The stock market posted small gains in Monday's session. Big Tech led while the Dow Jones Industrial Average lagged. Investors awaited an important 5:30 p.m. ET meeting between President Joe Biden and House Speaker Kevin McCarthy on the debt ceiling. DraftKings soared to the highest price since January 2022 after an upgrade.
The political opponents spoke Sunday on the debt ceiling and agreed to meet Monday afternoon. Both parties said the conversation was positive. Time is ticking as the June 1 deadline approaches. The Treasury is set to run out money to pay certain obligations if no agreement is reached.
The Dow Jones Industrial Average inched 0.3% lower while the Nasdaq added 0.5%. The S&P 500 notched up 0.1%. The Russell 2000 fared better, adding back 1.3%.
NYSE volume fell while Nasdaq volume rose vs. the same time on Friday.
The Nasdaq 100-tracking Invesco QQQ Trust ETF gained 0.4%. The Innovator IBD 50 ETF held up better than the major indexes, climbing 1.2%.
Crude oil rose 1% higher to $72.41 per barrel. Gold futures edged down 0.2% and remain below the psychological $2,000 level. Bitcoin notched lower 0.2% to $26,840.
The 10-year U.S. Treasury yield added 2 basis points to 3.71%. The CME FedWatch tool shows over 70% odds for no rate hike at the June Fed meeting. The remainder expect a quarter-point hike.
European stocks were mixed with the German DAX down 0.3% and Paris CAC dropping 0.2%. The London FTSE inching up 0.2% in afternoon trading.
Keep an eye out Tuesday for Lowe's and Dick's Sporting Goods earnings, and Wednesday for retailer Kohl's.
IBD 50's DraftKings Soars On UBS Upgrade
IBD 50 member DraftKings spiked 8.8% after a UBS analyst upgraded the online sports betting and entertainment platform to buy from neutral and raised the price target to 30 from 19. The analyst sees more than 20% annual revenue growth through 2026, due to quicker state expansion and higher revenue per player.
Shares bypassed a trendline entry of 23.75 last week, and traded above the top of the 24.94 buy range.
Shares for this former meme stock are above the 5% buy zone of a cup base with a 21.72 buy point. The IBD Swing Trader stock soared 15.3% on May 5, following higher-than-expected Q1 sales and a smaller loss on May 4.
Former Meme Stock Zoom Reports After the Bell
Zoom Video Communications gained 2.7% ahead of earnings after the stock market close. The company estimates adjusted EPS of 96 to 98 cents, on revenues ranging from $1.097 to $1.102 billion.
The former meme stock reported stabilizing metrics last quarter and continued to cut costs. It holds $5 billion in cash, allowing for potential acquisitions. Investors will be listening for AI initiatives in the earnings call later today.
ZM regained the 50-day line Wednesday, but remains 43% off its 52-week high.
Micron sank 2.7% after Chinese regulators said they would ban the memory chip giant's products after it failed a security review, due to "relatively serious" cybersecurity risks.
Nvidia, which reports first-quarter fiscal 2024 earnings Wednesday, was relatively flat. Analysts expect 92 cents per share on sales of $6.5 billion for Q1.
Rival Advanced Micro Devices rose 1.7%.
Also in the IBD 50, Global-e Online fell 2.9%, and is below the buy zone of a consolidating base up to 36.67.
The Israel-based international e-commerce software platform reported higher Q1 quarter revenue and a smaller loss Friday.
Stock Market Today: Footwear Stock Loses Again
Foot Locker tanked another 7.4% in heavy volume, on top of Friday's 27.2% drop, after JPMorgan Chase and Barclays cut price targets. The footwear company posted Q1 earnings numbers and gave lower guidance on Friday.
10x Genomics advanced 3.8% and broke out of a flat base, hitting the 56.32 buy point. The relative strength line hit a 52-week high, according to MarketSmith.
The company won an injunction in its patent lawsuit against NanoString Technologies, which prohibits NanoString from selling molecular instruments and a RNA detection reagent in Germany.
10x posted a larger-than-expected Q1 loss but higher sales on May 3. 10x Genomics is a life science technology company that creates instruments, reagents, and software used in biological testing to detect diseases.
South American e-commerce platform MercadoLibre bolted 3.5% and hit the 1,337.85 buy point of a flat base.
Its relative strength line hit a fresh high as shown by the blue dot on the weekly chart. Shares gained 59%, hitting a 52-week high.
Facebook parent Meta Platforms reversed course and gained 2.1%. EU regulators fined the social media giant $1.3 billion for allegedly illegally sending and storing customer data to the U.S.
Ryanair gave back earlier gains, trimming 0.1%, after the Irish passenger airline reported better-than-expected 2023 revenue. The low-cost airline cited higher demand and fares for the positive results.
Shares of the IBD 50 stock are in the 5% buy zone of a flat base with 99.44 buy point.
Other Stock Market Movers: Regional Bank Jumps
Regional bank PacWest popped 14.8% in Thursday's stock market on news it will sell 74 real estate construction loans to Kennedy-Wilson Holdings with a loan balance of $2.7 billion.
Shares of the real estate investment firm KW jumped 3.1%.
Dow Jones component JPMorgan Chase reversed course, shedding 0.9% despite raising net interest income guidance to $84 billion, attributed to taking over First Republic.
Shares of the financial giant are nearing the 141.88 buy point of cup-with-handle base. JPM hosts an Investor's Day conference in New York today.
Also in the Dow, Nike lost another 2.6% in heavy volume, on top of Friday's 3.5% drop, after an analyst downgrade to sell.
The footwear stock is below its 200-day moving average.
Follow Kimberley Koenig for more stock news on Twitter @IBD_KKoenig.
