Stock Market Near Session Highs; Beauty Stock Pops As Nvidia Reaches New High

Major stock market indexes remained near the highs of the day in midday trading Monday. The Dow Jones Industrial Average improved from morning lows despite the weight of Boeing‘s (BA) tumble. Magnificent Seven and IBD 50 name Nvidia (NVDA) hit a buy point.

The Dow pared losses to 0.1% while the S&P 500 climbed 0.6%. The Nasdaq showed more strength and rallied 1.4% in the stock market today.

The small-cap Russell 2000 advanced 1%. The Invesco QQQ Trust (QQQ) climbed 1.4%. The Innovator IBD 50 ETF (FFTY) rallied 2%.

Volume fell on the New York Stock Exchange and rose on the Nasdaq vs. the same time on Friday. The 10-year Treasury yield shed 7 basis points to 3.97%.

Stock Market Movers: Beauty Stock Revisits Buy Point

IBD 50 component ELF Beauty (ELF) spiked more than 9% and topped the 5% buy zone from a 139.85 buy point. The cosmetics and skin care supplier broke out of a base in mid-December but later retreated below the buy point. ELF Monday reclaimed its buy point and the 21-day exponential moving average after recent tests of the line.

Mobileye Global (MBLY) rose more than 3% as it tries to recover after plunging more than 24% Thursday. The company warned that day that 2024 sales would be below estimates due to excess inventory at its automotive customers. Mobileye makes technology for advanced driver-assistance systems and self-driving cars.

Footwear maker Crocs (CROX) gapped up in heavy volume after management raised its fourth-quarter and full-year 2024 revenue guidance. CROX is on pace for its largest one-day increase since April 6, 2020, when it rose 26.3%, according to Dow Jones Market Data.

Dow Stock Boeing Has More Trouble

Dow Jones stock Boeing gapped down after the Federal Aviation Administration grounded Boeing model 737 MAX 9 aircraft following a Friday incident in which an Alaska Air (ALK) plane made an emergency landing after a fuselage section blew out.

The FAA termed it a “pressurization issue.” The issue caused a piece of the plane to blow out in midair, leaving a hole in the side of the plane. The stock found support at its 50-day moving average, but not before it triggered a 7% sell signal. It had already triggered a round-trip sell signal last week.

BA stock is on track for its largest decrease since May 9, 2022, when it fell 10.5%, according to Dow Jones Market Data. BA was the biggest loser on the Dow and S&P 500 Monday morning.

Alaska Air stock improved from earlier losses and is currently trading down slightly. The airline said Sunday it canceled 230 flights with more expected this week to inspect 737-Max jets. Fuselage maker Spirit AeroSystems (SPR) plummeted on the news but pared losses.

Nvidia Hits New High

Nvidia broke out of a flat base with a 505.48 buy point as it reached an all-time high. AI stocks are getting attention as the CES 2024 technology trade show opens Tuesday in Las Vegas.

Glucose monitor maker Dexcom (DXCM) broke out of a cup-with-handle base and is in buy range from the 126.37 buy point. The company raised its full-year 2024 revenue growth range to 23%-24%. Dexcom is today’s selection for IBD 50 Growth Stocks to Watch.

Bitcoin and other crypto stocks rallied in early morning trading then faded as investors wait for word on SEC approval of a spot bitcoin ETF this week. Coinbase (COIN) was nearly flat after earlier volatility. Needham raised its price target to 180 from 160 and maintained its buy rating on the stock. In separate news, Coinbase plans to buy an unidentified company with a license allowing it offer bitcoin derivatives in the European Union, the company told CNBC Friday night.

Other Stock Market Movers: Deals Lift Biotechs

Axonics (AXNX) gapped up in huge volume, after it announced it agreed to be acquired by Boston Scientific (BSX) for $71 per share. AXNX reached a 52-week high on the move. BSX shares dipped 0.3%.

Harpoon Therapeutics (HARP) more than doubled in heavy trading after the company announced a Merck (MRK) subsidiary will acquire the company for $23 per share in cash. MRK ceded 0.2%.

Commercial Metals (CMC) gapped up after the steel company reported better-than-expected fiscal first-quarter adjusted earnings and sales. CMC stock tapped the 51.56 buy point of a cup-with-handle base and reclaimed its 200-day moving average on Monday.

IBD 50 stock GigaCloud Technology (GCT) advanced nearly 13% in heavy volume and reached the highest point since September 2022.

Fourth-quarter earnings season begins with Bank of America (BAC), Dow stock JPMorgan Chase (JPM), Citigroup (C) and Wells Fargo (WFC) all on deck Friday. Dow stock UnitedHealth Group (UNH) also reports Friday.