The Dow Jones Industrial Average and other indexes were positive heading into the close Monday as investors cheered President-elect Donald Trump's selection of Scott Bessent for Treasury secretary. Nvidia and Palantir Technologies were the subjects of bullish analyst calls. And Berkshire Hathaway closed in on a buy point on the stock market today after Warren Buffett shared details on how he wants to spend his fortune.
The Dow Jones index was on pace for another record high, rallying back near session highs as it gained 440 points, or 1%. Boeing and Sherwin-Williams were top performers in the Dow with gains of nearly 3% each. And despite some praise from Wall Street, Nvidia was the laggard on the Dow.
The Nasdaq composite gained 0.2%. While it is off recent highs, the index is above its 21-day exponential moving average and sits more than 3% above its 50-day moving average.
Stock Market Today: Small Caps Shine
Top performers on the tech-heavy Nasdaq composite included beaten down stocks Super Micro Computer, which soared nearly 16%, and Moderna, which climbed more than 6%. Netflix was a laggard as it skidded 3.6%.
The benchmark S&P 500 rose 0.3%, but backed off after touching an all-time high. Pool made a splash as it gained more than 6% while solar stock Enphase Energy shined with a lift of more than 8%. Oneok and Lockheed Martin were laggards here. Oneok fell nearly 5% while defense play Lockheed dipped nearly 4%.
The S&P 500 sectors were mostly positive. Real estate and consumer discretionary were the best performers. Technology and energy were the areas lagging the most.
Small caps bit the bears, with the Russell 2000 rallying 1.7% and hitting an all-time closing high. Growth stocks moved higher as the Innovator IBD 50 ETF gained 0.8%.
Treasury yields also fell sharply. The yield on the 10-year Treasury note fell 15 basis points to 4.27%.
3:45 p.m. ET
Stock Market Cheers Trump Treasury Pick
One reason for the positive action on the stock market today was the warm reaction to Trump's pick for Treasury secretary.
Bessent, a hedge fund veteran who founded Key Square Group, is seen as a safe pair of hands who will be able to safely carry out the incoming president's economic strategy.
Bessent is a George Soros protégé who is seen as having in-depth knowledge of the markets, with the bond market in particular being an area of expertise. According to The Wall Street Journal, Bessent was keen to get involved because he wants to help the U.S. economy grow its way out of debt.
The U.S. Dollar Index, which measures the greenback against a basket of currencies, fell nearly 1%.
Meanwhile, Trump Media & Technology fell on the stock market today. It is trading below its 200-day line but above its 50-day moving average.
It fell despite the news Special Counsel Jack Smith has filed motions to dismiss his federal prosecutions against the president-elect. Smith said the move relates to the Justice Department's policy of not prosecuting sitting presidents. This decision looks to have already been baked into the stock.
Berkshire Hathaway Gains Amid This Warren Buffett Move
Legendary investor Warren Buffett has built Berkshire Hathaway into a mammoth enterprise. And Berkshire shares actually gained on the stock market today after the Oracle of Omaha shared more details on his plans to sell off his fortune for good causes.
His firm revealed today that he is converting 1,600 of his Berkshire A shares into 2,400,000 B shares so they can be given to four family foundations.
Buffett said in a note to investors that he is very pleased with his children's development as philanthropists and that they will have, upon his death, "full responsibility for gradually distributing all of my Berkshire holdings. These now account for 99½% of my wealth."
In addition to his three children he also appointed three potential successor trustees to help distribute the funds if necessary.
Berkshire Hathaway B shares inched up in afternoon trade. It is closing in on a flat base buy point of 484.82. This is a first stage base.
Stock Market Today: Darden Restaurants Breaks Out
Meanwhile, Darden Restaurants served up a breakout of its own for investors to feast on.
The Olive Garden parent is in the buy zone above a flat base entry of 173.75, MarketSurge analysis shows. This is an early stage pattern, a bonus. It was up more than 5% heading into the close.
However the stock currently has an Investor's Business Daily Composite Rating of 68 out of 99, a fact that will leave a bad taste in the mouths of many investors.
Both earnings and price performance are below par, which makes this one to avoid for those following the IBD Methodology.
Still, the restaurant stock is on pace for its largest percent increase since Nov. 6 and could notch its first record close since March 6, when it closed at 175.89.
