The Dow Jones Industrial Average and S&P 500 were higher heading into the close Tuesday after Federal Reserve Chairman Jerome Powell stood firm on interest rates. Proposed partnerships dominated the news as Tesla lagged amid fears of a takeover plan led by Elon Musk, while Apple popped on the stock market today over reports of an artificial intelligence deal with Alibaba.
The Dow rose 123 points, or 0.3%, and was near highs for the day. Component Coca-Cola led the way, jumping more than 4%.
The Nasdaq composite was off session lows, but ended the day down 0.4%. The tech-heavy index managed to hold just above its 50-day moving average after retaking the benchmark Monday.
On Semiconductor did well here as it rose nearly 2%. Marriott International was a laggard as it fell more than 5%. It has slipped back below a 295.45 entry. It fell after first-quarter guidance disappointed.
Stock Market Today: Energy Shines
The benchmark S&P 500 was erratic Tuesday, but reversed higher late to post a minuscule gain. DuPont de Nemours popped nearly 7% and reclaimed its 50-day and 200-day lines following quarterly results. Ecolab was also among the strongest performers in the index, clearing a 262.61 entry following earnings. The cleaning products stock surged more than 6%.
Fidelity National Information Services plunged 11.5%, but was off lows, on an underwhelming outlook.
Most S&P 500 sectors finished positive. Consumer staples and energy were strongest while health care and consumer discretionary lagged the most.
Small caps were lagging on the stock market today, with the Russell 2000 index down 0.5%. Growth stocks were hit harder though, as the Innovator IBD 50 exchange traded fund got mauled by the bears, diving more than 2%.
Volume was higher on the New York Stock Exchange but lower on the Nasdaq compared with Monday, according to preliminary data. Advancers narrowly held the advantage on the NYSE, while decliners held a 4-3 edge on the Nasdaq.
These 3 Warren Buffett Stocks Are Near Entries
There are few investors more highly lauded than value investing legend Warren Buffett. A trio of stocks held by his firm Berkshire Hathaway are currently near entries.
T-Mobile U.S. in a 5% buy zone above a cup base entry of 248.15, according to MarketSurge analysis. This is an early-stage base, which is a plus. Earnings are a key strength for the wireless telecom play, with its EPS Rating sitting at 97 out of 99.
Earnings are seen accelerating to 20% growth in fiscal 2025. It is also in the top 10% of issues in terms of price performance over the past 12 months.
Capital One Financial is getting bullish support at its 21-day exponential moving average as it trades just above a flat-base entry of 198.30. The relative strength line is just off recent highs. Overall strong performance has netted the stock an IBD Composite Rating of 94 out of 99.
It currently fares much better than the benchmark S&P 500 so far this year, rising more than 12%. It also sits near the summit of the high-flying Finance-Consumer Loans industry group, one of 197 groups followed by Investor's Business Daily.
Finally, Bank of America is just below a cup-with-handle ideal entry point of 47.51, MarketSurge analysis shows.
BAC currently holds an IBD Composite Rating of 91 out of 99. UBS analyst Erika Najarian rated the stock as a buy with a 53 price target in a Jan. 17 research report. She said the "core story" was still intact following Bank of America's quarterly report.
Funds have been net buyers of the stock lately. It has an Accumulation/Distribution Rating of B+.
Magnificent Seven: Tesla Dives Amid This Elon Musk Worry
The so-called Magnificent Seven group of stocks ended mostly lower on the stock market today. Tesla lagged most as it fell more than 6%, losing more ground on its 50-day moving average in the process. The relative strength line is also falling.
The electric-vehicle maker has given back most of its postelection gains. It is on track to fall its fourth week in a row and has lost almost a fifth of its value since the start of the year.
It fell again Tuesday as Tesla Chief Executive Elon Musk leads a consortium of investors wanting to buy the nonprofit that controls OpenAI for $97.4 billion. Alongside his activity in the administration of President Donald Trump, it raises further questions over whether Musk is fully focused on the EV company.
Oppenheimer analyst Colin Rusch said in a Tuesday note to clients that while Tesla is trying to become a physical AI play, he views "Elon Musk's bid for Open AI as a distraction from Tesla's challenges."
Tesla suffered its largest percentage decrease since Dec. 18, when it fell 8.3%, according to Dow Jones data.
Google-parent Alphabet, Microsoft, Nvidia and Amazon.com all dipped less than 1%. AI play Nvidia is facing resistance at the 50-day moving average after recently retaking its 200-day line.
Meta Platforms, which is part of the IBD Leaderboard list, rose a fraction.
Apple Fares Best On Alibaba Deal
Apple fared best among the Magnificent Seven, as it rose more than 2%. The iPhone maker's stock continues to trade between its 50-day and 200-day lines.
The iPhone maker was up amid reports it has partnered with Alibaba to bring AI services to its devices in China.
Alibaba added 1.3% and is nearing a cup base entry of 117.82, according to MarketSurge analysis. But it is already extended past a handle entry of 103.67.
