes damage. Vutrisiran reduced death for any reason by 36%.
Hercules Capital is in a buy zone after surpassing a flat base entry of 20.01. Overall strong performance has netted it an IBD Composite Rating of 99.
Updated 10:52 p.m. ET
Dow Jones Today: Boeing Steady Despite DOJ Fears
Boeing stock rallied about 2% despite reports that prosecutors have recommended the Department of Justice bring criminal charges against the aerospace giant.
Justice officials claimed last month that Boeing violated a settlement related to two fatal crashes involving its 737 Max aircraft. Boeing is trading above its 50-day moving average but below the 200-day line.
IBM was actually faring best on the Dow Jones today, rising more than 2%. It was followed by Goldman Sachs, Caterpillar and Chevron.
Intel and Salesforce lagged, but were limited to declines of less than 1% each.
Stock Market Today: Cathie Wood Buys Roku Amid Plunge
Sometimes big-name investors will go where the average trader fears to tread. That was the case with Ark Invest Chief Executive Cathie Wood, who snapped up more Roku stock on Friday.
The firm's flagship ARK Innovation exchange traded fund bought more than 48,000 shares in the streaming device play.
Roku stock is currently below its key 50-day and 200-day moving averages, MarketSurge analysis shows. This underlines its weakness. Earnings are also not ideal.
Since hitting a recent high of 108.84 in December, the stock has been in reverse gear. At Friday's close it was down slightly more than 50% from that level.
Investor's Business Daily recommends buying stocks with strong earnings and price performance, something Roku lacks at the moment. Look for leaders in strong industries that are showing superior earnings growth and sales.
Nasdaq Leads As Nvidia Roars; FedEx, Rivan Spike
Outside Dow Jones: 3 Stocks Near Entries
There were a few stocks trading near buy points in early action on the stock market today.
Brazilian digital bank play Nu Holdings cleared a flat base entry of 12.59, according to MarketSurge analysis. The move came in high volume.
The stock has a best-possible IBD Composite Rating of 99. Earnings have grown an average 294% over the past three quarters. Warren Buffett is a backer of the stock, with his firm Berkshire Hathaway owning shares.
Elsewhere, Meta Platforms is homing in on a cup-with-handle buy point of 514.01. This is a midstage base.
Overall performance is very good, which is reflected in Meta's near-perfect IBD Composite Rating of 98. Meta stock is a member of the IBD Tech Leaders list. Roughly 48% of its stock is currently held by funds, according to MarketSurge data.
Further, insurance stock Manulife Financial is nearing a weekly chart flat-base entry of 26.81 on the stock market today. Overall performance is excellent, netting the stock an IBD Composite Rating of 97.
Please follow Michael Larkin on X, formerly known as Twitter, at @IBD_MLarkin for more analysis of growth stocks.
