Stocks managed to end up on the positive side Monday, switching gears from what had been a down session for all the major indexes. The gains came as Federal Reserve Chair Jerome Powell said more interest rate cuts are on the way. Meanwhile, Magnificent Seven names Meta Platforms and Amazon.com gained on bullish analyst calls while a trio of Warren Buffett stocks, including Apple, were near buy points on the stock market today.
Major indexes ended a seesaw month in positive territory. The Dow Jones Industrial Average finished the session up marginally, posting a record high. The Dow turned in a monthly gain of 1.9%.
Apple and Walmart were top performers on the Dow, while Intel and Boeing lagged with drops of nearly 2% each.
The Nasdaq composite added 0.4%. It remains more than 3% above its 50-day moving average. Intuitive Surgical was strong in the tech-heavy index, rising more than 2%. The Nasdaq rose 2.7% for the month.
But Micron Technology was one of the worst Nasdaq performers as it fell nearly 4%. Bargain retail play Dollar Tree, which has been stuck in a downtrend since March, also lagged as it also skidded nearly 4%.
Stock Market Today: Growth Shines
The benchmark S&P 500 gained 0.4%, also posting a new record high. It turned in a gain of 2% for September. CVS Health and FedEx were strong here with gains of more than 2% apiece.
Carnival pared losses to a fraction following an earnings beat. It is getting support at the 21-day exponential moving average. Meanwhile, Ulta Beauty and General Motors lagged, with both skidding nearly 4%.
Decliners outnumbered advancers on both the New York Stock Exchange and the Nasdaq. Volume was higher on both exchanges, according to early data.
The S&P 500 sectors had a mixed day. Energy and health care stocks were the best performers while materials and consumer discretionary were the weakest.
Small caps also posted gains, with the Russell 2000 rising 0.3%. Growth stocks fared better, with the Innovator IBD 50 exchange traded fund closing the day up 0.5%. It is holding above its 50-day and 200-day moving averages.
More Issues Eye Entries
A few stocks made progress toward buy points despite the broader challenging action.
Medical products maker Globus Medical inched closer to a flat base buy point of 74.21, MarketSurge analysis shows. This is an early-stage pattern, which is a bonus. It ended Monday up more than 1%.
The stock has an EPS Rating of 93 out of 99. Analysts expect strong performance, as they see per-share earnings rising 23% in 2024 and increasing 17% next year.
Big Money has been buying shares of late, with its Accumulation/Distribution Rating coming in at B. In total, funds currently hold 54% of shares, according to MarketSurge data.
NB Bancorp, Tri Pointe Homes Rise
NB Bancorp ended the session up more than 1%. The bank stock, which is a holding company for Needham Bank, is trying to reach a cup-with-handle entry of 19.06.
While earnings are a weakness at the moment, analysts see an earnings surge of 300% for 2024 before slowing to 13% growth in 2025. The recent initial public offering has a strong Relative Strength Rating of 90 out of 99.
Finally, homebuilder Tri Pointe Homes also is trying to complete a cup-with-handle. It has a buy point of 46.56, according to MarketSurge analysis.
It shows signs of being an excellent all-around performer, as reflected in its IBD Composite Rating of 96. Earnings have risen by an average 39% over the past three quarters, clear of the 25% growth sought by those following the IBD investing methodology.
3:03 p.m. ET
Stock Market Today: Indexes Fall After Powell Speech
Fed Chair Powell gave a speech at the National Association for Business Economics Annual Meeting in Nashville, Tenn. He touted the robustness of the economy as well as progress made on inflation.
He indicated that further rate cuts are on the horizon, though he insisted central bankers are "not on any preset course."
"Looking forward, if the economy evolves broadly as expected, policy will move over time toward a more neutral stance," Powell said.
Powell promised that the Federal Open Market Committee will continue to make decision on rate cuts on a "meeting by meeting" basis due to the fact that risks are "two sided." This was a reference to the Fed's dual mandate to both promote price stability while also targeting maximum employment.
Powell: Economy In 'Solid Shape'
According to Powell, the economy is in "solid shape" and pledged the FOMC will "use our tools to keep it there."
Powell and the other FOMC members slashed the benchmark interest rate by 0.5% at their September meeting. Further cuts are seen later this year. But traders see the path of cuts as being slower than before, following Powell's appearance.
According to the CME Fedwatch Tool, the odds of another 0.5% rate cut at the next FOMC meeting in November fell to 35.2% compared with yesterday's likelihood of 53.2%. Instead, CME skews the odds at 64.8% in favor of a smaller, 25-basis-point cut.
A monetary policy mistake was cited as the biggest downside risk to the U.S. economy in the next 12 months by 39% of forecasters surveyed by the National Association for Business Economics, according to Reuters. This was greater than the 23% who saw the results on the presidential election in November as the greatest risk.
