The stock market treaded water in afternoon trading on Monday, with the major indexes holding modest gains and keeping last week's rally alive. The Dow Jones Industrial Average eased from a record level.
The Dow gained 0.3% and climbed to a new high. The 30-stock index is on pace to close above the 38,000 level for the first time on record. Dow Jones component Boeing lost 0.8% after the Federal Aviation Administration recommended inspections of mid-exit door plugs for Boeing 737-900ER jets. This in addition to similar inspections in Boeing 737 Max 9 planes.
The S&P 500 edged higher 0.2%. The Nasdaq eased gains to 0.3% in the stock market today. The S&P 500 and Dow Jones hit all-time highs on Monday after doing the same on Friday. The small-cap Russell 2000 climbed 1.4% Monday midday.
Meanwhile, the Invesco QQQ Trust crept up 0.1% as the Innovator IBD 50 ETF gained 1%.
Volume rose on the New York Stock Exchange and the Nasdaq vs. the same time on Friday. The 10-year Treasury yield shed 4 basis points to 4.11%.
Stock Market Movers: Chip Stock Falls On Downgrade
Advanced Micro Devices sold off more than 3% after Northland Capital Markets downgraded the chip stock to market perform from outperform. Shares saw a 52-week high on Friday as chip stocks assert themselves.
Western Digital gapped up more than 5% in heavy volume, after Morgan Stanley raised its price target on the disk drive and data storage stock. Shares reached the 20% profit target of a V-shaped base with a 47.14 buy point. WDC hit a 52-week high and was the biggest gainer on the S&P 500 on Monday. The company has struggled with losses and declining sales, but analysts expect a turnaround in the fiscal year ending June 2025.
IBD 50 and Big Cap 20 name Zscaler rose more than 3% to a 52-week high. The cloud security stock is extended from a bullish three-weeks-tight pattern with a 227.29 entry.
Fastly Gets Citi Upgrade
Fastly gapped up in heavy volume after Citigroup upgraded the cloud platform stock to neutral from sell and lifted its price target to 20 from 11.
IBD 50 component StoneCo trimmed gains and rose around 2%, after Goldman Sachs upgraded the Brazilian fintech to buy from neutral and raised its price target to 21 from 12. The company is on today's IBD 50 Stocks to Watch. The stock has formed a three-weeks-tight pattern.
Fitness beverage Celsius Holdings recovered more than 3% of Friday's 12.7% drop. The stock tested its 50-day line Monday.
Super Micro Computer was back to positive territory and rose 2.8% after Friday's 35.9% jump. On Friday, the data center hardware company raised its preliminary fiscal second-quarter net income and sales numbers and topped analysts' quarterly estimates. Shares are extended after breaking out past a 357 buy point. A handle entry at 327.55 was also viable.
Department store chain Macy's advanced more than 2% on news it rejected a proposal by shareholders Arkhouse Management and Brigade Capital Management to take the retailer private in a $5.8 billion deal. The stock is bouncing off its 50-day moving average.
ADM Faces Executive Crisis
Archer Daniels Midland tumbled more than 20% on news it put its chief financial officer on administrative leave as it investigates accounting practices of its nutritional unit. The food processing stock is on track for its largest one day decrease on record, according to Dow Jones.
NuStar Energy gapped up on news it will be acquired by Sunoco in a $7.3 billion stock deal. Petroleum transporter stock NuStar broke out of a flat base with 19.32 buy point, but the gap up created a new buy range from 21.39 to up to 22.46 based on the 5-minute opening bar. Sunoco sank around 4% and is testing its 50-day moving average.
Gilead Sciences gapped down more than 10% after a lung cancer treatment did not meet its primary goal. The biotech is now below its 200-day line.
Magnificent Seven Action: Apple Hits Buy Point
Magnificent Seven stock Apple added more than 1% and is back in the buy zone of a cup-with-handle base with a 192.93 buy point. The 5% buy zone stretches to 202.58. The stock reclaimed its 50-day line on Friday and is forming a new base, too.
Nvidia edged higher 0.5% and is extended from a 505.48 buy point. It hit another record high.
Tesla reversed lower, down 1.9%, ahead of its earnings report late Wednesday. Tesla stock has steadily dropped since late December and trades below its 200-day moving average. Its relative strength line is also on downtrend.
Other Stock Market Action: Solar Stock Shines Brightly
SolarEdge rallied after the company announced it's slashing about 16% of its staff as part of a cost reduction and restructuring plan.
IBD 50 stock SentinelOne gapped up after BTIG upgraded the stock to buy from neutral with a price target of 30. Shares retreated after reaching the 20% profit zone of a 21.95 buy point.
Fellow IBD 50 name ELF Beauty trimmed heavy-volume losses after Morgan Stanley downgraded the cosmetics and skin care stock to equal weight from overweight but raised its price target to 168 from 137. Shares have given back much of a nearly 18% gain from a 139.85 buy point. But ELF is getting some support at its 21-day exponential moving average Monday.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
