The stock market weakened slightly in the past hour, with the indexes mixed in afternoon trading and off the highs of the day amid rising Treasury yields. Amazon.com showed strength on AI investment news.
The Nasdaq reversed from lows to be up 0.2% at 1:30 ET in stock market action. The Dow Jones Industrial Average dipped 0.1% and the S&P 500 added 0.1%. The major indexes remain below their 50-day moving averages.
The small-cap Russell 2000 crept up 0.6% but remained below its 200-day moving average.
Volume rose on the NYSE and fell on the Nasdaq vs. the same time on Friday.
The Nasdaq 100-tracking Invesco QQQ Trust ETF advanced 0.1%. The Innovator IBD 50 ETF climbed 0.4%.
The benchmark 10-year Treasury yield added 9 basis points to 4.52% and is at highs not seen in almost 16 years.
More inflation data takes the spotlight this week, with Friday's personal income and outlays report due from the Commerce Department.
Stock Market Action: Spotify Pilots New AI Feature
Home goods retailer Williams-Sonoma rallied over 9% in heavy volume, on news that two funds run by Leonard Green & Partners increased its stake to 5% in the company. Shares hit a 52-week high on Monday.
Streaming service Spotify Technology pulled back 0.9% on news it is piloting an AI-powered voice translation service for podcasts into Spanish, with French and German languages coming out in the next days or weeks.
The stock is in a cup-with-handle base with a 163.65 buy point.
IBD 50 stock ACM Research soared 6% after halting an aggressive sell-off from its short-lived 52-week high it hit on Sept. 6. Shares have found support at the 50-day moving average and are near the old 15.59 buy point of a cup base. ACM makes equipment that supports the chip industry.
Ford Motor climbed 1.7%. The company last week reached an agreement with the union that represents Canadian workers on a new labor deal. The pact includes a 15% pay increase over the next three year and improved pensions. The deal gave encouragement for progress in the U.S. United Auto Workers' strike at automaker facilities in the U.S.
Ford stock is testing resistance at the juncture of its 50-day and 200-day lines.
GE HealthCare Technologies rose 3.1% as it bumped up against its 21-day exponential moving average. The medical technology and diagnostics company was the biggest gainer on the S&P 500 Monday.
Amazon rose 1.7% on news it would invest up to $4 billion in artificial intelligence firm Anthropic to use its specialty chips for Amazon's AI software. The e-commerce stock is trading below its 50-day line after dropping sharply under the line on Thursday.
Stocks On The Move
Used-car retailer CarMax jumped 1.6% after Wedbush upgraded the stock to outperform from neutral and lifted its price target to 90 from 85. The stock is in a flat base with an 87.50 buy point.
AstraZeneca gained 1.5% after Jefferies upgraded the biotech to a buy rating from hold and raised its price target to 80 from 66.50. The stock is nearing its 50-day line, where it has met resistance.
Hollywood studios and the Writers Guild of America have reached a tentative agreement to end a writers strike after nearly 150 days. But there's still no deal with the actors union. Netflix gained 0.9% while Walt Disney pulled back 0.5%. Paramount slid 0.8%.
Apparel retailer Urban Outfitters shed 0.6% after Jefferies downgraded the stock to hold from buy and slashed its price target to 31 from 42. But the stock found support above its 200-day moving average.
Biotech Morphic lost over 33% in huge volume after BTIG cut the stock to neutral from buy.
Other Stock Market Action: Chinese EV Stocks Tumble
Chinese stocks felt pressure as struggling property developer Evergrande said it was not able to issue new debt because of an investigation into a real estate subsidiary.
Chinese EV stock Nio sold off over 2% in heavy volume, with Chinese stocks generally retreating. In separate news, Bloomberg reported that Nio is looking to raise around $3 billion from Middle East investors. But Nio denied the report.
Peer Li Auto sank over 9% in heavy trading. Meanwhile, Tesla reversed slightly higher and still held below its 50-day line. Tesla continues to form a cup-with-handle base.
Follow Kimberley Koenig for more stock market news on X, the platform formerly known as Twitter, @IBD_KKoenig.
