Stocks closed with modest gains Tuesday as the Dow Jones Industrial Average inched up and the S&P 500 managed to end the day at a new high. Meanwhile, Nvidia stole the show as it took the lead in market capitalization and reached a fresh high on the stock market today.
The Dow managed a 0.2% gain and found support at its 50-day moving average. The S&P 500 fared the best of the three major indexes by climbing 0.25% while the Nasdaq edged higher. Both the S&P and Nasdaq closed at record highs Monday.
The small-cap Russell 2000 climbed 0.2%, and closed just under its 50-day line.
Volume fell slightly on the Nasdaq and the New York Stock Exchange vs. the same time on Monday, in preliminary numbers. U.S. financial markets will be closed Wednesday in observance of the Juneteenth holiday.
Nvidia Pulls Ahead Of Microsoft
Nvidia gained 3.5% after Rosenblatt raised its price target on the stock to 200 from 140 and maintained its buy rating. Shares closed at record highs, well extended from a 92.22 buy point.
An IBD Leaderboard name, Nvidia moved ahead of Microsoft to be the largest company measured by market cap in Tuesday trading. Nvidia's market cap stands at $3.34 trillion while Microsoft's is $3.317 trillion.
Microsoft shares dropped 0.5% on the stock market today. Shares are in the 5% buy zone of a flat base with a 430.82 buy point, according to MarketSurge pattern recognition.
Nurix Therapeutics rocketed more than 20% in heavy volume after H.C. Wainwright & Co. raised its price target to 26 from 19 and maintained its buy rating on the biotech stock. Shares broke out of a cup-with-handle base with a 17.28 buy point.
At 18.44 Nurix stock is slightly extended from the buy zone, which reached to 18.14. The company announced positive results on its leukemia treatment on Monday. Its relative strength line reached a 52-week high.
Updated 3 p.m. ET
Hilton broke out of a stage-two flat base after hitting the 215.79 buy point on its way to an all-time high. The hotel stock has climbed from the bottom of the base, while increasing 11 out of the last 14 trading sessions.
Cardinal Health leapt more than 3% and reclaimed its 50-day and 200-day moving averages. Shares are in an irregular cup base with a 116.04 buy point. The entry coincides with its record high, reached on March 13.
Updated 1:38 p.m. ET
IBD 50 Stocks Outperform; Oxy Gets A Buffett Boost
The Innovator IBD 50 ETF outperformed with a 1.5% jump at midday. The fund is at the highest point since September 2022.
Stocks helping lift the IBD 50 Index include ELF Beauty, Hims & Hers Health and Arm Holdings.
Hims & Hers Health climbed to an all-time high on the stock market today. Shares are extended from the 20% profit zone of a cup base with a 17.16 entry. The stock has had an explosive run since the health and wellness company topped first-quarter profit and revenue estimates on May 6.
Warren Buffett company Berkshire Hathaway reported late Tuesday it added nearly 3 million shares of Occidental Petroleum from June 13 to June 17.
Occidental stock rallied 1.5% on the news and tested its 21-day exponential moving average, seeking support. Meanwhile, Berkshire Hathaway advanced modestly as it hugs its 50-day line.
Updated 11:50 a.m. ET
IBD 50 Stock ARM Breaks Out On Stock Market Today
IBD 50 stock Arm Holdings, broke out of an undefined base with a 164 buy point. Shares are in the 5% buy zone up to 172.20. Arm stock has more than doubled so far this year, and it cleared a trend line entry around 132 earlier this month.
Shares reached a new high on the stock market today. Arm develops advanced chip designs and software tools used in smartphones, autos and data centers.
Fellow IBD 50 name Powell Industries tested its 50-day line after sinking 5%. Shares of the power station equipment maker gave back a nearly 13% gain from a cup-with-handle base breakout with a 183.49 buy point, triggering a round-trip sell signal.
Restaurant technology firm Toast catapulted nearly 8% in heavy trading and reclaimed its 50-day line. The stock broke out of past a 25.63 buy point on May 8, after Toast reported mixed first-quarter results. The stock triggered a 7% loss-cutting rule but is rebounding this week.
Updated 10:41 a.m. ET
Stock Market Today: ELF Beauty Breaks Out
Meanwhile, the 10-year Treasury yield shed 4 basis points to 4.24%. And U.S. crude oil prices lifted to $81.51 a barrel.
The Commerce Department's May U.S. retail sales came in lighter than expected, with a 0.1% increase vs. the 0.3% economists expected. It still improved from April's revised drop of 0.2%. May sales excluding vehicles fell 0.1% vs. the 0.3% increase projected, and equal to the revised April number.
In other economic news, May's industrial production surprised with a 0.9% increase vs. the 0.3% forecast. It was flat in April.
IBD 50 stock ELF Beauty broke out of a cup-with-handle base with a 202.58 buy point. The move came after Canaccord Genuity raised its price target to 250 from 214 and maintained its buy rating on the skin care and cosmetics company. The 5% buy zone reaches to 212.71.
Dow Jones stock Merck reversed lower after the Food and Drug Administration approved the drugmaker's new pneumonia vaccine, Capvaxive, for adults age 50 or older. The stock is in an early-stage flat base with a 133.10 buy point, although shares slipped below the 50-day line on the stock market today.
The stock has a suboptimal 44 IBD Earnings Per Share Rating, which includes a significant earnings drop in 2023. But estimates show improving profits on single digit-sales growth over the next four quarters.
Lennar fell more than 2% after the homebuilder reported higher-than-expected fiscal second-quarter adjusted earnings and sales late Monday. New orders jumped 19% while home deliveries popped 15%. Shares are in a flat base with a 172.59 buy point. The stock fell further below its 50-day line, where it's traded for a good portion of the base.
Futures: New King Nvidia Faces This Risk; 5 Stocks Near Buy Points
Medical Stock Soars
Silk Road Medical gapped up in huge volume after Boston Scientific agreed to acquire the medical device maker for $27.50 per share, or an equity value of about $1.26 billion. Boston stock edged lower in the stock market today.
NextEra Energy gapped below its 50-day moving average. The clean-electricity provider announced late Monday that it intends to sell $2 billion of equity units, at a unit price of $50 a unit.
Furniture stock La-Z-Boy soared in heavy volume after the company handily beat fiscal fourth-quarter earnings and sales estimates. The stock broke out past the 39.87 buy point of an irregular base.
Grocery retailer Kroger rose about 2% after BMO Capital upgraded the stock to outperform from market perform and lifted its price target to 60 from 58. The retailer reports its fiscal first-quarter earnings results Thursday morning.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
