The stock market remains mixed, with the Nasdaq in the lead and the indexes improving in the last hour. Nvidia stock rallied after three losing days; it reports quarterly earnings on Wednesday. Meanwhile, eyes will be on Fed Chair Jerome Powell on Friday.
Powell will make his annual speech at the Economic Symposium in Jackson Hole, Wyo., Friday morning.
The Nasdaq improved and was up 1.2% in afternoon stock market action. The Dow Jones Industrial Average also improved but was still down 0.2%. The S&P 500 rose 0.4%. The small-cap Russell 2000 was down 0.4% as it tries to hold above the 200-day moving average.
All three major indexes remain below their 50-day moving averages.
The Nasdaq 100-tracking Invesco QQQ Trust ETF improved and rose 1.3%. And the Innovator IBD 50 ETF was flat.
Volume on the NYSE and Nasdaq fell vs. the same time on Friday.
The benchmark 10-year Treasury yield rose 9 basis points to 4.34%. Meanwhile, China cut its one-year prime loan rate by 10 basis points to 3.45%, which was lower than the 15 basis points forecast in a Reuters survey. The iShares MSCI China ETF was down 0.7%.
Stock Market Action: Moderna Jumps, Johnson & Johnson Falls
Moderna rallied 10% in heavy volume on news it teamed up with Chinese biotech Carsgen Therapeutics on the development of a cancer vaccine. Moderna stock retook its 21-day line on the move but remains in a long downtrend.
Moderna is on track for its largest one-day percentage increase since Dec. 13, 2022, when it gained 19.6%.
Kenvue trimmed larger gains and is now up 1% on news that parent company Johnson & Johnson will offer its shareholders an exchange for Kenvue oversubscribed stock.
JNJ stock fell 2.1% and was the Dow Jones' biggest loser on Monday. Kenvue has well-known Tylenol, Listerine, Benadryl and Neutrogena brands and started trading on May 4.
Nvidia shares rose 6.5% and lifted back above the closely watched 50-day line. HSBC raised its price target to 780 from 600 and maintained its buy rating, while KeyBanc upped its estimate to 620 from 550 and held its overweight rating.
Palo Alto Networks jumped over 15% after an unusually timed earnings release late Friday. Its fiscal fourth-quarter earnings beat expectations while sales missed views. Earnings grew a healthy 80%, representing the third straight quarter of 80% growth or higher. Sales grew 26% and were in line with the 24%-32% range of the last eight quarters.
Shares reclaimed the 50-day moving average. The cybersecurity stock was the biggest gainer in the S&P 500 Monday morning.
VMware gapped up 5.1% after Broadcom got the green light by the U.K. for its acquisition of the software company. The deal still needs approval by the U.S. and China, but Broadcom expects the deal to close on Oct. 30. Broadcom shares advanced 4.1% on the news in stock market action.
IBD 50 stock Arista Networks gained 1.6% and is holding in the 5% buy zone that goes to 187.28. ANET stock broke out past a 178.36 buy point following Arista's earnings release on July 31.
Two Megacaps Among Monday's Winners
Other Movers: Tesla Rises After 6 Losing days
Tesla popped 5.7% as it tries to end a six-day losing streak. A Baird analyst gave some potential catalysts for the EV stock. The analyst has an outperform rating and 300 price target on TSLA.
Earthstone Energy gapped up 13% in heavy volume following news that the oil and gas exploration company agreed to be acquired by Permian Resources in an all-stock deal valued at $4.5 billion. Earthstone gapped above a 16.70 handle buy point in heavy volume. Permian shares gave back earlier gains and are now relatively unchanged on the news.
XPeng climbed over 9% after BofA Securities upgraded the Chinese EV stock to a buy rating from neutral and raised its price target to 22 from 16.30. Shares are finding support at the 10-week moving average, creating an aggressive entry.
Napco Security Technologies stock plunged 45% in huge volume after the company reported it found accounting errors, causing profits to be overstated for three quarters in its fiscal 2023. The stock is flashing a clear sell signal.
Follow Kimberley Koenig for more stock market news on Twitter @IBD_KKoenig.
