The Dow Jones Industrial Average moved higher Monday but other indexes fell as hot artificial intelligence stocks Nvidia (NVDA) and Super Micro Computer (SMCI) sold off. Meanwhile, alternative AI play Micron Technology (MU) rose after a bullish call. And famed fund manager Cathie Wood snapped up a plunging stock while a Warren Buffett play tested an entry.
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The Dow Jones industrials fared best out of the major indexes on the stock market today as it rose nearly 300 points, or 0.7%, in afternoon trading. The tech-heavy Nasdaq composite was down 0.8%. Nasdaq components Baker Hughes (BKR) and Diamondback Energy (FANG) bucked the tide, however. Baker Hughes was up nearly 4%, breaking out past a trend line entry around 33. Diamondback rose more than 3% and is forming a flat base.
Micron, another Nasdaq stock, rose 0.1%, but was off session highs, after Citi reiterated the stock is a “top pick” and boosted its price target to 175 from 150. Micron reports earnings Wednesday. Citi expects Micron to beat analyst views, partially due to “increasing AI memory exposure.”
Meanwhile, the S&P 500 was down 0.1%. In the S&P, SLB (SLB) and APA (APA) outperformed with gains of around 4% each. Conversely, AI play Super Micro fell almost 9%.
ResMed (RMD) dropped almost 11% amid fears Eli Lilly’s obesity medicine could shake up the sleep apnea space. ResMED makes CPAP and other breathing equipment. On Friday, Eli Lilly said its tirzepatide medicine reduced obstructive sleep apnea severity by up to 62.8%. ResMed sells CPAP machines that treat sleep apnea.
Stock Market Today: Energy Shines But Bitcoin Falls
The S&P 500 sectors were mostly higher. Energy and financials were the strongest areas while technology and consumer discretionary lagged in afternoon trading.
Small caps were off highs, but the Russell 2000 was still up 0.5%. The Innovator IBD 50 ETF (FFTY) reversed lower, falling 0.6% on the stock market today.
Bitcoin was down more than 6% and is testing the $60,000 per coin level, according to CoinDesk. At its low, it was trading for $59,847.04. Bulls will be keen to see it finds support at the psychologically important $60,000 level.
The price of the digital currency has reversed sharply from highs for the year. It is down about 18% from its high for the year of $73,737.94, which it hit back in March.
Updated 12:05 p.m. ET
Nvidia Stock Seeks Support Amid 15% Fall
Fans of Greek mythology will know that Icarus took a fateful plunge after flying too close to the sun. And Nvidia stock owners will be suffering a similar feeling to the plucky hero of yore as the stock continues to fall from recent highs.
While its decline of around 15% from its high of 140.76 is a mere blip on its monthly chart, it is still painful for those who bought at the top.
The stock, which was down around 5% on the stock market today, is currently testing support at the 21-day exponential moving average.
Nvidia remains a member of the prestigious IBD Leaderboard list of top stocks, but it has been hedged with a position in the Tradr 1.25X NVDA Bear Daily (NVDS) exchange traded fund. This returns 1.25 times the inverse daily performance of Nvidia.
Stock Market Today: More Stocks Break Out, One Rockets
Elsewhere, Hartford Financial (HIG) is in a buy zone after moving back above a second-stage entry of 103.64 out of a flat base, according to MarketSurge analysis.
Earnings are a key strength, with the diversified insurer having an Earnings Per Share Rating of 96 out of a possible 99. It is in the top 10% of stocks in terms of price performance over the past 12 months into the bargain.
Alnylam Pharmaceuticals (ALNY) is well extended after gapping clear of a consolidation pattern entry of 199.38.
Shares rocketed Monday after experimental heart-disease treatment vutrisiran topped expectations in a highly anticipated study.
It helped patients with ATTR amyloidosis with cardiomyopathy, a disease where abnormal protein builds up on the heart and causes damage. Vutrisiran reduced death for any reason by 36%.
Hercules Capital (HTGC) is in a buy zone after surpassing a flat base entry of 20.01. Overall strong performance has netted it an IBD Composite Rating of 99.
Updated 10:52 p.m. ET
Dow Jones Today: Boeing Steady Despite DOJ Fears
Boeing (BA) stock rallied about 2% despite reports that prosecutors have recommended the Department of Justice bring criminal charges against the aerospace giant.
Justice officials claimed last month that Boeing violated a settlement related to two fatal crashes involving its 737 Max aircraft. Boeing is trading above its 50-day moving average but below the 200-day line.
IBM (IBM) was actually faring best on the Dow Jones today, rising more than 2%. It was followed by Goldman Sachs (GS), Caterpillar (CAT) and Chevron (CVX).
Intel (INTC) and Salesforce (CRM) lagged, but were limited to declines of less than 1% each.
Stock Market Today: Cathie Wood Buys Roku Amid Plunge
Sometimes big-name investors will go where the average trader fears to tread. That was the case with Ark Invest Chief Executive Cathie Wood, who snapped up more Roku (ROKU) stock on Friday.
The firm’s flagship ARK Innovation (ARKK) exchange traded fund bought more than 48,000 shares in the streaming device play.
Roku stock is currently below its key 50-day and 200-day moving averages, MarketSurge analysis shows. This underlines its weakness. Earnings are also not ideal.
Since hitting a recent high of 108.84 in December, the stock has been in reverse gear. At Friday’s close it was down slightly more than 50% from that level.
Investor’s Business Daily recommends buying stocks with strong earnings and price performance, something Roku lacks at the moment. Look for leaders in strong industries that are showing superior earnings growth and sales.
Outside Dow Jones: 3 Stocks Near Entries
There were a few stocks trading near buy points in early action on the stock market today.
Brazilian digital bank play Nu Holdings (NU) cleared a flat base entry of 12.59, according to MarketSurge analysis. The move came in high volume.
The stock has a best-possible IBD Composite Rating of 99. Earnings have grown an average 294% over the past three quarters. Warren Buffett is a backer of the stock, and his Berkshire Hathaway (BRKB) owns shares.
Elsewhere, Meta Platforms (META) is homing in on a cup-with-handle buy point of 514.01. This is a midstage base.
Overall performance is very good, which is reflected in Meta’s near-perfect IBD Composite Rating of 98. Meta stock is a member of the IBD Tech Leaders list. Roughly 48% of its stock is currently held by funds, according to MarketSurge data.
Further, insurance stock Manulife Financial (MFC) is nearing a weekly chart flat-base entry of 26.81 on the stock market today. Overall performance is excellent, netting the stock an IBD Composite Rating of 97.
Please follow Michael Larkin on X, formerly known as Twitter, at @IBD_MLarkin for more analysis of growth stocks.
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