Major stock market indexes tried to blow off a U.S. debt rating cut by Moody's Investors Service and slowly ventured into positive territory in midday action. Meanwhile, Boeing soared on word of a possible thaw in its currently frozen China business and a new jet order from the Middle East.
After spending most of the morning with a deficit, the Dow Jones Industrial Average climbed into the black and was up 0.3%. The S&P 500 gained 0.1%. And the Nasdaq composite hovered around the break-even point, as did the small-cap Russell 2000 index.
The major indexes earlier took a hit after Moody's cut its outlook on U.S. debt to negative from stable late Friday, though it kept its rating at AAA. The rating service said "downside risks to the U.S.'s fiscal strength have increased and may no longer be fully offset by the sovereign's unique credit strengths."
The ratings service said the U.S. was without effective fiscal policy measures to reduce government spending or increase revenue. It also cited "continued political polarization" within the U.S. Congress that may hamper the government's ability to slow a decline in debt affordability.
Also in the stock market today, the Innovator IBD 50 exchange traded fund gained 0.7%. The Vanguard Mega Cap Index Fund dipped slightly.
Meanwhile, 10-year U.S. Treasury notes edged higher to 4.66%, while West Texas Intermediate Crude climbed nearly 1% to 77.88 a barrel.
Consumer price index numbers for October are expected Tuesday, with forecasters predicting a modest 0.1% increase from September. Excluding food and energy, economists project a 0.3% rise from September, and a 4.1% climb from October 2022. The producer price index and U.S. retail sales numbers are due Wednesday.
Boeing Jumps On China News, Jet Order
Aerospace giant Boeing floated more than 4% higher after it was reported that China may end its freeze on orders for the company's 737 Max aircraft. The government could unveil a commitment for more orders when President Joe Biden and China President Xi Jinping meet at the Asia-Pacific Economic Cooperation summit in San Francisco this week.
Boeing also said it received a $52 billion order for 95 of the company's 777 and 787 jets from Dubai-based Emirates airline. Boeing announced the deal at the Dubai Airshow. Emirates is getting 55 777-9 jets, 35 777-8 planes and is adding five more 787 Dreamliner aircraft to its stable.
Other big stock market movers included Monday.com, which bounced nearly 12% higher after it reported third-quarter earnings that trounced Wall Street views. Monday said profits were 64 cents a share on revenue of $189.2 million. Analysts expected earnings of 21 cents a share on sales of $182.4 million. For the current fourth quarter, Monday forecast revenue of $197 million vs. estimates of $195 million.
Tower Semiconductor turned losses into gains after it reported earnings early Monday. Shares fell more than 7% at one point in premarket action, but shares climbed nearly 2% in midday trading.
Stock Market: Companies Near New Highs
Among stocks that are near new highs in the market Monday, Microsoft flirted with a buy zone with a 366.78 entry in morning trades. The software giant is trying to emerge from a cup base, although it cleared an early entry at 346.20. Further, its Relative Strength Rating has reached a 95 out of a best-possible 99, and its relative strength line is at a new high.
Copart also dipped slightly but remained in a buy zone that it reached Friday out of a flat base. The stock's RS line also is at a new high.
Among companies trying to break out Monday was computer software designer PTC. Shares were emerging from a flat base with a buy point of 152.09. The stock's RS Rating hit 89.
Also, Camtek ventured above a 65.13 buy point out of a consolidation ahead of earnings, which are due Tuesday. The maker of optical inspection systems for chip developers has a highest-possible RS Rating of 99.
Stock Market: Companies In The News
Chipmaker Nvidia kept climbing in its buy zone Monday after unveiling the H200, its newest high-end chip for training artificial intelligence models. The company sees the graphics processing unit as an upgrade from the company's H100.
Exxon Mobil was up more than 1% after the oil giant announced plans to become a top lithium producer for electric vehicles. The company said it would start producing the material as early as 2027.
And Pfizer dropped more than 1% after it was reported the drug titan was looking to get in on the weight-loss market as revenue dissipates for its Covid treatments. Pfizer has an experimental obesity pill called danuglipron, according to CNBC. The weight-loss drug market currently is dominated by Eli Lilly and Novo Nordisk.
Magnificent Seven Stocks: Tesla Moves Higher
Among the so-called Magnificent Seven stocks, Tesla made the most meaningful move Monday, climbing more than 4% by midday. The stock was right at its 200-day moving average, a barrier it has struggled to clear since mid-October.
Meanwhile, amid Microsoft's slight loss and Nvidia's 1% gain, the only other Magnificent Seven stock to move higher was Facebook parent Meta Platforms. Meta was up roughly 1% by midday.
Among others on the list, Amazon.com was down fractionally as was Apple. Google parent Alphabet edged down as well.
