The Dow Jones Industrial Average was back near session highs in afternoon trade Monday as blue chips got a boost from Apple (AAPL). Equities were also helped by Tesla (TSLA), which soared amid a China deal, and AI boasts Elon Musk. Alphabet (GOOGL) and Nvidia ( NVDA ) slipped in the stock market today, but some problems were held by Warren Buffett’s Berkshire Hathaway (BRKB) approached entry points.
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Meanwhile, a trio of notable stocks are currently having difficult entries: Howmet Aerospace (HWM), Broadcom (AVGO) and Steps (LRN).
The stock market today: S&P 500 rises, Paramount wins
Stocks held in positive territory as they looked to build on last week’s gains. The Nasdaq composite rose 0.4 per cent. SiriusXM ( SIRI ) did well here as it rose nearly 5%.
The S&P 500 rose 0.3% and moved further above the 5,000 level. Albemarle (ALB) fared well here, rising about 7% while Domino’s Pizza (DPZ) rose nearly 6% after delivering an earnings beat.
Paramount Global ( PARA ) also outperformed the benchmark index, rising more than 3% on speculation that CEO Bob Bakish could be ousted amid merger discussions. That’s above the 50-day moving average but below the 200-day line, MarketSurge analysis shows. Primary earnings are due after closing.
S&P 500 sectors were mostly positive. Consumer and utility companies rose the most. Communication services and consumer goods lagged the most.
Small-cap stocks fared better, with the Russell 2000 up nearly 1%. The Innovator IBD 50 ( FFTY ) exchange-traded fund rose 0.2% in the stock market today.
Treasury yields were lower heading into the next Fed meeting, which starts on Tuesday. The 10-year government bond fell five basis points to 4.62%, while the 30-year slipped four basis points to 4.74%. The five-year yield fell five basis points to 4.64%, while the two-year yield fell three basis points to 4.97%.
Dow Jones today: Apple shares jump, Boeing flies
The Dow Jones Industrial Average remained up more than 100 points, back near session highs. This corresponds to a gain of almost 0.3 per cent.
Apple emerged after Bernstein upgraded the stock to outperform. Analyst Toni Sacconaghi argued that concerns over China’s weakness may be overblown. He believes that “the prevailing weakness in China is more cyclical than structural.”
The stock rose just over 3 per cent. It has now regained the 50-day moving average, according to MarketSurge chart analysis.
Boeing ( BA ) did slightly better in the Dow Jones today, however, as it rose more than 3%. Verizon Communications (VZ) and Amgen (AMGN) was also the top performer on the widely watched index.
Intel (INTC) lagged as it fell more than 1%. UnitedHealth ( UNH ) was another laggard as it also fell 1%.
Warren Buffett stocks near buy points
There are few investors more lauded than Warren Buffett, and Apple is one of his core holdings. But a few other stocks owned by the Oracle of Omaha’s company, Berkshire Hathaway, are currently near buy points.
Dialysis provider DaVita (DVA) has formed a flat base with an ideal buy point at 141.54. It broke above a trend line around 135 and had already recovered the 50-day moving average. Overall strong performance has earned it an IBD Composite Rating of 91. Its Earnings Per Share Rating comes in at 96 out of 99.
Capital One Financial (COF) is nearing the top of its buy zone above a flat base entry at 140.86. It has reversed after gaining support at the 50-day line.
The credit card company is in the top 11% of issues in terms of price development over the past year. Earnings are seen to rise by 9% this year and 16% in 2025.
And Coca-Cola (KO) tests a flat base entry of 61.62. This is a first-stage base, a bonus. Overall performance isn’t ideal, with its Composite Rating coming in at 78. But the dividend yields 3.14%, far better than the S&P 500 average of 1.39%.
Elon Musk gets AI to brag, Tesla gets China deal
Tesla shares continued to rise on the stock market today after it emerged that the company has struck a deal that will pave the way for it to bring its Full Self-Driving feature to China.
Tesla will implement its autonomous driving services based on map and navigation functions provided by the Chinese technology giant Baidu (BIDU).
Wedbush Securities analyst Dan Ives cheered the move, which came after CEO Elon Musk visited the country over the weekend. Ives called the visit a “home run”. He has a price target of 275 and an outperform rating on Tesla stock.
As if that wasn’t enough, Musk also took to his social media platform, X, to boast about artificial intelligence initiatives at the electric car giant.
“Tesla will spend about $10 billion this year on combined training and inference AI, the latter primarily in cars,” Musk wrote. “Any company that doesn’t spend at this level and do it efficiently can’t compete.”
Tesla stock rose more than 15%, a strong move considering it has a market cap of more than $600 billion. It has risen back above its 50-day moving average.
The stock’s relative strength line is also turning higher after recent declines, although it has a lot of ground to make up. Tesla stock has continued to decline by more than 21% since the start of the year.
Tesla is on pace for its biggest advance since March 9, 2021, when it rose 19.6%, according to FactSet data.
Magnificent Seven: Nvidia Stock, Alphabet Fall
Besides Tesla, other stocks in the Magnificent Seven had mixed luck at the start of a new week.
Nvidia ( NVDA ) fell nearly 1%. The AI game is trading near its 50-day line as it forms a new consolidation. It is a member of the IBD Leaderboard list of top stocks.
Google Parent Alphabet However, (GOOGL) lagged the most, falling just over 3%. It is paring some gains after a strong post-earnings jump last week.
Meta platforms ( META ) continues to struggle after a disappointing quarterly report last week, falling nearly 3% in afternoon trade.
Microsoft (MSFT) fell more than 1%, while Amazon.com (AMZN) rose 0.5 percent.
Outside the Dow Jones: Three Stocks Eye Entries
With moves in the stock market, investors should be on the lookout for stocks that are holding close to buy points.
Howmet Aerospace is approaching a flat-base entry of 69.55 in the stock market today. Its relative strength line is nearing a fresh high. The stock just retook its 50-day moving average, an encouraging sign. It has the best possible IBD Composite Rating of 99.
Earnings are due on Thursday, making it something to watch right now. One approach highlighted by Investors Business Daily is to use options as a strategy to reduce risk around earnings.
Broadcom has formed a second-tier double bottom base. The ideal entry point here is 1,403.98, MarketSurge analysis shows.
Stride is another to watch as it digests some post-earnings gains as it moves towards a buy point. The education play is trying to reach an early stage consolidation entry at 69.70.
It rose sharply after reporting earnings last week. Earnings rose 23% to $1.60 per share, while revenue rose 11% to $521 million.
Stride stock has a Composite Rating of 97 and its B+ Accumulation/Distribution Rating reflects institutional buying of late. In total, 71% of the shares are owned by foundations.
Please follow Michael Larkin on X, formerly known as Twitter, at @IBD_MLarkin for more growth stock analysis.
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