While the Chinese e-commerce stock has many positive traits, its EPS Rating of 47 out of 99 is a clear warning flag. But the stock has been on a tremendous run of late, and is on track to rise for a fifth straight week.
Stock Market Today: Shopify Turns Positive
Shopify initially tumbled on the stock market today following its quarterly report but finished with a flourish and gained more than 3%.
Adjusted earnings of 44 cents a share were slightly better than expected. Revenue growth accelerated for the second straight quarter, up 31% to $2.81 billion. This was above the FactSet consensus of $2.73 billion.
Shopify said it expects revenue to grow at a mid-20% rate in the first quarter. While this was mostly in line with estimates, it seemed to disappoint traders. The company also expects operating expense as a percentage of revenue to be 41% to 42% in the first quarter, compared with 31.5% in the fourth quarter.
The company's stock fell nearly 4% after the open but reversed before the close. The stock is in a buy zone from an entry at 115.37. Shopify is a member of the prestigious IBD Leaderboard list of top stocks.
2:13 p.m. ET
JD Vance Speaks On Chips, Intel Soars
One stock that has had its share of troubles lately is fallen chip giant Intel. Its woes led to the stock being kicked off the Dow Jones index back in November.
But Intel was in rally mode Tuesday after Vice President JD Vance spoke at the AI Action Summit in Paris. Shares outperformed in the Nasdaq as Intel surged, helping it burst through the important 50-day moving average.
Vance said the Trump administration thinks the emerging technology of AI will have "countless revolutionary applications" in areas including economic innovation, job creation and health care. He also called for less AI regulation, though it was his comments on chips that really helped Intel.
"To safeguard America's advantage the Trump administration will ensure that the most powerful AI systems are built in the U.S. with American designed and manufactured chips," Vance said.
Despite its surge Tuesday, Intel remains mired in a long-term downtrend. It also has a dire IBD Composite Rating of 2 out of 99.
GlobalFoundries, which also makes chips in the U.S., climbed more than 6% as it tried to move off a three-month low.
12:38 p.m. ET
Powell Says Economy Doing Well
One event that was being closely watched was Powell's appearance in Congress Tuesday morning. He spoke to the Senate Committee on Banking, Housing, and Urban Affairs. Powell gave his current thoughts on the subject of interest rates during the question and answer session.
"Overall the economy is strong, growing two-and-a-half percent last year. The labor market is also very solid, unemployment (is) at 4%, quite a low level. Inflation last year was 2.6% for the year, so we're in a pretty good place with this economy," Powell said. "We want to make more progress on inflation and we think that our rate is in a good place and we don't see any reason to be in a hurry to reduce it further."
He also pointed out that high mortgage rates are not directly related to the Fed funds rate, but rather to the longer-term 10-year and 30-year Treasury rates. He said these "may remain high."
The federal funds rate is the target interest rate set by the Fed. It determines the rate at which commercial banks borrow and lend to one another overnight.
Powell will also speak to the House Committee on Financial Services Wednesday.
His talk comes amid a bumper week for inflation readings. The consumer price index report is due Wednesday while the producer price index drops Thursday. The Wednesday release on CPI data could refine what Powell tells the House committee.
Stock Market Today: Alibaba Magic Carpet Ride Continues
Despite a wavering market, there were a number of issues moving toward buy points Tuesday.
United Natural Foods was also moving higher as it eyes a cup base entry of 32.20. The relative strength line is hitting fresh highs, a bullish sign. Analysts see earnings surging 454% this year before slowing to 73% growth in 2026.
Samsara gave up initial gains, but continues to get closer to a cup base entry of 57.51.
This is a second-stage base for Samsara, a positive. It holds a best-possible IBD Composite Rating of 99.
The enterprise software firm, Tuesday's IBD Stock of the Day, helps customers harness data from the Internet of Things. Excellent all-around performance has won it a spot on the IBD Leaderboard Watchlist.
10:54 a.m. ET
Buffett Stock Coca-Cola Pops
One man who is a believer in buying and holding stocks for the long term is Berkshire Hathaway chief executive Warren Buffett. And one of his firm's holdings, Coca-Cola, was bubbling up on the stock market today after earnings and revenue came in above expectations.
Earnings rose 12% to 55 cents a share while sales climbed 6% to $11.5 billion. The firm said demand grew in the U.S., China and Brazil.
The company expects earnings will rise 2% to 3% this year despite headwinds due to currency exchange.
The soft drink maker popped higher. This caused it to gap above its 200-day moving average. It remains well shy of a consolidation entry of 73.53, MarketSurge analysis shows.
Coca-Cola is the fourth most valuable holding in the Berkshire Hathaway portfolio. The firm holds 400 million shares, which are worth just shy of $26 billion.
Additionally, the Coca-Cola shares account for almost 9% of the Buffett company's portfolio.
Please follow Michael Larkin on X at @IBD_MLarkin for more analysis of growth stocks.
