Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Investors Business Daily
Investors Business Daily
Business
KIMBERLEY KOENIG

Stock Market Closes Mixed As Small Caps Led The Day; Swiss Shoe Company Jumps

The major stock market indexes closed mostly lower on Monday as the last trading week of the second quarter got under way. The Russell 2000 Index closed higher after a five-day losing streak, while the Dow Jones couldn't quite get in the green.

The Nasdaq dropped 1.2%, as the indexes deteriorated in the last hour of trading. The Dow Jones Industrial Average inched lower by less than 0.1% to make a six-day losing streak. The S&P 500 lost 0.5%.

The Russell 2000 showed relative strength and rose 0.2%.

The Nasdaq 100-tracking Invesco QQQ Trust ETF fell 1.3%. The First Trust Nasdaq 100 Equal Weighted ETF trimmed 0.1%.

The Innovator IBD 50 ETF fell 1.5%, lagging the market indexes. NYSE and Nasdaq volume were lower compared with the same time on Friday, in preliminary numbers.

The 10-year U.S. Treasury yield shed 2 basis points to 3.72%. The CME FedWatch Tool showed over 76% odds for a quarter-point hike at the July Fed meeting.

Crude oil rose 0.6% to $69.58 per barrel. The price of bitcoin retreated 2.6% to $30,315.

Stock Market Action: Swiss Shoe Stock Jumps

Swiss-based footwear maker On Holding surged 2.9% and reclaimed its 50-day line. The stock has some powerful partnerships including retired tennis legend Roger Federer as well as some newcomers.

Analysts expect 80% earnings growth this year and 23% next year. The Leaderboard Leader Watchlist stock has gained over 80% this year so far.

CarMax sold off 5.8%, giving back more than half of Friday's 10.1% gain following its better-than-expected fiscal first quarter earnings report.

The stock is extended after clearing the 73.57 buy point of a cup-with-handle base.

Truist Securities raised its price target on the used-car retailer to 82 from 64 while keeping its hold rating. Meanwhile, RBC Capital raised its price target to 90 from 70 and maintained its outperform rating.

Pfizer slid 3.7% in heavy volume after reporting it will discontinue development of its weight loss drug lotiglipron. Instead, it will move ahead with a twice-daily pill called danuglipron. At least one analyst called it a setback for Pfizer, saying "It's not the best shot they had."

Cruise Line Stocks Sink

Carnival stock gapped down 7.6% in heavy volume despite reporting a smaller-than-expected loss and higher revenue for its May-ended quarterly results.

Its booking trends are bullish. Management expects over 100% occupancy for this year and 107% in the upcoming August-ended quarter. Occupancy rate can exceed 100% if cabins are booked with more than the two-person capacity, as in the case of parents including a child or two in their room.

IBD 50 stock Norwegian Cruise Line Holdings fell 4.5% while Royal Caribbean Group dropped 0.7% in sympathy with Carnival. Both stocks improved slightly from larger earlier losses.

Carnival stock had reached a 20% profit zone from a 12.62 buy point, but is now below that range. The stock is testing its 21-day exponential moving average. CCL is the biggest S&P 500 loser today.

Google parent Alphabet fell 3.3% after UBS downgraded the stock to neutral from a buy rating but raised the price target to 132 from 123.

The analysts expressed concern that Alphabet's AI features could negatively affect its advertising revenue. UBS projects $301.7 billion for full-year 2023 revenue, or about 6.7% over 2022.

GOOGL shares are trading around the 21-day line and are extended from a cup-with-handle 106.59 buy point.

Other Market Movers: AI Stock Plunges

Swiss-based biotech MoonLake Immunotherapeutics pared earlier gains, and closed up 77.6% in enormous volume on positive news on its skin treatment drug in a Phase 2 study.

WSFS Financial rallied 4.8% after D.A. Davidson upgraded the regional bank stock to a buy from a neutral rating and raised its price target to 45 from 38. The stock gapped up as it bounced off the 50-day line.

Uber Technologies popped 2.5% after Bernstein raised its price target to 50 from 45 and maintained its outperform rating on the ride-hailing stock. Uber stock is nearing the 20% profit zone from a 37.58 buy point and is IBD 50's biggest gainer today.

Cloud- and AI-software stock Intapp plunged 13.8% in heavy volume, sending it below its 50-day line. The break of support and fall of more than 7% from the 47.04 buy point are sell signals. There was no news on the company in today's wires.

Tesla Stock Gets Hit Again

Glucose monitor maker Dexcom fell 1.7% despite giving higher 2025 revenue guidance at its Investor Day on Friday. Shares are teetering around the 21-day line and below the 126.44 buy point of a flat base Dexcom cleared two weeks ago.

Moderna got a 1.6% lift after UBS upgraded the biotech to buy from neutral, but lowered its price target to 191 from 221.

IBD Leaderboard and IBD 50 stock Tesla shed 6.1% after another analyst downgrade. This time it was from Goldman Sachs, to neutral from buy with a higher price target of 248 from 185.

Shares of Tesla fell below the 20% profit-taking zone of a cup base with a 207.79 entry.

Follow Kimberley Koenig for more stock market news on Twitter @IBD_KKoenig.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.