The Dow Jones Industrial Average fell Monday as index newcomer Nvidia dipped on fears over its Blackwell chips. But other indexes were positive, with Tesla up on a move by President-elect Donald Trump. Trump Media & Technology soared while embattled Super Micro Computer jumped on the stock market today amid plans to avoid delisting.
The Dow Jones index saw a rally attempt go awry Monday, with the much-watched index falling nearly 70 points, or 0.2%. Magnificent Seven name Apple rose nearly 2% while Boeing was the top performer as it gained 2.6%. Bill Ackman stock Nike lagged the most with a 2.3% loss.
The Nasdaq composite gained 0.6% and is trying to retake its 21-day exponential moving average. It sits nearly 3% above its 50-day moving average.
Stock Market Today: Small Caps Flat, Growth Pops
Top performers on the tech-heavy Nasdaq composite outside of Tesla and Super Micro included Moderna and Advanced Micro Devices, up 7% and 3%, respectively. Warner Bros. Discovery rose nearly 3% amid a WSJ report it has settled its breach of contract lawsuit against the National Basketball Association. And Grail was one of the worst performers, but came off session lows as it fell more than 5%.
The benchmark S&P 500 rose 0.4%. Walgreens Boots Alliance and Henry Schein outperformed with lifts of more than 5% and 7%, respectively. Eli Lilly was among the laggards as it fell 2.5% to its lowest price since April. Government contractor Amentum struggled as it plunged nearly 10%.
The S&P 500 sectors were mostly positive. Energy and communication services were the best performers while industrials and health care were the only areas in negative territory.
Small caps saw gains evaporate, with the Russell 2000 up just 0.2% at the close. Growth stocks were well off session highs as well, though the Innovator IBD 50 was still up more than 1%.
Volume was higher on the Nasdaq vs. Friday but lower on the New York Stock Exchange, according to preliminary data.
Tesla Stock Pops On Trump Move
Tesla Chief Executive Elon Musk was a key ally for Trump during his bruising election campaign. And now it looks like Trump will be returning the favor amid reports his administration is keen to develop federal rules for self-driving cars.
Bloomberg reported that Trump's transition team plans to develop a federal framework for the much-hyped vehicles. While the hotly debated Tesla robotaxis face no restrictions in states such as Texas and Florida, this could make wider rollouts easier.
Leaderboard Watchlist name Tesla is well extended from an alternate handle buy point at 273.54.
Tesla finished the day with a gain of nearly 6%. It sits clear of its short-term and its major moving averages.
Trump Media Stock Rallies
But Tesla was not the only stock benefiting from a Trump bump Monday. Trump Media & Technology reversed higher to turn in a gain of nearly 17%.
Earlier in the session it had pulled back around 5%, but the bulls took over heading into the close. Trump Media stock now sits more than 25% above its 50-day moving average, but has some way to go before it can reclaim its 200-day line.
The stock rallied furiously heading into the election but it still sits roughly 40% below its Oct. 29 high of 54.68. The Truth Social parent has even further to go if it wants to climb into new ground for the year. It sits around 60% below its March high of 79.38.
Investing in the stock remains a risky proposition, however. It holds a weak IBD Composite Rating of 47 out of 99 and remains unprofitable.
3:02 p.m. ET
Stock Market Groups: Autos Shine, Food Wholesalers Lag
The 197 IBD industry groups offered a different perspective into the action on the stock market today. Automakers, boosted by Tesla, gold miners, drug stores and oil-and-gas realty trusts were among the top performing areas.
Meanwhile, food wholesalers, consumer electronics retailers, diversified medical plays and specialty retailers were among those lagging.
The shipping transportation group was also among the worst performers, perhaps reflecting growing geopolitical fears amid an escalation in the Ukraine conflict.
On Sunday President Joe Biden made the decision to allow Ukraine to strike inside Russia with long-range American missiles. Today, a Russian foreign ministry spokesperson said there will be an "appropriate response" if Ukraine uses the weapons to hit targets within Russia.
1:37 p.m. ET
Stock Market Today: Palantir Dives But Note Bullish Sign
One of the stock market sensations of 2024 has been the performance of Palantir stock.
