The Dow Jones Industrial Average made gains even as key components Apple and Microsoft lagged. Icahn Enterprises, which is led by legendary investor Carl Icahn, exploded after he made moves to shore up the business. DraftKings helped the IBD 50 outperform.
A number of stocks attempted breakouts amid the generally positive action. Flowserve, Oceaneering International and Expedia were all testing entries.
Treasury yields were mixed as Wednesday's consumer price index looms. The 10-year yield fell nominally but was virtually flat at 4.01%, while the two-year yield dipped 6 basis points to 4.87%. The yield curve remains inverted.
Nasdaq Rallies As Small Caps, IBD 50 Jump
The Nasdaq rallied out of the red as indexes closed near session highs. It turned in a gain of 0.2%. IBD Sector Leaders stock Zscaler was a top performer here, closing up 7.7%.
The benchmark S&P 500 also fought its way out of negative territory to gain 0.2%. Solar stock Enphase Energy did well here with a gain of 5.6% but remains in a deep decline.
The S&P 500 sectors closed mixed. Industrials and health care were the top performers. Utilities and communication services were the worst laggards in the stock market today.
Small caps impressed, with the Russell 2000 rising more than 1%. But it was growth stocks that really gave the bears a bloody nose, with the Innovator IBD 50 ETF surging 2.8%.
Dow Jones Today: Microsoft, Apple Stock Lag As Index gains
The Dow Jones Industrial Average fared best out of the major indexes, rising nearly 211 points. This translates to 0.6% lift, and snapped a three-day losing streak.
Microsoft stock had a tough session, dropping 1.6%. The stock undercut the 21-day exponential moving average and is slipping toward its fast-rising 50-day moving average. Despite the dip, MSFT stock remains up a phenomenal 39% so far in 2023. Only Verizon Communications fared worse in the Dow, falling 2.1%.
Apple stock was also struggling on the Dow Jones today, falling more than 1%. It found support at the 21-day exponential moving average, MarketSmith analysis shows. IBD research has found the biggest stock market winners tend to find support at this key level while making big moves. AAPL stock remains up nearly 51% so far this year.
Meanwhile, Intel was the top stock on the Dow Jones, jumping 2.8%. Amgen popped by a near-identical amount.
Carl Icahn Stock Explodes Amid Debt Moves
Icahn Enterprises stock soared 20.2% after the company confirmed the legendary investor had moved to amend loan agreements and untie his personal loans from his company's shares.
The billionaire, who owns about 85% of the company, had previously pledged around 60% of his shares as collateral, according to The Wall Street Journal.
The stock was given a scalping after short seller Hindenburg claimed in a research note in early May that Icahn Enterprises had "inflated" the value of its assets. It also alleged money had been taken in from new investors "to pay out dividends to old investors."
They claimed the Wall Street legend had "made a classic mistake of taking on too much leverage in the face of sustained losses."
IEP stock was boosted after it emerged Icahn had renegotiated loans with banks, addressing some risks highlighted by Hindenburg.
"On July 10, 2023, Carl Icahn and certain of his affiliates entered into a three-year term loan agreement with certain bank lenders, which amends and restates previous loan agreements with the lenders and consolidates all borrowings of Mr. Icahn," the firm said in an SEC filing. "Neither Icahn Enterprises L.P. ("IEP") nor any of its subsidiaries is a party to the Loan Agreement or the previous loan agreements."
Icahn Industries own a number of businesses across a variety of industries, including Trump Entertainment Resorts and aftermarket automotive chain Pep Boys.
Despite the move IEP stock remains down nearly 33% so far in 2023. Nevertheless, it managed to smash its way through the 50-day moving average.
DraftKings Stock Scores A Win
Leaderboard stock DraftKings was cheering another victor as it continued to drive higher Monday. Its jump of nearly 8.3%% saw DraftKings stock surpass its 20% profit goal from a 23.75 trendline buy point.
It is now more than 14% above the 10-week moving average, where support last week created another entry.
DKNG has been soaring since Oppenheimer raised its price target to 36 from 30 and maintained its outperform rating last week.
The Boston-based sports-gambling firm went public back in April 2020. DraftKings still hasn't turned a profit, and analysts expecting that to continue until 2026.
DraftKings stock ranks fourth in IBD's Leisure-Gaming/Equip industry group. It has gained more than 150% so far in 2023, and is an IBD 50 company.
Outside Dow Jones: Three Stocks Test Entries
With the market in a confirmed uptrend it is key to keep a close eye on any breakouts.
Flowserve is in a buy zone after clearing a 37.56 cup with handle entry Monday. Volume was below average, a flaw.
The engineering pump maker is a strong all-around performer, with its IBD Composite Rating a near-perfect 98.
Oceaneering International is trading just below its buy point after earlier clearing a cup-base entry of 22.26. Volume was well above average here.
The offshore oil & gas industry services provider is in the top 4% of stocks in terms of price performance over the past 12 months.
Expedia also sits just below its entry after earlier clearing a cup with handle buy point of 114.37.
Big Money has been standing pat on the stock of late, but 62% of its shares are held by funds, according to MarketSmith data. Volume was mediocre Monday.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more stock market and growth stock analysis.
