The Dow Jones Industrial Average rose at midday after Goldman Sachs (GS) beat views and retail sales data came in strong. Tesla (TSLA) fell after CEO Elon Musk said massive job cuts are coming. Apple (AAPL) fell, while Nvidia (NVDA) climbed in the stock market today after bullish Wall Street calls.
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Meanwhile, a trio of noteworthy stocks were moving higher toward entries: KLA (KLAC), Lam Research (LRCX) and Heico (HEI).
Stock Market Today: Retail Sales Aid Stocks
Stocks moved higher after Israel successfully repelled a strike from Iran over the weekend and U.S. retail sales were stronger than expected. March retail sales rose 0.7% overall compared with expectations for a 0.3% rise. They were up 1% excluding autos and gas, also above views. February’s overall gain was revised up to 0.9%.
Indexes were off early highs, though. The Nasdaq composite was barely higher. Applied Materials (AMAT) was a top performer as it rallied nearly 2%. Illumina (ILMN) and Atlassian (TEAM) were among the laggards.
The benchmark S&P 500 trimmed its gain to 0.3%. Regional bank M&T Bank (MTB) popped more than 5% despite an earnings miss. The stock is nearing a 148.23 flat-base entry, MarketSurge analysis shows.
The S&P 500 sectors were mostly positive. Financials and health care outperformed on the stock market today. Real estate and utilities were giving up the most ground.
Small caps reversed lower, with the Russell 2000 sliding 0.5%. Growth stocks gave up earlier gains, with the Innovator IBD 50 ETF (FFTY) flat at midday.
Yields were rallying strongly again after Friday’s flight to safety. The 10-year Treasury note soared 15 basis points to 4.65% while the 30-year also jumped 15 basis points to 4.75%. The five-year yield popped 11 basis points to 4.65% while the two-year climbed 6 basis points to 4.94%.
Dow Jones Today: Goldman Sachs Earnings Pop
The Dow Jones was up more than 100 points in early trading, a gain of 0.3%.
Goldman Sachs stock was the best performer, rising more than 3% after the banker reported first-quarter earnings that were well above Wall Street views. Strength in its trading and investment banking businesses fueled the beat.
JPMorgan Chase (JPM) was another Dow financial outperforming with a nearly 1% gain. Intel (INTC) and Nike (NKE) also shined.
Salesforce (CRM) was the worst performer on the Dow Jones and the S&P 500 today as it tumbled nearly 6% in early action. The stock is on pace for its worst day since Dec. 5, 2022, according to Dow Jones Market Data. Salesforce is in advanced talks to acquire Informatica (INFA), the Wall Street Journal reported.
Cathie Wood Buys Plunging Stocks
Warren Buffett once said that investors should “be fearful when others are greedy and to be greedy only when others are fearful.”
And that was certainly the case with ARK Invest Chief Executive Cathie Wood, who used Friday’s sharp drawdown to snap up plunging stocks.
Her firm, where she also serves as chief investment officer, snapped up over 308,000 shares in Recursion Pharmaceuticals (RXRX) for the ARK Innovation (ARKK) exchange traded fund on Friday. It currently sits about 48% below its Feb. 27 high of 15.74 and has undercut the 200-day line. IBD does not recommend buying issues priced below 10 or in downtrends.
The fund also bought nearly 40,000 Roku (ROKU) shares on Friday for the ARK Innovation Fund.
Roku stock is currently stuck below its 50-day and 200-day moving averages, MarketSurge analysis shows. Shares now sit around 45% below their high of 108.84 reached Dec. 14.
Other moves made by the swashbuckling investor included purchases of Teledoc Health (TDOC) and 10X Genomics (TXG).
Trying to catch a falling knife can be tempting, but often leaves investors nursing losses. IBD recommends buying stocks with strong earnings and price performance. Look for leaders in strong industries that are showing superior earnings growth and sales. The IBD 50 is a rich hunting ground for such issues.
Magnificent 7: Tesla Falls As Elon Musk Makes Move
The so-called Magnificent Seven were having mixed fortunes in early trading Monday.
Tesla stock fell nearly 3% despite news it is looking to ax more than 10% of its global workforce as it chases growth. It lost more ground on its 50-day moving average, according to MarketSurge analysis.
Musk said in a leaked memo that the massive cuts are necessary due to “duplication of roles and job functions.” According to the firm’s annual report, it had 140,473 employees as of December 2023.
“There is nothing I hate more, but it must be done,” he said “This will enable us to be lean, innovative and hungry for the next growth phase cycle.”
A reported halt of Cybertruck deliveries may have also been weighing on Tesla stock. It has fallen by about a third so far in 2024.
Apple stock was also lower on the stock market today, falling about 0.5%. This was despite Morgan Stanley reiterating an overweight rating on the stock. Apple is testing potential resistance at its 50-day line.
The Dow Jones stock was hit after iPhone shipments fell 9.6% in the January-to-March period vs. a year earlier, according to IDC estimates released Sunday.
Meta Platforms (META) reversed lower as it fell nearly 1%.
Other members of the much-watched group of stocks were rising. Nvidia stock popped nearly 1% after Citi issued a “positive catalyst watch” on the stock and said investors should buy on any weakness.
Amazon.com (AMZN), Microsoft (MSFT) and Google parent Alphabet (GOOGL) all rose fractionally.
3 Stocks Move Toward Entries In Stock Market Today
With some positive early action on the stock market today, it is a good time to look for stocks nearing breakouts.
Chip equipment stock KLA rose 1% at midday. It is gaining ground on a third-stage flat-base entry at 729.15, MarketSurge analysis shows.
Lam Research was also rising, and is continuing to trade tightly. It is nearing a flat-base entry of 1,000.39. This is also a third-stage pattern, which is between early and late stage.
Its earnings performance is not ideal, but LRCX is among the top 6% of stocks in terms of price performance over the past 12 months.
Aerospace play Heico rose 3% as it chases a flat-base buy point of 200.64. This is a first-stage base, which means it is more likely to net big gains. The stock’s EPS Rating comes in at 83 and it boasts strong institutional support.
Please follow Michael Larkin on X, formerly known as Twitter, at @IBD_MLarkin for more analysis of growth stocks.
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Source: investors.com
