The Dow Jones Industrial Average nearly wiped out its losses at the close Monday after President Donald Trump and Mexico's leader announced a deal to delay tariffs. Most Magnificent Seven names including Tesla and Nvidia remained lower, but Palantir Technologies neared an all-time high on the stock market today.
Stocks started the week on a bum note, but the Dow industrials — down 665 points at one juncture — touched positive ground in a stunning reversal. Blue chips ended the day down 122 points, or 0.3%. Apple and Caterpillar lagged most. IBM outperformed with a rise of 2%.
The Nasdaq composite finished down 1.2% after coming off lows. But the tech-heavy index finished below its 50-day moving average.
Temu parent PDD was one of the worst Nasdaq performers as it dropped 6%. MicroStrategy outperformed with a gain of nearly 4%.
Stock Market Today: Utilities, Health Care Shine
The benchmark S&P 500 fell 0.8%, though it bullishly clawed its way back to its 50-day line. Idexx Laboratories soared on an earnings beat.
The Invesco S&P 500 Equal Weight exchange traded fund was faring better than the market cap-weighted index, falling only 0.6%. Additionally, the S&P 500 sectors were mixed. Consumer discretionary and technology suffered the steepest losses, while utilities and health care made the best gains.
Small caps rallied well off session lows, but the Russell 2000 index ended the day down 1.2%. The Innovator IBD 50 exchange traded fund was in positive territory but finished 0.1% lower at the close.
Volume is running higher compared with the same time on Friday on both the New York Stock Exchange and the Nasdaq, a negative sign.
Magnificent Seven: Tesla, Nvidia, Apple Hit
The so-called Magnificent Seven group of stocks is arguably the jewel in the crown of the U.S. economy. Nearly all names in the group closed lower despite coming off lows for the day.
Tesla initially fell nearly 7%, undercutting its 50-day moving average in above-average volume in the process. This is a sell signal, even though the loss narrowed to less than 5%. It ended the session down more than 5%.
Artificial intelligence titan Nvidia, which has been under heavy pressure of late, came well off lows for the day but still dropped nearly 3%. It sank further below its 200-day line in high volume.
Apple tumbled more than 3%. The iPhone maker's stock now sits between its 50-day and 200-day lines, but remains off recent lows.
Google parent Alphabet dropped more than 1% while Amazon.com edged 0.1% lower. Alphabet is getting set to post results after the close Tuesday while Amazon reports Thursday.
Meta Platforms outperformed its rivals in the elite group as it popped more than 1%. It is extended past a 638.40 buy point. Meta is part of the prestigious IBD Leaderboard list of top stocks.
3:28 p.m. ET
Palantir Stock Nears All-Time Ahead Of Earnings
One stock that has become a firm favorite of retail and institutional investors alike is Palantir. And the stock is close to hitting fresh heights as it gets set to post earnings after the close.
Palantir outperformed the broader indexes as it rallied nearly 2%. It's high for the day of 84.25 is just below its all-time high level of 85.22, which it touched Friday.
Fourth-quarter earnings are seen popping 39% to 11 cents as revenue climbs 17% to $508.6 million, according to FactSet.
The stock has been on a red-hot streak over the past 12 months. It has rallied nearly 419% from its Jan. 31, 2024, closing price of 16.09.
It is also up a further 11% so far this year. Investors will be hoping to see further gains when the data analytics and artificial intelligence play reports after the close.
Bitcoin Battles Back, Crypto Stocks Off Lows
While many areas of the stock market were off lows for the day, bitcoin was actually moving higher. The most famous digital asset of all rose more than 4%, according to CoinDesk, trading around $102,000 per token.
Even more impressive is its move off 24-hour lows. It has rallied nearly 11% from its nadir of $91,687.29.
Cryptocurrency stocks in general were also getting stronger. Coinbase Global remained down, but was well off session lows. It currently trades below the important 50-day moving average.
Rival bitcoin mining play Riot Platforms also rallied into positive territory, while Mara, formerly known as Marathon Digital, lost ground on its 50-day and 200-day lines.
2:09 p.m. ET
Stock Market Today: These Stocks Test Support
It is always an encouraging sign for investors if a stock is getting support at the 50-day moving average. On the other hand, bad breaks are key sell signals.
A number of MarketSurge Growth 250 name were testing buyers at this key level. Rebounds from here can be used as aggressive entry points.
Boot Barn fell below the level in high volume as a post-earnings sell-off continues. Anyone who bought its recent breakout from a 156.42 entry could take this as a signal to exit before incurring more substantial losses.
Federal Signal is currently testing buyers at the 50-day benchmark amid a decline of more than 1%. The stock holds a strong IBD Composite Rating of 95 out of 99. If it can rally from here and move back above a flat-base entry of 99.89, it would be a good sign.
