The stock market indexes improved in afternoon trading, with the Dow Jones Industrial Average and the S&P 500 near the day's highs. Investors will be waiting for Thursday's July inflation numbers, among other headlines this week.
The Nasdaq composite gained 0.3% in stock market action. The Dow led with a 1.1% increase, and the S&P 500 added 0.7%. The small-cap Russell 2000 was nearly unchanged.
Meanwhile, the Nasdaq 100-tracking Invesco QQQ Trust ETF climbed 0.4%. And the Innovator IBD 50 ETF reversed course to rise 0.2%.
NYSE and Nasdaq volume fell vs. the same time on Friday.
The benchmark 10-year Treasury yield rose 3 basis points to 4.09%.
The Street expects Thursday's July consumer price index and core prices gauge will rise 0.2%, according to Econoday's consensus. Year-over-year inflation is projected to rise to 3.3% from 3% in June, with core inflation projected to remain at the 4.8% level.
Friday, the stock market gets the July Producer Price Index. July prices are seen rising 0.2% from June with the year-over-year up 0.7% and core prices climbing 2.3%.
Stock Market Movers: Tesla Shares React To CFO News
EV maker Tesla fell 2.8% after the company reported that Chief Financial Officer Zachary Kirkhorn is stepping down after four years on the job. Kirkhorn joined Tesla in 2010 and became CFO in 2019. He will remain at Tesla through the end of the year to "support a seamless transition," according to the company.
The stock fell below its 50-day moving average, flashing a warning sign to investors. Shares are down nearly 18% since reporting second-quarter earnings on July 19.
Barbie doll and toy maker Mattel rose 4.3% after the Warner Bros. Discovery "Barbie" movie hit $1 billion in ticket sales since its July 21 release. Shares of WBD rose 3.2%.
Berkshire Hathaway rose 3.8% after Warren Buffett's holding company reported a 7% gain in Q2 operating profit Saturday morning, on 21% higher revenue to $92.5 billion.
Shares are above the 5% buy zone of a long cup-with-handle base with a 331.84 buy point. They are also above a 347.62 buy point of a four-weeks-tight pattern. The stock is at record highs, after rising past the previous record set in March 2022.
Elanco Animal Health popped nearly 6% after the company reported better-than-expected second-quarter earnings and sales and raised full-year EPS and revenue guidance. Shares are forming a cup-with-handle base.
IBD 50 cruise line stock Carnival surged 4.3% and retook its 21-day exponential moving average, as travel stocks try to regroup as a leading industry. Carnival competitor and IBD 50 stock Royal Caribbean stock gained 3.2%.
BioNTech Sinks, Takes Moderna With It
Cancer treatment stock BioNTech slid 7.7% in heavy volume after the company reported a Q2 earnings and revenue drop over last year's quarter. Vaccine maker and therapeutics stock Moderna fell 7.2% in sympathy with BioNtech.
IBD 50 and Leaderboard stock DraftKings was initially down 1% but reversed for a 0.5% gain Monday afternoon in volatile trading. Wells Fargo upgraded the sports betting platform to overweight from neutral and raised its price target to 37 from 28. In addition, Jefferies and JPM Securities upped their price targets.
IBD 50 stock Cloudflare dropped as much as 5.7% but recovered some of that after Guggenheim downgraded the cybersecurity stock to a sell rating from neutral with a 50 price target. The stock gained 6.9% in heavy volume on Friday after the company reported higher-than-expected second-quarter profit and revenue and raised its full-year earnings guidance.
However, shares have tried to break out past a 72 buy point a couple of times, only to be turned back.
Sovos Brands rallied over 24% on news that Campbell Soup will acquire the packaged food company for $23 per share in cash. The move lifted Sovos stock to an all-time high in huge volume. The relative strength line hit a 52-week high, shown by the blue dot on the MarketSmith daily chart. Campbell Soup stock dipped 1% on the news.
AI Stock Tanks
AI cloud stock Upstart Holdings sank over 12% ahead of Tuesday's second-quarter earnings report. The stock fell below its 21-day exponential moving average, which had been trending sharply higher along with the stock's run.
Meanwhile, Tyson Foods shares tumbled 5.2% after the meat and packaged food company missed June-quarter earnings and sales estimates.
Arcurtus Therapeutics trimmed earlier losses and is now down 1.3% ahead of its Q2 earnings report after the market close Monday. The early move triggered the 7% sell rule from the 33.80 buy point of a cup base.
DaVita increased 4.5% after UBS upgraded the kidney dialysis and lab services stock to a buy rating from neutral and raised its price target. The stock is extended from the 103 buy point of a flat base.
Other Stock Market Action: Sage Sells Off
Sage Therapeutics sold off 52% in huge volume on news the Food and Drug Administration approved its postpartum depression drug zuranolone, codeveloped with Biogen. But the FDA also issued a Complete Response Letter saying the drug was not effective in treating major depressive disorder. Biogen shares pulled back 0.2% on the news.
Follow Kimberley Koenig for more stock market news on Twitter @IBD_KKoenig.
