All three major indexes rallied to close at their highs of the day in stock market trading Monday, as the Dow finally woke up and joined the S&P 500 and Nasdaq on the gain train. Meanwhile, investors awaited a monstrous earnings week as a slew of tech leaders — including Microsoft, Apple, Meta Platforms and Google-parent Alphabet — all report in coming days.
Other closely watched names reporting this week include Amazon.com, Advanced Micro Devices and Novo Nordisk. Microsoft, Google and AMD report on Tuesday night, with Apple, Meta and Amazon due late Thursday. These giants could not only give insight into the tech industry, but could sway the market overall.
In the stock market today, the Dow Jones Industrial Average started to work up a head of steam and set a new all-time record with a 0.6% gain. The 30-stock blue chip index moved further above the 38,000 level after tapping a fresh high Friday.
The S&P 500 climbed nearly 0.8% and also set a new watermark, while the Nasdaq added 1.1% and closed at a 52-week high. The small-cap Russell 2000 climbed 1.7%.
Elsewhere, the Invesco QQQ Trust bumped up 1%, while the Innovator IBD 50 ETF outperformed the major indexes and rallied 2.1%.
Volume rose on the New York Stock Exchange and the Nasdaq vs. the same time on Friday, according to preliminary numbers. The 10-year Treasury yield shed 7 basis points to 4.09%.
The Federal Reserve will meet Tuesday and Wednesday. Although policymakers are not expected to change interest rates, their comments could offer hints about when rate cuts might start.
Stock Market Today: IRobot Tanks After Deal Is Dead
Amazon.com rose 1.3% on news the e-commerce giant is abandoning its plans to acquire iRobot, the maker of the robotic Roomba vacuum cleaner. Amazon is extended from its 5% buy zone, which reaches from a 145.86 buy point to 153.15.
IRBT fell 8.8% on the news, though it trimmed losses from earlier in the session. The stock had been sliding this month on word that the European Union could reject the deal due to anti-competitive concerns. IRBT stock had its largest decrease since Jan. 19, when it fell nearly 27%.
In other big-tech action, several Magnificent Seven stocks were on the move. Apple pulled back 0.4% in afternoon trading, while Nvidia gained 2.4% and Tesla strengthened and popped 4.2%. Tesla posted its largest one-day percent gain since Dec. 14, when it rose 4.9%. But shares are still having their worst month since December 2022, according to Dow Jones.
Among other Magnificent Seven stocks, Microsoft gained 1.4% and topped the 5% buy zone of a 384.30 buy point that reaches to 403.52. Shares hit an all-time high. The $3 trillion market cap stock is on SwingTrader and IBD Long-Term Leaders. Also, Meta rose 1.8% and Alphabet jumped 0.9%. Meta and Alphabet also are on the IBD Big Cap 20.
Outside the Magnificent Seven, Advanced Micro Devices added 0.3% while Novo Nordisk increased 0.9% ahead of the two companies' earnings reports later this week. Novo Nordisk, which was today's IBD 50 Stocks to Watch pick, has formed a four-weeks-tight pattern.
Modular Building Stock Soars On Deal News
Mobile modular building stock McGrath RentCorp gapped up 10.7% on news it will be acquired by rival WillScot Mobile Mini in a deal valued around $3.8 billion. MGRC reached an all-time high while WSC gained 1% on the news.
PDD plunged 8.2% after analysts at Morgan Stanley showed concern that its popular low-priced retail app Temu could be "cresting" in the U.S. The stock sank below its 50-day moving average. In addition, Chinese stocks showed weak action Monday.
The buy now, pay later fintech Affirm, surged 5.9% and reclaimed its 21-day exponential moving average. Shares reached a 52-week high on Dec. 27, then sold off to trade in the low 40s, where it currently sits. The company is expected to report its fiscal second-quarter earnings Feb. 8.
IBD 50 name SentinelOne surged 7%, extending past a 20% profit zone from a 21.95 buy point. The cybersecurity stock gapped up on Dec. 6, following the company's strong fiscal third-quarter earnings report. Management also gave a current quarter and fiscal 2024 revenue outlook that was ahead of views. Shares backed off from a 52-week high in late December but have rebounded.
Fellow IBD 50 name GigaCloud Technology plunged 11.6% in heavy trading, giving back all of Friday's 10% gain and then some. Shares are extended from an 18.60 buy point and have been volatile for weeks.
Chipotle Mexican Grill climbed 3.4% and reached an all-time high. Shares are extended from a cup-base buy point of 2,175.01. But the stock also formed a flat base with a 2,348.41 buy point and is breaking out above it today. The Mexican food restaurant chain is scheduled to release its fourth-quarter results on Feb. 6 after the market close.
Adobe tried to break out of a flat base with a 633.89 buy point, but failed. The graphics software stock closed below the entry point.
SoFi Surges On Surprise Profit
SoFi gapped up 20.2% in huge volume, following the fintech's surprise fourth-quarter profit and higher-than-expected sales. Shares reclaimed the 50-day line. The stock is on track for its largest one-day increase since July 31, when it rose 19.9%, according to Dow Jones Market Data.
ZIM Integrated Shipping gapped up 7.5% in heavy volume after Jefferies upgraded the shipping stock to buy from hold and raised its price target to 20 from 14.
American Airlines reversed lower by 1.3%. Citigroup upgraded the stock to buy from neutral and raised its price target to 20 from 14.
ZoomInfo Technologies gapped up 6.1% after BofA Securities upgraded the software maker to buy from neutral and raised its price target to 25 from 20.
Stock Market Today: Super Micro Rallies Again
Data center hardware supplier Super Micro Computer rose 4.5% ahead of its second-quarter earnings report, due after the market close. Shares surged on Jan. 19 after Super Micro raised its sales and earnings outlook for the quarter. Shares are extended from a 357 buy point. A handle provided a lower entry at 327.55 as well.
Aerospace products maker Woodward broke out of a flat base with a 140.72 buy point and is in a buy zone reaching to 147.76.
Flywire surged 3.9% after Morgan Stanley upgraded the stock to overweight from equal weight with a 27 price target. But the payments software stock is meeting resistance at its 50-day line.
Dollar Tree lifted 0.8% in afternoon trading. JPMorgan upgraded the low-cost retailer to overweight from neutral and raised its price target to 157 from 122. The stock retook its 21-day line and shows a handle entry at 145.09.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