BlackRock has pulled back to the 50-day line after testing a flat-base entry of 1,082.45. This could be one to keep an eye on in case it rallies from here, as it holds a stout Composite Rating of 96.
These Bill Ackman Stocks Lag
There are few investors with a more impressive reputation than hedge fund titan Bill Ackman. But a couple of his picks lagged on the stock market today.
Nike initially was one of the worst performers on the Dow Jones index, but it was off lows for the day. It seeks support at its 50-day line. Ackman's Pershing Square Capital Management currently holds more than 16 million shares of Nike.
However, Canadian Pacific Kansas City was faring even worse as the Ackman holding fell 6%.
The stock was hit after Loop Capital analyst Rick Paterson cut his rating on the stock to sell from buy. He downgraded seven stocks in the railroad and delivery space due to possible inflationary effects of Trump trade tariffs.
It gapped below its 200-day line, a sell signal, and has also slipped below its 50-day line. Pershing Square now holds nearly 15 million shares in Canadian Pacific, which has a mediocre Composite Rating of 61 out of 99.
12:23 p.m. ET
Trump Eyes Mexico Agreement After Short-Term Deal
Stocks were buoyed after President Donald Trump and his Mexican counterpart, Claudia Sheinbaum, struck a deal to delay the implementation of a 25% tariff on goods from Mexico for one month.
Speaking on Truth Social, Trump said the duo had a "very friendly conversation" and that Mexican soldiers will be assigned to "stop the flow of fentanyl and illegal migrants into our country."
Additionally, a team led by Secretary of State Marco Rubio and Secretary of Treasury Scott Bessent has been tasked with securing a longer-term deal with Mexico.
Sheinbaum said on X that they had a "good conversation" which led to a "series of agreements."
She said Mexico will immediately reinforce its northern border with 10,000 members of its national guard to prevent drug trafficking. She also said the U.S. has committed to helping prevent the trafficking of high-powered weapons to Mexico.
Trump put the proverbial cat among the pigeons by levying tariffs of 25% on Mexico and Canada and a 10% levy on China over the weekend. The tariffs were set to come into force Tuesday. The tariffs are set at a lower 10% rate for Canadian energy products. Canada has hit back with a retaliatory 25% tariff of its own on $155 billion in U.S. imports.
Fears Over Recession
Before the agreement with Mexico, fears grew that the measures could lead to recessions in both Mexico and Canada, according to Morgan Stanley. The American economy could also take a hit in multiple ways.
"The tariffs announced by the President, along with retaliatory actions by our trading partners, could both raise prices and slow economic growth," B. Riley Wealth chief market strategist Art Hogan said in a note to clients. "There is a chance that President Trump will claim victory and pull back if he wins some concessions. Until then, this new trade war could cut 1% of U.S. GDP and add 1% to inflation."
CFRA Chief Investment Strategist Sam Stovall said some moves had already taken place to mitigate the effects of tariffs.
"There is likely to be an immediate destabilizing impact on supply chains with global repercussions on growth and prices. But it is too early and there are too many unknowns to clearly gauge outcomes," he said in his note to clients. "But recent data on trade, inventories, and sales suggest there have been considerable front-running (moves) ahead of threatened tariffs."
Stock Market Today: Gold Stocks Shine, Test Entries
Despite the negative broader action there were some bullish moves in the gold space.
Alamos Gold touched a buy zone after clearing a consolidation entry of 21.45, MarketSurge analysis shows. It is a late-stage pattern, a negative. Overall excellent performance is reflected in its IBD Composite Rating of 99. Earnings performance is a key strength. Per-share earnings are seen rising 51% in 2024 and 53% in 2025.
AngloGold Ashanti tested a double-bottom base entry of 31.46, but is back below the buy point. The mining firm is seen swinging from a loss of 75 cents in 2023 to earnings of $2.51 per share in 2024. Per-share earnings are expected to pop 69% this year.
Meanwhile, Leaderboard stock Agnico Eagle Mines is extended from an 89 entry after it rallied 2%.
Gold stocks act as a hedge during periods of economic uncertainty, such as drops of confidence in the U.S. dollar and pops in inflation.
11:02 a.m. ET
Stock Market Today: Auto Stocks GM, Ford Skid
Carmakers were also taking it on the chin in early trading on the stock market today. Vehicles account for almost a third of U.S. imports from Mexico and around 15% of Canadian imports.
General Motors gapped below its 200-day moving average. Ford also gapped down, but a loss of nearly 4% was cut sharply. The iconic automaker is getting set to report its earnings after the close Wednesday. This is sure to be a closely watched event.
Both Ford and General Motors have several plants in both Mexico and Canada.
Please follow Michael Larkin on X at @IBD_MLarkin for more analysis of growth stocks.
