The Dow Jones Industrial Average and other indexes rallied Thursday as Trump Media & Technology plunged, and Apple and Tesla skidded. Meanwhile, an artificial intelligence stock bought by famed fund manager Cathie Wood soared on the stock market today.
Stocks were near session highs heading into the close as they looked to build on last week's bullish action. The Dow industrials popped 538 points, which equates to a rise of more than 1.2%. Shares of 3M jumped more than 4% after an earnings beat. However, Apple fell more than 3% amid numerous downgrades and price-target cuts from analysts.
The Nasdaq composite reversed from a deficit and was near highs for the day, gaining 0.6% at the close. It now sits roughly 2% above its rising 50-day moving average. Grail was a standout stock as it popped more than 6%. Arm also flexed its biceps, climbing 4%.
Bitcoin play MicroStrategy had reversed at one point but ended the day down nearly 2%. But bitcoin's reversal stuck as it gained more than 2%. Bitcoin now trades for just over $106,000 per token.
Stock Market Today: Utilities, Industrials Strong
The S&P 500 was up 0.9%. This allowed it to move further above its 50-day line, which it recaptured Friday. Vistra was notably strong as it jumped 8.5%. It came after evacuation orders caused by a fire at the firm's battery storage facility in Moss Landing, Calif., were lifted.
But Walgreens Boots Alliance plunged more than 9% after the Justice Department filed a lawsuit accusing the firm of knowingly filling unlawful prescriptions for highly addictive painkillers.
The Invesco S&P 500 Equal Weight exchange traded fund rose 1.2% amid broad gains. Advancers well outnumber decliners on both the New York Stock Exchange and the Nasdaq exchange.
Another plus for the stock market today was that the S&P 500 sectors were mostly positive. Utilities, industrials and real estate were faring best. Energy was the only sector in negative territory.
Small caps built on early gains. The Russell 2000 index jumped nearly 2% as the small-cap index moved above the 2,300 level.
Growth leaders were giving the bears a painful beat down. The Innovator IBD 50 ETF rallied 3%, and was near highs for the day. The fund reclaimed its 50-day moving average and sits nearly 3% above the benchmark.
3:29 p.m. ET
Trump Stock Dives On Day After Inauguration
One stock that has been touted as a Donald Trump sentiment gauge is his listed company, Trump Media & Technology. The 47th president will be hoping that is not the case after the stock plunged more than 11% on the stock market today. Adding insult to injury, this was after the social media stock moved off session lows.
The social media company is the parent of conservative Truth Social, an alternative to Elon Musk's X. But performance is far from ideal, with its IBD Composite Rating at 61 out of a best-possible 99.
The stock holds an EPS Rating of 43. It posted a full-year loss of 43 cents per share in 2023 and posted losses in each quarter of fiscal 2024 reported so far.
Price performance is its best feature, with the stock among the top 12% of issues in terms by that metric over the past 12 months. Still, gains for the year so far have largely evaporated. It is now up about 5% so far in 2025.
The fact it is losing money makes it a risky investment. People following the IBD Methodology should be looking for companies with strong earnings performance.
Cathie Wood Buys AI Play Amid Plunge, Stock Soars
They say that fortune favors the bold. And that was certainly the case for Ark Invest Chief Executive Cathie Wood. Filings show her firm, where she also serves as chief investment officer, loaded up on Tempus AI on Friday, just before the three-day holiday.
Wood snapped up more than 159,000 shares for the Ark Innovation ETF. Friday's closing price of 35.15 was a 56% decline from its Nov. 12 high of 79.49.
Ark is already firmly in the green on the newly added shares, as Tempus stock rocketed by more than a third on the stock market today. Tempus uses data and artificial intelligence to improve health care. It aims to help drug discovery and genomic sequencing.
Nevertheless, it still looks like a risky investment. It has lost money in each of the past five years and holds an IBD Composite Rating of just 14 out of 99.
The Ark Innovation ETF also added nearly 126,000 shares in Crispr Therapeutics. It sold shares of UiPath and Roblox. Tempus moved higher amid generally bullish action amid stocks in the space.
Quantum computing stocks also popped after President Trump issued an executive order that eased artificial intelligence regulation. D-Wave Quantum rallied sharply, Rigetti Computing vaulted higher and IonQ surged.
2:04 p.m. ET
Netflix Rallies Ahead Of Earnings
One stock that is sure to be watched closely Tuesday is Netflix, with the company getting set to post earnings after the close. Wall Street expects earnings to rise 99% to $4.21 as revenue climbs 14% to $10.1 billion, according to FactSet.
Netflix stock rose, but is trading below a weekly chart flat-base entry of 941.75, MarketSurge analysis shows. One reason for caution is this is a fifth-stage base, which counts as a late stage. Such patterns are less likely to net good gains, according to IBD research.
The reason is that by the time late-stage bases form, the stock's strong performance has become obvious to everyone in the market. Much positive information is already baked into the price.
