The Dow Jones Industrial Average closed with a loss Monday as Walt Disney stock skidded amid news of a replacement for Chief Executive Bob Iger. Meanwhile, Nvidia touched new heights while fellow Magnificent Seven components Apple and Tesla saw mixed fortunes on the stock market today.
The Dow Jones Industrial Average saw early gains fade, backing off after it hit a record close Friday. Blue chips fell 344 points, which equates to a drop of 0.8%. Dow component Boeing popped amid strike deal hopes, but shares met with some resistance.
Outside of Boeing, UnitedHealth was among the better Dow performers as it rose 0.3%. Downside action was heavier, with Home Depot and American Express faring the worst in the index with declines of more than 2%.
Meanwhile, the Nasdaq composite managed a meager gain after wavering for most of the session. Super Micro Computer, Marvell Technology and Lululemon Athletica were among the best performers on the tech-heavy index. Warner Bros. Discovery underperformed, falling more than 3%.
Stock Market Today: Tech Stocks Shine
The benchmark S&P 500 skidded 0.2% and slipped back from last week's record close. Kenvue was a top performer as it jumped more than 5% on news that Starboard Value has taken a stake in the health products firm. Builders FirstSource and Monolithic Power Systems trailed with a drop of more than 5%.
The S&P 500 sectors were mostly negative. Only technology and energy were in positive territory. Conversely, real estate and health care lagged.
Small caps got mauled by the bears, with the Russell 2000 diving 1.6%. Growth stocks battled back from session lows, though the Innovator IBD 50 exchange traded fund ended the session down marginally.
Breadth was poor on the stock market today. Decliners outnumbered advancers by nearly 4-to-1 on the New York Stock Exchange and more than 2-to-1 on the Nasdaq. Volume was up on both exchanges vs. the same time Friday.
And while stocks gave up ground, Treasury yields soared. The 10-year Treasury note jumped 12 basis points to 4.19%.
Disney Falls As Iger Succession Plan Emerges
Disney said it is shooting to have a new replacement for CEO Bob Iger in place by "early 2026." It comes as the Dow Jones component announced Morgan Stanley Executive Chairman James P. Gorman will be taking over as Disney's chairman on Jan. 2. Gorman, who had already been chairing the Disney Board's Succession Planning Committee, will succeed incumbent Mark G. Parker.
"A critical priority before us is to appoint a new CEO, which we now expect to announce in early 2026," Gorman said in a media release. "This timing reflects the progress the Succession Planning Committee and the Board are making, and will allow ample time for a successful transition before the conclusion of Bob Iger's contract in December 2026."
Iger returned to the CEO role in November 2022 following the dismissal of his previous successor Bob Chapek, whose performance disappointed investors.
Disney ended the session down a fraction. It sits above its 50-day line, but below the 200-day moving average. Disney stock lags the S&P 500 for 2024 despite a year-to-date lift of less than 7%.
3:07 p.m. ET
Stock Market Today: These Industries Shine As Yields Spike
The vast majority of the 197 IBD industry groups were in negative territory Monday, though there were some outperformers.
Specialty retail stocks, heavy construction plays, gold miners and telecom infrastructure firms were among those making the strongest advances.
By contrast, media periodicals, cable stocks, solar firms and consumer electronics retailers lagged. The mobile home group, which includes the likes of Thor Industries and Champion Homes, also underperformed.
Boeing Soars, Hits Resistance Amid Labor Deal
Boeing stock took flight Monday as the aerospace giant and the International Association of Machinists and Aerospace Workers came to terms on a potential new contract.
If approved by workers, the deal would bring a crippling monthlong strike to an end. However, if it is rejected it could mean more pain for the defense stock. Standard & Poor's has estimated that Boeing is losing $1 billion a month due to the strike.
A vote on the proposal is expected Wednesday. Under the terms of the deal, workers get a 35% wage increase over the four-year span of the contract.
Boeing stock rallied sharply but was off highs heading into the close. It was up nearly 3%, but the stock is meeting resistance as it tries to retake its 50-day moving average, according to MarketSurge analysis.
If shares can overcome this and mount the key technical benchmark, it would be a positive step for the stock.