However, the data analytics and artificial intelligence play suffered a body blow Monday. But bulls will be quick to point to the fact that shares got support at the 10-day moving average, an encouraging sign, as well as the fact the stock has come well off session lows.
And today's decline can be seen as just a blip when one takes into account the fact it has rallied by around 39% in the past four weeks alone.
As if that was not enough, the stock currently sits more than 42% above its 50-day moving average and holds a gain of more than 260% for the year.
Robinhood Pops, Makes Investors Merry
Online trading stock Robinhood was riding through the rhetorical glen with aplomb Monday as it popped more than 8%.
The stock is extended after bouncing off its 50-day moving average, and sits clear of its short-term benchmarks to boot.
Robinhood was loved by the good analysts at Needham, with John Todaro upgrading it from hold to buy and hiking his price target to 40. He believes it is set to be a "major beneficiary of more positive regulation within the crypto space."
At the moment, the stock is one to watch rather than purchase given how it is extended from key benchmarks. It holds a gain of around 175% so far in 2024.
12:28 p.m. ET
Stock Market Today: Spirit Airlines Halted
Spirit Airlines has had a torrid time since a federal judge earlier this year blocked its planned acquisition by JetBlue Airways on antitrust grounds.
Trading in the stock was halted on the stock market today, with "regulatory concerns" cited as the reason. It comes after the firm filed for bankruptcy protection amid underwhelming sales and rising losses.
The stock is currently down more than 94% for the year and fell more than 61% in the past four weeks alone. At the start of 2024 it was trading for 16.39 per share and its last price was 1.08.
JetBlue agreed to buy Spirit for 33.50 per share back in July 2022 but the move was thwarted back in January.
10:40 a.m. ET
Dow Jones Stocks: Nvidia Falls Amid Blackwell Fears
Market skeptics would argue the artificial intelligence trade got somewhat overheated in 2024. And Nvidia was getting hit amid fears that the firm's key new Blackwell line of AI chips is literally overheating too.
The Information reported the company is having trouble stopping the chips from getting too hot when connected together in customized server racks.
Investors will no doubt be keen to hear any updates on the issue from the firm's Chief Executive Jensen Huang when the firm reports earnings after the close on Wednesday.
The Dow Jones component is currently trading just below a 140.76 buy point, MarketSurge analysis shows. It has undercut the 21-day exponential moving average but sits above the 50-day line.
Buying the Leaderboard stock now would be risky given earnings are due soon. An approach highlighted by Investor's Business Daily is to use options as a strategy to reduce risk around earnings. It's a way to capitalize on the upside potential of a stock's move around earnings, while reducing the downside risk.
Stock Market Today: Super Micro Pops Ahead Of Nasdaq Deadline
Super Micro Computer has been getting hammered of late amid a host of issues. The stock jumped Monday on hopes it could avoid at least one of them, for now — a Nasdaq delisting.
The firm has to get approval from the exchange on a plan to regain compliance with listing requirements today. It will have to explain how it will fulfill its requirement to file its delayed annual report.
A source told Barron's the company expects to submit a plan by the deadline. The stock was hammered at the end of August when the firm announced it was delaying the filing of its annual report.
And earlier this month the server maker revealed it would be unable to file its quarterly report on time. In addition, the firm reported at the end of October that its accounting firm, Ernst & Young, had resigned over financial reporting concerns.
The stock is on pace for its largest increase since March 4, when it rose 18.7%. Nevertheless, Super Micro stock sits below the 50-day moving average and is down about 55% in the past four weeks alone. It has also lost about a quarter of its value year to date.
Outside Dow Jones: Burlington Stores Eyes Entry
The market was bereft of breakouts in early action on the stock market today. However, one stock moved toward a potential entry.
Burlington Stores has formed a flat base with an ideal buy point of 282.49, according to MarketSurge analysis. This is an early stage pattern for the stock, which means it has a better chance of netting good gains for investors if it breaks out.
Burlington is one to watch for now, because earnings are due before the market opens on Nov. 26. Once again, using options could be an option here. Overall performance is good, with its IBD Composite Rating coming in at 91 out of 99.
As a reminder, IBD continues to recommend 80% to 100% exposure for most investors.
Please follow Michael Larkin on X at @IBD_MLarkin for more analysis of growth stocks.
