The Dow Jones Industrial Average rallied out of the red to set a record high Monday even as Boeing fell amid heavy job cuts. Warren Buffett-led Berkshire Hathaway increased a holding while famed investor Cathie Wood unloaded a big winner. And Nvidia helped propel the Nasdaq higher on the stock market today as it eyes an important achievement.
Stocks ended the day near session highs. The Dow Jones Industrial Average started out in the hole, but reversed higher and jumped 201 points for the day. This equates to a gain of 0.5% and a fresh closing high. Apple, Travelers Cos. and McDonald's outperformed.
The Nasdaq composite was off session highs but remained up nearly 1%. It sits more than 5% above its 50-day moving average and less than 200 points from its all-time high. Arm continued to build up steam in the tech-heavy index, rising nearly 7%. Marvell Technology also outperformed with a gain of 5%.
Stock Market Today: Tech Shines As Energy Lags
The benchmark S&P 500 gapped up to also hit another record high as it popped 0.9%. Utilities play Vistra and Qualcomm were strong here. Vistra rallied nearly 6% while Qualcomm gained close to 5%.
The S&P 500 sectors were nearly all positive. Technology and utilities were the best performers while energy was the only area in negative territory.
Volume fell on both the Nasdaq and the New York Stock Exchange compared with Friday, according to early data. Breadth was solid though, with gainers outnumbering decliners by less than 4-to-3 on the Nasdaq and more than 4-to-3 on the NYSE. A total of 232 stocks hit 12-month highs on the NYSE while 305 did the same on the Nasdaq.
Small caps reversed higher, with the Russell 2000 rising 0.7%. Growth stocks were off highs, but the Innovator IBD 50 exchange traded fund was still up 0.8%. It now sits nearly 7% above its 50-day moving average.
03:07 p.m. ET
Industry Groups: These Chip Plays Shine
The relative performance of Investor Business Daily's 197 industry groups offered a more in-depth perspective of the action on the stock market today.
The chip equipment group — which includes the likes of ASML and KLA — was in front. Cable stocks, desktop software plays and wholesale electronics companies were all having strong sessions too.
Other groups that outperformed included building maintenance and services firms, wireless telecom stocks and water supply utilities.
By contrast, the discount retailers group (whose members include Dollar General and Dollar Tree), toy companies, foreign banks, and oil and gas field services firms were all lagging.
Meanwhile, yields came in mixed. The 10-year Treasury note stood flat at 4.1% while the 2-year dipped five basis points to 3.95%.
02:09 p.m. ET
Magnificent Seven: Nvidia Shines, Eyes Record
The so-called Magnificent Seven group of stocks mostly made gains on the stock market today.
Nvidia stock was up nearly 3% and is closing in on a 140.76 buy point. It got a boost after TD Cowen reiterated the stock as a buy and named it a "top pick."
Leaderboard stock Nvidia is currently the world's second-largest company by market cap at $3.397 trillion. If it continues to build on its gains it could surpass current number one Apple, which sits at $3.5 trillion.
Outside of Nvidia, Apple was actually faring best among the Magnificent Seven as it rose more than 1%. Google-parent Alphabet and Microsoft turned in similar gains.
Tesla and Meta Platforms also were each up nearly 1%. E-commerce giant Amazon lagged with a dip of 0.6%.
The Roundhill Magnificent Seven exchange traded fund rose more than 1% Monday. So far in October it holds a slight loss of 0.3%, but it is clear of its major moving averages.
Stock Market Today: Cooked Goose Flashes Sell Signal
One stock that has been disappointing of late is Canada Goose
The clothing stock fell more than 7% in heavy volume and has fallen by a similar amount year to date.
It triggered a sell signal by undercutting the important 50-day moving average. The stock already had a bearish look though, with its 50-day line sitting below its 200-day moving average.
The stock has a poor Relative Strength Rating of 25, which puts it in the bottom quarter of stocks in terms of price performance over the past 12 months.
12:32 p.m. ET
Warren Buffett Hikes Sirius Stake, Stock Pops
There are few money managers followed as closely as legendary value investor Warren Buffett. And the Oracle of Omaha has been on maneuvers once again, with his firm Berkshire Hathaway raising its stake in Sirius XM.
The company, which Buffett has led since 1970, bought around 3.6 million shares in the satellite and online radio company last week.
This has increased Berkshire's holdings in the firm to more than 108 million shares, an SEC filing showed.
Sirius XM stock was in rally mode Monday, jumping nearly 9%. It remains below its 50-day moving average but is nearing a test of the downward-trending line.