1:36 p.m. ET
Stock Market Today: More Stocks Test Buy Points
A couple of other issues were flirting with entries on the stock market today. Palo Alto Networks toyed with a consolidation buy point of 380.84. This is a mid-stage pattern, which is neutral. The security software play has a strong, but not ideal, IBD Composite Rating of 91 out of 99.
Palo Alto earnings are seen rising 11% this year before accelerating to 15% growth in 2025. Notable holders of the stock include the lauded Fidelity Contrafund (FCNTX).
TWFG, a recent initial public offering, is in a buy zone after clearing a cup-with-handle entry of 30.23. The insurance play is faring well in terms of price performance. This is reflected in its Relative Strength Rating of 89.
The Texas-based company operates a distribution platform for personal and commercial insurance. The stock started trading in July and its IPO price was 17, above the proposed range of 14 to 16.
12:23 p.m. ET
Magnificent Seven: Nvidia Hits Record After Bullish Call
The so-called Magnificent Seven were having a mostly negative start to the week, but Nvidia managed to buck the trend. The artificial intelligence leader hit a fresh all-time high amid a bullish Wall Street call.
The Leaderboard stock traded as high as 141.80, a split-adjusted record. While it gave some of this back, it remained up nearly 2% in recent action.
Nvidia stock is flirting with a 140.76 buy point, MarketSurge analysis shows. Shares got a boost after Barclays reiterated its overweight rating on the stock, and touted its artificial intelligence credentials.
Apple and Google-parent Alphabet were the only other members of the group in positive territory, though their gains were fractional.
Tesla was the worst laggard here as it dropped more than 1%. The stock, which reports earnings late Wednesday, is just under its 50-day moving average.
Meta Platforms, Microsoft and Amazon.com were also lower with dips of less than 1% each.
Stock Market Today: 3 Stocks Test Entries
Meanwhile, there were a number of breakouts despite the negative overall action.
Specialty financial services stock Marex is testing a flat-base entry of 26.03, according to MarketSurge analysis. Overall performance is very good, with the stock holding an IBD Composite Rating of 98. Earnings are a weak spot though, reflected in its Earnings Per Share Rating of 64 out of 99.
Institutions have been net buyers of the stock of late, with its Accumulation/Distribution Rating coming in at B+.
Financial software stock nCino briefly cleared a consolidation entry of 37.48. This is a first-stage pattern, a positive. However, it is around 16% above its 50-day moving average, meaning it is extended from this important benchmark.
Defense stock Loar briefly cleared a flat-base buy point of 80.79, though it has retreated back below this level. This is also a first-stage pattern.
IBD Research shows early-stage bases are more likely to succeed. Loar earnings are seen ramping up 69% next year, above the growth levels sought by investors following The IBD Methodology.
10:54 a.m. ET
Cigna Swoons On Humana Acquisition Talks
Health insurance plays Humana and Cigna had contrasting fortunes after Bloomberg reported the companies have restarted merger talks. According to Mizuho analyst Ann Hynes it is likely that Cigna will attempt to get the buyout of Humana over the line.
She said that the deal is reliant on the outcome of the forthcoming presidential election, and that she believes "the likelihood is high."
Humana stock ticked higher in early trade on the stock market today. In contrast, Cigna stock gapped lower, falling 4%.
It lost ground on the 200-day moving average after falling below the technical benchmark Friday, MarketSurge analysis shows.
Stock Market Today: Financial Software Play In Buy Zone
Finally, financial software stock Alkami Technology is in the actionable zone above a flat-base buy point of 36, according to MarketSurge analysis. Shares surged nearly 6% Monday.
One negative here is this is a fifth-stage base. Such later stage patterns are less likely to succeed, IBD research finds. However, the relative strength line is gaining traction.
The stock is an excellent all-around performer, with its IBD Composite Rating a near-ideal 98 out of 99.
Earnings growth has been strong of late, earning it an Earnings Per Share Rating of 80. This makes it of interest to those following the IBD investing methodology.
Wall Street expects earnings to soar 120% in 2025, according to MarketSurge data. It also resides in the top 8% of issues in terms of price performance over the prior 12 months.
Please follow Michael Larkin on X at @IBD_MLarkin for more analysis of growth stocks.