12:24 p.m. ET
Magnificent Seven: Bullish Calls For Meta, Amazon
The so-called Magnificent Seven group of stocks were looking to lock down solid gains for the month on the stock market today.
They were having mixed luck in the final session of September though, despite some bullish calls.
Outside of Apple, Meta Platforms fared best with a gain of nearly 1% after Citi reiterated Meta as a top pick. The stock has rallied nearly 10% this month.
However, Amazon lagged the most despite Citi making the same call for the e-commerce and data center stock. Amazon stock fell nearly 2% and is testing support at the 21-day line. It retains a gain of nearly 4% for September.
Google parent Alphabet was up fractionally, while Microsoft, Tesla and Nvidia fell less than 1% each on the stock market today.
The Roundhill Magnificent Seven ETF was roughly flat Monday, but is set to end September with a gain of more than 6%.
Stock Market Today: Universal Health Flashes Sell Signal
Hospital stock Universal Health Services has been a top performer of late, rallying as much as 37% from its July low of 177.35.
However, the stock flashed a sell signal by undercutting the 50-day moving average in high volume Monday.
The stock is trying to rally back, but remains down around 3%. It has narrowed the dip below the 50-day line to less than 1%, though.
Those who own the stock should consider taking at least some profits.
10:54 a.m. ET
Stock Market Today: These Warren Buffett Stocks Are Near Points
There are few investors more feted than Berkshire Hathaway Chief Executive Warren Buffett. A few stocks held by the firm were in or near entries Monday.
Mastercard is in a buy zone after clearing a cup-base buy point of 490 more than two weeks ago, according to MarketSurge analysis. This is a first-stage base, a bonus.
It's holding strongly above the 10-week moving average and has been getting support at the 21-day line. The relative strength line is just off recent highs.
Overall performance marks are solid, but not ideal, for the payment stock. Its IBD Composite Rating comes in at 84 out of 99. Fundamental performance is very good though, with its EPS Rating sitting at 94.
Stock Market Today: Builder Moves Past Buy Zone
Louisiana-Pacific moved just past a buy zone on the stock market today after recently breaking out from a flat base entry of 101.89. This is a second-stage pattern, a bonus because earlier-stage bases are more likely to succeed.
At the moment, earnings are its biggest strength, with its EPS Rating coming in at a best-possible 99. Analysts see earnings rising 56% this year before slowing to 2% growth in 2025. It is in the top 5% of stocks in terms of price performance over the last 12 months.
Apple is closing in on a consolidation entry of 237.27, MarketSurge analysis shows. The tech giant was up nearly 2% Monday. It got a boost after Morgan Stanley reiterated an overweight rating on the stock.
Shares were also aided after JPMorgan analyst Samik Chatterjee said that their Apple Product Availability Tracker indicated trends were improving for the iPhone 16.
He said in a note to clients that the "likelihood that the initial slower momentum in demand for the Pro models is correcting itself with the release of Apple Intelligence drawing closer."
Its overall performance is strong, with its IBD Composite Rating coming in at 90. Both earnings and price performance are solid.
A Tale Of Two Auto Stocks: Nio Soars, Stellantis Skids
China electric vehicle maker Nio soared in early trading on the stock market today after the firm announced a fresh investment. Nio China, the firm's main operating entity, is getting a new $470 million investment from strategic investors.
Nio stock has rallied around 48% in the past four weeks, but remains down about 18% year to date. The fact the stock is worth less than 10 per share and is unprofitable means it is unlikely to appeal to those following the IBD Methodology.
By contrast, Stellantis plunged around 13% after the firm reduced its full-year outlook. It slashed projections for industrial free cash flow to a range of between minus 5 billion euros — roughly $5.58 billion — and minus 10 billion euros. It had previously expected this metric to be positive.
The firm's brands include Fiat, Chrysler and Dodge. It cited "global industry dynamics" and warned of lower sales across most regions in the second half of 2024.
The stock hit a downtrend since hitting a recent high of 29.51 in March. It has a poor IBD Composite Rating of 18 and its earnings line is dipping. Ford and General Motors fell roughly 2% in sympathy.
Israel-Lebanon Tensions Rise, Hezbollah 'Ready'
The crisis in the Middle East continued to escalate Monday, but its impact on the stock market today appeared muted.
Israel's defense minister Yoav Gallant described his country as prepared to use forces "from the air, sea, and land" as it looks to extinguish the threat from terror group Hezbollah.
The Wall Street Journal reported that Israeli special forces have been carrying out raids in southern Lebanon ahead of a possible broader ground incursion.
Meanwhile, Hezbollah's deputy leader Naim Qassem said the group is ready "for a ground invasion" and that the group will "emerge victorious."
The group is reeling from a series of blows which culminated in an Israeli airstrike killing leader Hassan Nasrallah.
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