The Dow Jones Industrial Average closed lower Monday despite Microsoft rising ahead of its artificial intelligence event. Fellow AI stock Nvidia popped following some bullish analyst calls ahead of earnings. And China electric-vehicle maker Li Auto skidded along with rival Tesla on the stock market today.
Other stocks making moves included Hims & Hers Health, which soared above an entry following plans to expand its weight-loss offerings. Several more stocks attempted breakouts, such as Abercrombie & Fitch, Archrock and Valaris. Robinhood Markets and Netflix also managed to clear buy points.
Stocks ended the day mixed as they looked to keep their rally going. The Dow Jones index slipped further into negative territory in afternoon trading as it fell 0.5%.
The Nasdaq composite, however, climbed 0.7%. Micron Technology was a top performer in the composite, rallying 3% after Morgan Stanley upgraded the stock from underweight to equal weight. It is trading just below a cup-base entry of 130.54, MarketSurge data shows. Moderna fared even better as it surged more than 6%.
Meanwhile, the S&P 500 added 0.1%. Norwegian Cruise Line sailed more than 7.5% higher while rival Carnival also stood out with a gain of more than 7%. Electronics contract manufacturer Jabil was also strong as it rallied more than 5%.
Stock Market Today: These Sectors Impress
The S&P 500 sectors were mixed. Technology, industrials and communications services were the areas faring best. Energy, consumer discretionary and financials lagged most.
Small-cap stocks saw some progress fade, but the Russell 2000 still gained 0.5%. Growth stocks also pared gains, with the Innovator IBD 50 exchange traded fund up 0.6% on the stock market today.
Treasury yields inched higher. The 10-year yield was up three basis points to 4.45% and the 2-year gained two basis point as it rose to 4.85%.
Dow Jones Today: Microsoft Up, Caterpillar Wiggles Higher
On the Dow Jones index, Microsoft stock was up 1.2% on the stock market today. The AI leader is expected to announce new initiatives in the space at its Build 2024 event, which kicks off Tuesday. The Dow Jones software giant will be looking to maintain its momentum following Google's I/O developer conference.
Among other Dow stocks, Caterpillar fared best, however, as it rose 1.8%. Apple and Boeing were also top performers as they gained nearly 1% each.
JPMorgan Chase was down the most on the blue-chip index, finishing the session down 4.5%. Cisco Systems also lagged as it dipped more than 2%.
Health Stock Soars On Obesity Move
Outside the Dow, Hims & Hers Health gapped up past a 17.16 cup-base entry and is now extended. It closed well off session highs though, despite rocketing 27.7% higher.
The telehealth company, which sells medications online, catapulted on news it is the latest health care firm to expand its weight-loss offerings. The firm is introducing access to compounded GLP-1 injections. This market is currently led by Novo Nordisk and its Ozempic and Wegovy products.
The new offering will further the scope of a weight-loss program Hims launched late last year.
The stock broke out in massive volume and its relative strength line hit fresh highs. Overall performance is solid, but not ideal, with its IBD Composite Rating coming in at 85 out of a best-possible 99.
China EV Firm Li Auto Slides, Tesla Stock Dips
Li Auto was spanked on the stock market today after missing earnings views. It was also punished for issuing a disappointing outlook. The stock was off lows for the day, but still fell 12.8%. It lost ground on the 50-day moving average and dipped to its lowest point since March 15, 2023.
The firm earned 17 cents per share in U.S. American Depositary Receipts, down 10.5% from 19 cents a year earlier. Wall Street had expected 24 cents. Revenue was in line with views.
Li Auto expects second-quarter deliveries of 105,000-110,000 vehicles, below analyst estimates. Revenue should be $4.1 billion-$4.3 billion, up 4%-9% vs. a year earlier. But Wall Street expected $5.17 billion.
U.S. rival Tesla closed off session lows but still gave up 1.5%. The so-called Magnificent Seven stock has fallen nearly 30% so far this year.
Nvidia Stock Pops Amid These Calls
Nvidia stock ended near session highs heading into the close as it rose 2.5% on the stock market today.
It got a boost amid a flurry of price-target hikes. Baird upped its target from 1,050 to 1,200, while Susquehanna raised its goal to 1,100 from 1,050. Further, Barclays adjusted its price target from 850 to 1,100.
Nvidia is in a buy zone after clearing a 922.20 cup-with-handle entry. The buy zone runs up to 968.31
This is a crunch week for the artificial intelligence stock with earnings due Wednesday. Nvidia is a member of the prestigious IBD Leaderboard list of top stocks.
Stock Market Today: IBD Industry Groups
Investor's Business Daily industry groups offered a deeper insight into the broader action.
Semiconductor equipment plays, data storage firms — which were bolstered by outperformance from Micron Technology — electronics contract manufacturers and database software firms were among the strongest groups. Coal stocks also burned brightly.
In contrast, food wholesalers, specialty retailers, diversified insurers and discount retailers all underperformed on the stock market today.
Outside Dow Jones: Abercrombie & Fitch Tests Buy Point
Abercrombie & Fitch closed in buy range after clearing a cup-without-handle base with an entry at 140.28. This is still an early-stage pattern, despite the fact the stock is up 64% year to date. IBD research has found early-stage bases are more likely to net big returns for investors.
The stock has an IBD Composite Rating of 97 out of 99. This puts it in the top 3% of issues tracked by IBD. Abercrombie & Fitch is extending its turnaround, with EPS growing 267% in the most recent quarter.
Archrock has moved above a cup-with-handle entry of 20.66. This is a first-stage pattern, a bonus. The energy infrastructure play focuses on midstream natural gas compression.
Archrock is among the top 5% of issues in terms of price performance over the past 12 months. It also boasts perfect IBD Composite and EPS Ratings.
Texas offshore drilling contractor Valaris tested a saucer-with-handle buy point of 77.09. The relative strength line is spiking. Valaris reported an eye-popping 775% increase in EPS last quarter.
Archrock, which provides natural gas services to the oil industry has an IBD Composite Rating of 91, out of 99. Archrock earnings grew by an outstanding 160% in the most recent quarter, according to IBD MarketSurge.
Stock Market Today: Robinhood And Its Merry Breakout
Robinhood Markets closed in a buy zone after clearing a cup-base buy point of 20.55. Robinhood stock has been rallying solidly after briefly dipping following earnings.
The brokerage stock recently moved back above the 50-day moving average. It is also above the shorter-term 10-day and 21-day lines.
Robinhood stock is also seeing its relative strength line drive higher on the stock market today, which adds further credibility to the breakout. It now sits at fresh highs, with a bullish blue dot appearing on its daily chart.
BofA Securities recently upgraded Robinhood stock from underperform to buy, saying retail investors are becoming more active. Its price target was boosted to 24, up from 14.
Big Money investors have been buying up the stock of late, with its Accumulation/Distribution Rating coming in at B.
Other stocks clearing entries included Netflix, which is above a cup base buy point of 639. This is a fourth-stage base.
Overall performance is very strong for the streaming giant. It holds a best-possible IBD Composite Rating of 99.
Please follow Michael Larkin on X, formerly known as Twitter, at @IBD_MLarkin for more analysis of growth stocks.
