The Dow Jones Industrial Average and other major indexes fell Monday even as artificial intelligence players Super Micro Computer and Nvidia rallied. A Bill Ackman stock neared a buy point while Donald Trump-linked Digital World Acquisition soared on the stock market today. Meanwhile, bitcoin and related stocks popped.
Even as the market fell, a trio of promising stocks looked strong near entries: Allstate, Badger Meter and Ares Management.
Stock Market Today: Nasdaq Dips, Small Caps Gain
The shortened trading week was off to a negative start as indexes took a pause amid some recent gains. Remember, the stock market will be closed Friday ahead of Easter Sunday.
The Nasdaq composite reversed briefly and flirted with positive territory, but ultimately closed 0.3% lower. Leaderboard stock Dexcom performed well as it climbed 5.2%, notching a 52-week closing high in the process.
The S&P 500 turned in a decline of 0.3%. AI play Super Micro was the best-performing stock in the benchmark index as it gained 7.2%, though it ended solidly off highs for the day. It has moved back above its short-term moving averages, MarketSurge analysis shows.
A majority of the S&P 500 sectors ended the session lower. Energy and utilities, the latter a defensive area, outperformed on the stock market today. Technology and industrials were the worst-performing areas.
Small caps ended in the green, with the Russell 2000 rising 0.2%. Growth stocks impressed, as the Innovator IBD 50 exchange traded fund closed off highs but still rose 0.5%.
Treasury yields closed higher even after Federal Reserve Gov. Lisa Cook said the Fed's dual mandate of low inflation and full employment is "moving into better balance." The 10-year Treasury note rose 3 basis points to 4.25% while the 30-year also popped 3 basis points, rising to 4.42%. The 5-year yield gained 4 basis points to 4.24% while the 2-year rose 3 basis points to 4.63%.
Dow Jones Today: Boeing Up, Disney Stock Shines
The Dow Jones industrials ended the session down 162 points. This equates to a dip of 0.4%.
Boeing saw some early gains fade, but shares still ended the session up 1.4%. Shareholders boosted the stock after Chief Executive Dave Calhoun announced plans to leave the company amid a broader shake-up. He departs at the end of the year.
The executive shuffling comes amid the Boeing 737 Max safety crisis and other quality issues. Calhoun is following in the footsteps of his predecessor, Dennis Muilenburg, who departed in 2019 after two 737 Max crashes.
But it was Walt Disney that led the Dow industrials index today as it popped 3%. It benefited from a Barclays upgrade on the stock to overweight. The media giant is up 32% thus far this year.
3M and Intel were the worst Dow Jones laggards on the stock market today. 3M fell 1.8% while Intel slipped 1.7% amid China worries.
Bill Ackman AI Stock Eyes Entry
Famed billionaire investor Bill Ackman is one of the world's top hedge fund managers. One of the stocks held by his Pershing Square investment firm, Google-parent Alphabet, currently hovers near a buy point after a powerful run over the past 12 months.
Google stock is one for your watchlist as it eyes an undefined consolidation pattern with an entry of 153.78, MarketSurge analysis shows. The stock finished the day well off session lows as it slipped 0.5% Monday.
Along with Ackman, Big Money certainly seems to see a lot of potential in Google stock, with its Accumulation/Distribution Rating coming in at B-. In total, funds hold 41% of shares.
Google stock has been on a tremendous run over the past 12 months. Friday's closing price of 150.77 means it rallied 43% off its level at the same time a year ago.
While it is best known for its dominance of search, Alphabet is also an AI play. Google's Gemini is seen as a chief rival to Open AI's ChatGPT.
Magnificent Seven: Tesla Rallies Despite Downgrade
The other so-called Magnificent Seven stocks had mixed luck on the stock market today.
Tesla reversed higher as it gained 1.1%. This was impressive given that Mizuho Securities downgraded the stock from buy to neutral. It also lowered its price target to 195 from 310.
Leaderboard stock Nvidia also shined, rising 0.8%. The AI play remains extended from its most recent buy point and is near all-time highs. Amazon.com also had a decent inning as it rose 0.5%.
But Meta Platforms and Microsoft both fell more than 1%. And Apple saw a rally attempt fade as it lost 0.8%.
Donald Trump Stock Soars Ahead Of Change
It's been a wild few days for Donald Trump stock Digital World Acquisition.
The Trump-linked special purpose acquisition company reversed lower Friday after shareholders voted to approve the long-expected merger with Trump Media & Technology Group.
However, the stock was in rally mode again on the stock market today. It surged amid the news the former president had the size of his bond slashed for his New York fraud case. A judge cut the bond to $175 million from $454 million as Trump tries to appeal the civil business fraud judgment.
Digital World closed just off its highs for the session as it skyrocketed 35.2%. It easily recaptured the 50-day moving average and is also now clear of its 21-day and 10-day lines.
The stock has made strong gains as Trump's push to gain his party's nomination for president gained momentum. The stock is up 185% thus far this year, and has an also-strong lift of 28% in the last four weeks alone.
Starting tomorrow, Digital World will start trading under the ticker symbol DJT and under the moniker Trump Media & Technology Group.
Stock Market Today: Bitcoin Moves Above $70,000
Bitcoin was back in rally mode Monday amid recent declines. It was trading near 24-hour highs after moving back above the $70,000-per-token level. It was trading for just under $71,000, according to CoinDesk.
The well-established Grayscale Bitcoin Trust soared 11.2%, while BlackRock's spot bitcoin ETF, the iShares Bitcoin Trust rallied 11.4%.
Other bitcoin stocks also rose. Coinbase jumped 9.5% while Riot Platforms popped 9.1%. IBD 50 name CleanSpark did even better as it rocketed 19.9%.
Outside The Dow Jones: 3 Stocks Near Buy Points
A number of stocks worth watching in the stock market today are nearing entries.
Insurance giant Allstate is in a buy zone after clearing a flat base with an ideal entry point of 168.05, according to MarketSurge analysis. The pattern is of the second-stage variety, a bonus.
The stock is in turnaround mode, with the firm returning to profitability in each of the past two quarters. Analysts see profits soaring around 1,200% in 2024 before slowing to still-impressive growth of 30% in 2025.
Badger Meter is in a cup-with-handle base with an ideal entry of 164.81. This is a first-stage pattern. While overall performance is strong, earnings performance is the standout. Earnings have grown an average 39% over the past three quarters.
The stock is a member of the highflying industrial machinery industry group. The company manufactures residential and commercial water meters.
Ares Management is another one to watch as it forms a flat base with an ideal buy point of 139.40. It closed virtually flat on the stock market today after getting support at its 21-day exponential moving average.
Overall performance is very strong, with its IBD Composite Rating coming in at 95. Earnings performance is particularly strong too, with Ares stock holding an EPS Rating of 97.
Please follow Michael Larkin on X, formerly known as Twitter, at @IBD_MLarkin for more analysis of growth stocks.