Despite this, Sirius stock has taken a pounding so far in 2024. It is now down more than 50% year to date.
These Stocks Test Buy Points
A couple of issues were testing buy points on the stock market today amid the generally positive action.
Columbia Banking System is in a buy zone above a 27.08 entry on its weekly chart, according to MarketSurge analysis.
Performance is strong, but not ideal, with its IBD Composite Rating sitting at 89 out of 99. Its Relative Strength Rating comes in at 89 also.
Funds have been heavy buyers recently, with its Accumulation/Distribution Rating coming in at A-. In total, funds currently hold 61% of shares, according to MarketSurge data.
Eaton is in the 5% buy zone above a consolidation entry of 345.19, MarketSurge analysis shows. This is a midstage pattern, which is neutral.
The diversified operator has an EPS Rating of 94 out of 99. The firm is a power management play, and operates in the electrical, aerospace and mobility sectors.
10:45 a.m. ET
Boeing Stock Skids Amid Cuts, Profit Warning
There are few industrial behemoths bigger than Boeing. But the stock was falling again on the stock market today amid more negative news.
Last Friday the firm announced it plans cut 10% of its global workforce, roughly 17,000 jobs. In addition, it is delating the launch of its 777X jet. It rounded off a triple helping of disappointing developments by warning that third-quarter sales will come in well below analyst estimates.
Boeing stock was already pressured on labor woes, with a crippling strike hitting the firm after talks broke down.
The Dow Jones giant fell nearly 3% in early Monday trading. It had already been sitting at 23-month lows and is more than 9% below its 50-day moving average.
China e-commerce play PDD, which is domiciled in Dublin, Ireland, was one of the worst Nasdaq performers as it fell nearly 5%. It tumbled despite the communist country's finance minister Lan Fo'an announcing more stimulus measures over the weekend.
Stock Market Today: Flutter Rebounds On Upgrade
Gambling play Flutter took a pounding on Friday, ending the session down an eye-watering 8.8%. Crucially, it managed to find support above the 50-day moving average.
It was rallying back in early trade Monday, popping more than 3%. It has now moved back above a 226.40 entry, according to MarketSurge analysis.
Flutter got a boost on the stock market today after Wells Fargo analyst Daniel Politzer upgraded it from equal weight to overweight. He also hiked his target price from 224 to 295.
He said the stock was hit Friday to reflect a "near-worst case U.K. tax scenario," but he also said the firm should be able to withstand costly regulatory changes "better than smaller competitors."
Cathie Wood Unloads This Stock After Big Rally
A gambler once advised Kenny Rogers that "you've got to know when to fold them."
And it seems ARK Invest's Wood has taken those words of wisdom to heart, given she locked in some gains with a stock that's been on a rip-roaring run in 2024.
Her ARK Innovation ETF sold 142,619 shares of Robinhood Markets, which provides an electronic trading platform to facilitate commission-free trading in securities such as stocks and exchange-traded funds.
As of Friday's close, Robinhood stock had risen by over 106% for the year so far and it added to those gains today.
That was not the only move made by the fund on Friday. It also jettisoned 106,522 shares in Moderna.
Moderna is badly underperforming, especially compared to Robinhood. It has fallen more than 41% so far this year.
Stock Market Today: Three Near Entries
With stocks trading around highs it is a good time to be watching for stocks testing entries.
Computer networking play Radware is in the 5% buy zone above a consolidation entry of 23.05, MarketSurge analysis shows. This is an early-stage pattern, which is a bonus.
The stock has an EPS Rating of 93 out of 99. Analysts see per-share earnings rising 81% in 2024 and increasing 13% next year.
Big Money has been buying shares of late, with its Accumulation/Distribution Rating coming in at B+. In total, funds currently hold 46% of shares, according to MarketSurge data.
Celestica, Amalgamated Actionable
Electronic contract manufacturing stock Celestica is in the actionable zone above a consolidation buy point of 63.49.
The stock is an excellent all-around performer, with its IBD Composite Rating a best-possible 99. It also has a perfect EPS Rating of 99. This makes it of interest to those following the IBD investing methodology.
Finally, Amalgamated Bank was in the buy zone on the stock market today above a flat-base buy point of 33.24, according to MarketSurge analysis.
It too is strong all-around performer, and holds an IBD Composite Rating of 98. It sits near the summit of the Northeast banks industry group, which ranks 15th out of the 197 tracked by IBD.
Please follow Michael Larkin on X at @IBD_MLarkin for more analysis of growth stocks.
