The Dow Jones Industrial Average and other major indexes surged higher Monday afternoon as stocks kicked off a holiday-shortened week. A leading chipmaker topped the S&P 500 while a drug giant padded its gains and Tesla finished near session highs on the stock market today.
The Dow wavered between losses and gains, but surged just before the close and ended the day up 0.2%. After falling 10 straight sessions, the blue chip index has risen three straight days. It still sits about 1.5% below its 50-day moving average.
The benchmark S&P 500 also jumped near the close and finished 0.7% higher, moving past its 50-day line. And the Nasdaq composite proved the strongest, piling on another 1% to Friday's 1% gain. The tech-heavy index is firmly back above its 21-day exponential moving average.
But the Russell 2000 didn't join the party. The small cap index pulled back 0.4%, giving back some of Friday's 0.9% gain.
Volume was significantly lower on both the New York Stock Exchange and Nasdaq vs. the same time Friday, a triple-witching session. On the both exchanges, falling stocks topped rising issues by roughly 4-3.
Bitcoin pared its losses to 1.4% and hung just below the $93,800 level, while the 10-year Treasury yield added seven basis points to 4.59%. And U.S. crude oil edged lower to $69.49 a barrel.
Stock Market Today: Three Magnificent Seven Stocks Making Moves
Magnificent Seven and IBD Leaderboard stock Nvidia finished the day 3.7% higher. The newly added IBD SwingTrader holding bumped up to its closely watched 50-day line, finding resistance. The Dow Jones stock climbed more than 3% Friday after a Morgan Stanley analyst called it a top pick for 2025.
Another Mag Seven name, Tesla, closed the day with a 2.3% gain and ended its three-day losing streak. The electric vehicle maker is on the IBD Leaderboard watchlist.
Lastly, Apple posted a 0.3% lift and the iPhone maker reached an all-time high on the stock market today. Shares are extended from the buy zone of a flat base with a 237.49 buy point, according to MarketSurge pattern recognition. The stock is close to reaching a $4 trillion market cap.
3:30 p.m. ET
Broadcom Climbs, Eli Lilly Gets Green Light
Broadcom bolted 4.4% higher and was biggest gainer on the S&P 500 Monday. Shares are in the profit zone of a double-bottom base with a 185.05 buy point. The stock has rallied since its fiscal fourth quarter earnings report on Dec. 12.
Eli Lilly increased 3.1% on top of Friday's 1.3% gain, on Friday's news the U.S. Food and Drug Administration approved its Zepbound drug for adults with moderate-to-severe sleep apnea and obesity. The drug stock is in an undefined base with an official 972.53 buy point. But shares are below the down-trending 50-day line, indicating weakness.
Nordstrom slid 1.5% on news it agreed to be taken private by the Nordstrom family and Mexican department store company El Puerto de Liverpool. The upscale department store stock is finding resistance around 25.
Carnival fell 4% and was the biggest loser on the S&P 500 Monday. The move follows Friday's 6.4% jump in heavy volume, after the cruise line operator topped fiscal fourth-quarter adjusted earnings and sales. Shares are testing their 21-day line, seeking support.
1:41 p.m. ET
Nvidia Chip Supplier Rallies, Hotel Name Leaps
IBD 50 name Taiwan Semiconductor popped 5.2% and hit the 205.63 buy point of a cup-with-handle base and is in a buy zone up to 215.91. The Nvidia chipmaker has nearly doubled so far this year and holds IBD Composite and Earnings Per Share Ratings of 98.
Playa Hotel & Resorts exploded around 27% higher in enormous volume on news it entered an agreement with Hyatt Hotels on strategic options, including a potential purchase by Hyatt.
Hyatt stock lost 2.2% on the stock market today. Shares have retreated below the 160.36 buy point of a flat base after volatile action following a November breakout.
12:05 p.m. ET
Despegar Soars On Merger News
Despegar.com soared more than 31% in huge volume on news it agreed to be acquired by Prosus for $19.50 a share. The Argentina-based online travel booking firm traded near the offer's price Monday after closing at 14.65 Friday. Shares are extended from a cup-with-handle base with a 13.66 buy point. Slated for delisting after the deal closes, the stock hit a level not seen since August 2018.
Video streaming service Rumble rocketed around 85% following a report it will accept a $775 million investment from cryptocurrency company Tether. Rumble is on track for its largest increase on record, according to Dow Jones Market Data.
Elsewhere, bitcoin stocks sold off as the price of the cryptocurrency sank. IBD 50 name Hut 8 skidded 6.2% in light trading. The stock is on pace for a fourth straight day of losses as it pulls back to its 50-day line, seeking support. Hut 8 provides cryptocurrency mining infrastructure.
Coinbase Global stumbled 3.8% in light volume and is now testing its 50-day line. Shares have now given back a gain of around 23% from a 283.48 buy point, signaling a round trip sell signal.
MicroStrategy, the largest corporate holder of bitcoin, traded 4.4% lower, also in light action.
10:39 a.m. ET
Confidence Misses The Mark; Palantir Fades
The Conference Board's December consumer confidence report fell to 104.7, missed the 113 forecast and lagged the robust 111.7 reading in November.
IBD SwingTrader and IBD 50 name Palantir Technologies climbed to a new high before reversing 2.6% lower Monday morning. The initial bump came following news the company and startup Anduril are in discussions with other tech companies, including OpenAI and Elon Musk's SpaceX, to form a consortium to jointly bid on U.S. government contracts, The Financial Times reported Sunday.
Defense stocks including Lockheed Martin and RTX fell on the stock market today.
Novo Nordisk recouped 3.4% in heavy volume after tumbling 17.8% in heavy volume and hitting a 52-week low Friday. Shares have lost nearly 18% so far this year.
Stock Market Today: Warren Buffett Adds Three Names
Occidental Petroleum, Verisign and Sirius XM Holdings were little changed Monday. A Securities and Exchange Commission filing late Thursday showed Warren Buffett's Berkshire Hathaway recently added shares of all three.
Occidental is up 0.8%. It remains near its 52-week low and holds a weak 16 IBD Relative Strength Rating. Berkshire purchased 8.9 million shares of Occidental from Tuesday through Thursday of last week, according to the report.
Verisign gave back early gains and dipped 0.1% and sits in a long saucer-with-handle base with a 202.74 buy point. Shares have underperformed and are down around 3% so far this year.
Sirius XM climbed 2% following Friday's 12.1% boost. Berkshire Hathaway stock fell 0.3% and sits below its 50-day line.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