Still, the stock could yet stage a powerful move if earnings come in well above expectations. If it manages to move clear of its 50-day line it could be used as an early entry by aggressive investors.
Netflix Soars Late; Trump Rally Rolls On, Speculative Stocks Soar
Stock Market Today: More Stocks Clear Buy Points
The ongoing bullish action Tuesday meant a number of other stocks were also clearing entries.
Air conditioning play Comfort Systems USA is in a buy zone after clearing a cup base entry of 510.79. Overall performance is top-notch, netting it a best-possible IBD Composite Rating of 99.
Earnings are seen rising 20% in 2025 on top of already strong growth. Institutional sentiment is noteworthy, with its Accumulation/Distribution Rating sitting at B. It currently holds the No. 7 spot on the IBD 50 list.
Consumer loans stock Enova International has cleared a midstage flat base entry of 108.15. Both earnings and stock market performance are strong. In total, 70% of shares are held by funds according to MarketSurge data.
And financial services play StoneX has cleared a flat base buy point of 106.77. It still sits in the actionable zone. This is an early-stage pattern, a bonus.
It is also strong overall, with its Composite Rating a stout 98. The relative strength line is hitting new highs, a positive sign for the breakout attempt.
12:35 p.m. ET
Tesla Skids Despite Being Bullish Call
While Wall Street analysts can often boost or harm a stock's performance in the short term, this wasn't the case for Tesla today.
The Magnificent Seven member skidded despite being named a top buy-and-hold idea by Piper Sandler analyst Alexander Potter. He gave the stock an overweight rating and also hiked his price target to 500 from 315.
Potter said in a note to clients that "investors are starting to appreciate Tesla's potential in 'real-world' AI" However he also said action in early 2025 could be "choppy."
The stock is down around 15% from its Dec. 18 high of 488.54. Still, investors may consider adding it to a watchlist as it consolidates above its 50-day moving average.
Tesla stock has a strong IBD Composite Rating of 91 out of 99, with price performance its strongest suit. Encouragingly, it has been finding support at the 21-day exponential moving average.
Stock Market Today: 3 Stocks Test Entries
The overall bullish action was leading to a number of breakouts. It is currently a good time to be adding stocks.
Fabless chip play Ambarella has cleared an undefined pattern with an ideal buy point of 81.32, MarketSurge analysis shows.
The system-on-a-chip company has a mediocre EPS Rating of 59 out of 99, and is expected to lose money in 2024, 2025 and 2026. But it is among the top 6% of issues for price performance over the past 12 months.
Aerospace stock Embraer is in a buy zone above a cup base entry of 40.34. It cleared the entry before forming a handle.
Overall excellent performance is reflected in its IBD Composite Rating of 98. Earnings are seen surging 387% in fiscal 2024, according to MarketSurge, with profits expected to hold steady this year.
Pipeline operator MPLX is actionable after clearing its own cup-base buy point of 51.94 in active trading.
The relative strength line has surged to fresh heights, a bullish sign. The midstream fuel distribution play is a solid all-around performer, with its Composite Rating coming in at 90.
10:48 a.m. ET
Stock Market Weighs Up Trump Day One
Traders digested the first day of the new Trump administration.
He has already started the process of withdrawing the U.S. from the World Health Organization, issued almost 1,600 pardons related to the Jan. 6, 2021, Capitol riot and declared a national emergency at the U.S.-Mexico border.
He also issued an executive order pulling the U.S. out of the Paris Climate Agreement.
Crucially, Trump did not embark on a so-called shock-and-awe approach to tariffs. However, he did say 25% tariffs could be levied on Canada and Mexico starting Feb. 1.
China Stocks Inch Up Amid Trump Hopes
Hopes are also rising that Trump may seek to reset relations with China, the U.S.' biggest economic rival.
"Trump wants a deal. Otherwise, he would have shot up China on Day One," Alicia Garcia Herrero, Asia Pacific chief economist at brokerage Natixis, told Reuters. "He ran a campaign which was very aggressive toward China, and then on Day One shied away from it."
She also believes that China will "offer Trump whatever he needs to do a deal." This could ultimately benefit both sides because, as trade tensions cool, economic activity could be boosted.
The prior Biden administration had increased the pressure on China with measure such as limiting exports of artificial intelligence chips. Nvidia had been critical of these measures.
China stocks were mixed, with a positive bias, in early action. E-commerce play JD.com reversed lower by more than 1%, while Alibaba trimmed gains. Temu parent PDD also reversed lower.
Warren Buffett-backed electric vehicle play BYD popped nearly 4%. It has rallied clear of its 50-day line, which could be used as an early entry by aggressive investors. It has also formed an undefined pattern with an ideal buy point of 42, MarketSurge analysis shows.
The iShares MSCI China ETF saw initial gains fade but remained up%.
Please follow Michael Larkin on X at @IBD_MLarkin for more analysis of growth stocks.
