The Dow Jones Industrial Average and other major indexes held on to gains during afternoon trading Monday as Federal Reserve Chairman Jerome Powell remained noncommittal on interest rate cuts. Meanwhile, Trump Media & Technology held a good portion of its winnings on the stock market today following Saturday's assassination attempt on former President Donald Trump and his selection Monday of a running mate.
The Dow Jones index improved from the day's lows and increased 0.5%, gaining more than 200 points on its way to another record close and well past the psychological level of 40,000.
The S&P 500 climbed 0.3% Monday and was on its way to a record close, but fell just short. Meanwhile, the Nasdaq ended the day up 0.4%.
The small-cap Russell 2000 outperformed the major indexes once again, surging 1.8% on the stock market today. The Russell 2000 made its fourth-straight gain, up nearly 8% in that time. It would be the largest four-day rally for the small-cap benchmark since November 2020, according to Dow Jones Market Data.
Volume was lower on the Nasdaq and the New York Stock Exchange vs. the same time Friday.
Trump Stock Soars; BlackRock Has Trump Twist
Trump Media & Technology Group, the parent of Truth Social, gapped up more than 50% in heavy volume before trimming gains to 31.4% at the close.
The surge comes after Saturday's failed attempt on the former president's life. Trump also finally made his selection of Sen. J.D. Vance, R-Ohio, as vice presidential candidate just as the Republican National Convention was getting underway in Milwaukee.
The Trump stock reclaimed its 50-day moving average at one point on the stock market today but finished just below it. The stock experienced its largest intraday increase since March 26, when it rose as much as 58.9%, according to Dow Jones Market Data.
Further, BlackRock, the world's largest asset manager, said it ran an ad in which the Trump shooter appeared, according to an emailed statement to Reuters.
"In 2022, we ran an ad featuring a teacher from Bethel Park High School, in which several unpaid students briefly appeared in the background, including Thomas Matthew Crooks," BlackRock said.
BlackRock fell 0.6% after reporting better-than-expected second-quarter profit but falling short on revenue.
Updated 3:32 p.m. ET
Powell Coy About Interest Rates
Fed Chair Powell said Monday inflation and economic activity had slowed in line with the central bank's expectation. But he didn't give an indication on whether the data would warrant a rate cut at the Fed's July meeting.
"I'm not going to be sending any signals one way or another on any particular meeting. We're going to make these decisions meeting by meeting," Powell said during a question-and-answer session at a meeting of the Economic Club in Washington, D.C.
Warren Buffett Stock Breaks Out
Warren Buffett's Berkshire Hathaway Class B shares jumped 2% breaking past a 430 buy point out of a flat base that lasted 20 weeks. The stock's buy zone stretches to 451.50. Shares are on track for a five-day winning streak as the conglomerate reached a record high Monday.
Federal Signal notched a gain of more than 4% as it broke out of a flat base. Shares were in a base-on-base formation. Federal Signal stock hit the 92.90 buy point and is in the buy range up to 97.55. Federal designs, manufactures, and sells safety and security products and solutions for first responders, governmental and industrial customers.
PACS Group surged nearly 6% to break out of a flat base with a 31.76 buy point. The stock started trading on April 11. Its relative strength line hit a 52-week high on the stock market today.
Updated 1:59 p.m. ET
Breadth Continues To Widen
The iShares Russell 2000 exchange-traded fund added another 1.8%, following strong days on Thursday and Friday in heavy volume. Shares broke out of a cup-with-handle base with a 209.77 buy point on Thursday and are in a buy zone up to 220.26. The stock also hit a 52-week high on Monday.
The First Trust Nasdaq-100 Equal Weighted Index Fund gained 0.1% and is in a buy zone of a cup-with-handle base up to 130.39. Shares reached a 52-week high on Monday, although in lighter-than-average daily volume.
Breadth was positive among stocks experiencing heavy volume — 758 up vs. 153 down, according to MarketSurge. Advancers beat decliners on the New York Stock Exchange by nearly 2 to 1. The ratio was around 7 to 4 on the Nasdaq.
As investors have been rotating out of Big Tech names, sectors including homebuilders and home retail stocks, software, steel-and-alloys and building construction have found new interest.
IBD 50 stock Axos Financial popped more than 6% and broke out of a cup base. With a 63 buy point, its buy range extends up to 66.15. The bank and financial firm is on track for a five-day winning streak as it reached a 52-week high on the stock market today. Axos Financial plans to report second-quarter earnings results on July 30.
Updated 12:19 p.m. ET
Market Continues Rotation
The market continues a rotation in which megacap techs that led this year have cooled off while value, small-cap, rate-sensitive and other stocks are back in favor.
Reflecting the move away from major techs, Invesco S&P 500 Equal Weight ETF, up 0.5%, is on track for its first record close since March 28. A four-day jump has added 3.5% to the equal-weighted index. It's the best four-day stretch since Dec. 14, 2023.
Several Breakouts In Stock Market Today
TechnipFMC broke out of a flat base with a 27.30 buy point and is in a buy zone up to 28.67. The company makes systems used in oil and gas drilling under the ocean and on land.
Carpenter Technology rose more than 4% and broke out of a cup base with a 112.75 buy point. Shares are in a buy range up to 118.39. Carpenter specializes in alloy-based materials used in aerospace, defense, energy, consumer electronics and other industries.
Ouster catapulted around 10% and broke out of a cup base with a 14.17 buy point. Shares are now extended, on pace for a sixth-straight up day as it reclaimed the 50-day line. The relative strength line reached a 52-week high as shown by the blue dot on the MarketSurge chart. Ouster makes laser-based sensors for use in drones, autonomous driving and robotics.
Also acting strongly was IBD 50 stock Hut 8 which powered up more than 15% in sympathy with the rise in bitcoin prices. The company operates infrastructure for bitcoin mining.
Updated 10:40 a.m. ET
Stock Market Today: Netflix, TSM Among Upcoming Earnings
Investors await earnings results from Netflix, Taiwan Semiconductor and ASML this week. Also on the docket are Bank of America, Morgan Stanley and UnitedHealth Group.
Crypto Stocks Rally After Trump's Close Call
The price of bitcoin jumped nearly 5% to over $62,900 for the first time since the beginning of July. Bitcoin-related stocks rose in sympathy. Saturday's foiled attempt on Trump's life raised his odds of winning the election. The former president is viewed as more pro-crypto than President Joe Biden.
MicroStrategy, a large holder of bitcoin, soared around 9% in sympathy with the rise in bitcoin price. Further, the stock retook its 50-day line on the stock market today.
Cryptocurrency exchange platform operator Coinbase Global popped nearly 9% and reclaimed its 50-day line. Shares are in a late-stage base with a 283.43 buy point, or an early entry at 263.80.
Crypto-friendly online trading platform Robinhood Markets jumped more than 6%.
Stock Market Today: Magnificent Seven, Tesla Jump
Dow Jones stock Apple climbed nearly 2% and reached a record on the stock market today.
IBD 50 stock Nvidia inched up as its continues to hold up after some recent drops. Tesla jumped more than 5% as it also climbs back from an 8.4% drop on Thursday.
Google parent Alphabet rose around 1% on news it is near a deal to buy cybersecurity startup Wiz for about $23 billion.
Outside of Magnificent Seven names, SolarEdge tumbled more than 13% after the maker of solar power converters said it's cutting 400 jobs due to higher inventory and a drop in revenue. Shares have lost more than 70% this year so far.
Goldman Sachs bumped up 0.9% after the investment bank topped second-quarter earnings and sales estimates. Also, shares are in a 5% buy zone up to 495.05 of a flat base with a 471.48 buy point.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
