The Dow Jones Industrial Average powered higher as indexes closed with gains of more than 1%. Palantir Technologies soared while Tesla led the Magnificent Seven on the stock market today. Famed investor Cathie Wood loaded up on a plunging AI stock.
After a hard fall Friday, stocks fought back. The Dow industrials closed near highs. It rose nearly 500 points amid strength, which equates to a rise of 1.2%. Apple closed narrowly higher after erasing losses.
The Nasdaq composite ended near highs for the day, rising 1.2%. However it remains well below its 50-day moving average. Arm was the best-performing stock in the Nasdaq 100, up more than 6%.
The S&P 500 also caught a second wind in the final hour of trading, rising 1.2%. It is also trading below its 50-day line. The Invesco S&P 500 Equal Weight exchange traded fund rose 1% amid broad gains.
Stock Market Today: Growth Stocks Bash Bears
Volume was lower on the New York Stock Exchange and the Nasdaq compared to Friday, according to early data.
Breadth was solid though, with advancers outpacing decliners more than 2-to-1 on the NYSE and over 1.5-to-1 on the Nasdaq.
Another plus for the stock market today was that the S&P 500 sectors were mostly positive. Financials and industrials fared best. Communication services lagged.
The Russell 2000 rose 0.3% as the small-cap index tries to find support around the 2,100 level.
The Innovator IBD 50 ETF outperformed with a gain of more than 2%. The fund is still rooted below its 200-day moving average.
Cathie Wood Snaps Up AI Stock Amid Plunge
Some adventurous investors would have seen last week's pullback as a buying opportunity. That was the case with ARK Invest Chief Executive Cathie Wood, who snapped up Tempus AI stock on Friday.
Her firm, where she also serves as chief investment officer, snapped up more than 111,000 shares in Tempus for the ARK Innovation ETF.
Tempus, which had its initial public offering in June, carries a lousy IBD Composite Rating of 45. The stock has a 90 Relative Strength Rating. However, the stock fell nearly 6% Monday and has slid about 38% from its high of 77, reached on Aug. 22.
Tempus uses data and artificial intelligence to improve health care. It aims to help drug discovery and genomic sequencing.
The ARKK fund also bought nearly 89,000 shares in Recursion Pharmaceuticals but sold more than 50,000 Trade Desk shares and sold a tiny sliver of Twist Bioscience.
3:00 p.m. ET
Apple Stock Falls Despite iPhone 16, Watch Launch
One stock that was not faring well on the Dow Jones was Apple. It fell despite unveiling its new iPhone 16 models and other product updates at its "Glowtime" event. Its first unveil was the new Apple Watch, the Series 10, which boasts a larger screen. There were also some new AirPods.
But investors were keen to run the rule over the new iPhone 16. The iPhone 16 and its Plus model plus the iPhone 16 Pro and Max models were all unveiled. The new iPhone Pro models include the A18 Pro chip. This has been designed to power generative AI workloads and to maximize the benefits of the new Apple Intelligence offering.
AAPL stock was down more than 1% and trading near a one-month low. Apple stock trades just below its 50-day moving average and shows a consolidation entry of 237.23, MarketSurge analysis shows. But the stock appears to be forming a handle with a 232.92 buy point.
Palantir Pops Amid S&P 500 Nod
A trio of stocks were rallying on the stock market today amid news that they will join the vaunted S&P 500.
Palantir Technologies surged more than 13% and now sits well above its 50-day moving average.
The AI stock currently holds a best-possible Composite Rating of 99 from Investor's Business Daily. It has rebounded since getting support at its 200-day moving average on Aug. 5.
Computer hardware play Dell Technologies rallied 4% on news of its inclusion in the benchmark index. However, it still trades near its 200-day line. Its EPS Rating of 57 out of 99 is poor.
The third to join the list, insurance carrier Erie Indemnity, was up more than 1% on the stock market today but well of session highs. Shares are well-extended after previously hitting their 20% profit target from a 411.72 entry.
American Airlines was up nearly 4% despite losing its spot on the index. Bio-Rad Laboratories, which fell more than 2%, and Etsy, which was fractionally positive, also are leaving the S&P 500.
01:20 p.m. ET
Dow Jones Today: Boeing Stock Climbs
The outperformance of the Dow Jones Industrial Average was striking, with nearly all components in positive territory. It benefited from Boeing, the strongest member of the index, as it rallied nearly 4%.
The firm reached a labor deal that averted a potential strike. Nevertheless, the beaten-down aerospace giant remains about 7% below its 50-day moving average and is mired in a long-term downtrend.
Other names flexing their muscles on the Dow Jones today included American Express and insurance play Travelers.
Merck was the worst laggard, falling roughly 2% on the stock market today.
12:05 p.m. ET
Stock Market Today: Tesla, Nvidia Lead Magnificent Seven
The so-called Magnificent Seven stocks were having mixed fortunes Monday. Tesla stock was out in front as it rallied nearly 3%. But it remains below its 50-day moving average after falling below the benchmark Friday.
AI play Nvidia was also solid here, rising around 2%. The Leaderboard stock, which has an ideal EPS Rating of 99, is above its 200-day moving average but lags the 50-day line.
Amazon.com climbed more than 2% while Meta Platforms and Microsoft each recorded gains of just under 1%.
Google parent Alphabet struggled, falling nearly 1%.
Bitcoin Rallies, Crypto Stocks Gain
Bitcoin has been hit amid broad weakness, but rallied Monday. It was up nearly 2% as it traded at just over the $55,000 per coin level, according to CoinDesk. The digital currency retains a solid year-to-date gain of more than 24%.
Cryptocurrency stocks also made up some ground. Crypto exchange play Coinbase Global jumped more than 3%, but sits more than 23% below its 200-day moving average amid recent negative action.
Former IBD 50 member CleanSpark rallied more than 5%, but its 50-day moving average has now fallen below its 200-day line, a bearish signal known as the death cross. Fellow bitcoin miner Riot Platforms rose more than 3% on the stock market today
Marathon Digital was shining, rallying more than 8%. But it resides within the bottom 16% of stocks in terms of price performance over the past 12 months.
10:51 a.m. ET
Stock Market Today: Three Equities Show Strength Near Entries
While the stock market action has been challenging of late, another trio of stocks are showing strength near buy points. Tyler Technologies, General Dynamics and MGIC Investment are each moving toward near entries.
Tyler Technologies is near a flat-base buy point of 593.50, according to MarketSurge analysis. This is a second-stage base, which still counts as early.
All-around performance is strong for the information technology management play, which is reflected in the stock's IBD Composite Rating of 93 out of 99. Tyler is in the top 6% of issues in terms of price performance over the past 12 months.
General Dynamics is eyeing a flat base entry of 302.75. This is also an early stage pattern. The stock has an Earnings Per Share Rating of 84 out of 99. Analysts see earnings jumping 21% this year and rising a further 13% next year.
General Dynamics is a member of the highflying Aerospace/Defense industry group. Big Money has been snapping up shares lately, with its Accumulation/Distribution Rating coming in at B-.
Finally, MGIC Investment has also formed a flat base. The potential entry point here sits at 25.93. The relative strength line sits at fresh heights on its weekly chart, MarketSurge analysis shows.
The mortgage insurance stock boasts a Composite Rating of 93. On the stock market today, it sits among the top 7% of issues in terms of price performance over the last 12 months.
Please follow Michael Larkin on X, formerly known as Twitter, at @IBD_MLarkin for more analysis of growth stocks.