2:31 p.m. ET
Bitcoin Falls As Rally To $100,000 Sputters
Bitcoin has rallied with aplomb following Trump's election. However, its seemingly inevitable march to $100,000 per coin is fading.
The cryptocurrency fell nearly 3% over the past 24 hours and was trading at around $95,000 per coin, according to CoinDesk. Still, given how the asset had risen by more than 40% since the Nov. 5 election, it could be simply taking a breather for now.
Among cryptocurrency-related stocks, Coinbase Global rallied out of the red to gain around 2%. The cryptocurrency exchange play is above its short-term and major moving averages.
Meanwhile, bitcoin miner Mara Holdings was up while MicroStrategy fell.
Financials Among More Stocks Clearing Entries
A trio of issues tested entries amid Monday's index gains. Commercial vehicles stock Rev is in a buy zone after clearing a consolidation entry of 31.85, according to MarketSurge analysis.
This is a first-stage base. Investor's Business Daily research shows such patterns are more likely to net big gains for investors. Rev has a strong IBD Earnings Per Share Rating of 95 out of a best-possible 99.
UMB Financial tested an ascending base buy point of 128.73. This is a rare pattern that can result in powerful upward moves. The stock's relative strength line hit fresh highs, a bullish sign. Overall strong performance has netted it a Composite Rating of 94.
And Fidelity National Financial is in a buy zone after jumping past a flat base entry of 26.97. This is an early-stage pattern.
Strong earnings growth is seen ahead for the company. Earnings are expected to rise 29% this year before accelerating to 33% growth in 2025.
Stock Market Today: Bath & Body Works Makes Soap-erb Move
One of the biggest winners on the stock market today was Bath & Body Works.
The soap stock squirted higher, rallying around 17%. It blasted clear of its 50-day moving average, and now sits around 16% above the important technical benchmark.
Its next challenge will be holding gains before making a push to the 200-day line. It sits nearly 9% below this longer-term level.
The stock got a boost after the firm beat views on the top and bottom lines for the third quarter. Earnings rose 2% to 49 cents a share while sales were up 3% to $1.61 billion.
Additionally — and perhaps more importantly — Bath & Body Works predicts adjusted earnings of $2.06 a share for the fourth quarter. This was above analyst projections for $1.97, according to FactSet.
12:17 p.m. ET
Outside Dow Jones: Home-Related Issues Clear Buy Points
There were a number of stocks clearing buy points amid the encouraging action.
Homebuilder Toll Brothers is at the top of its buy zone after clearing a flat base entry of 160.12, MarketSurge analysis shows.
The relative strength line hit fresh highs, a positive. It also recently got support at the important 50-day moving average.
Homebuilder stocks were getting a boost as Treasury yields dipped Monday. Overall performance is not ideal though, with its IBD Composite Rating sitting at 82 out of 99.
Mattress play Tempur Sealy International is in a buy zone after bouncing above a consolidation entry of 57.13. The chart also shows a handle entry at 56.36.
The Composite Rating here is below par, coming in at 77. Earnings are its strongest suit, reflected in its EPS Rating of 80 out of 99. However funds have been buying of late, with its Accumulation/Distribution Rating coming in at B+, on an A+ to E scale. In total, 67% of its stock is held by funds.
Building products play Azek rose above a consolidation entry of 50.78. This is a late-stage pattern, which adds risk.
Double-digit earnings growth is seen ahead for the non-wood decking play. Earnings are seen rising 16% in 2025 before adding another 17% the following year.
10:47 a.m. ET
Bullish Calls For Nvidia Stock, Palantir
A couple of the hottest stocks on Wall Street had diverging fortunes despite both receiving bullish Wall Street calls.
Nvidia skidded despite Rosenblatt reiterating the stock as a buy. Rosenblatt touted the artificial intelligence leader's outlook as well as an improving demand profile for its new Blackwell AI chip next year.
Despite this, Nvidia fell back below a consolidation entry of 140.76, according to MarketSurge analysis. Overall performance is strong, which is reflected in Nvidia's extremely strong IBD Composite Rating of 97.
Meanwhile, Palantir Technologies got a boost after Bank of America reiterated its buy rating on the stock. Also, its price target was hiked from 55 to 75 due to the firm's ability to "digitize enterprises."
Palantir got further extended above its 50-day line.
Macy's Skids Amid Delay Amid Accounting Issue
One stock that was getting punished on the stock market today was department store Macy'. The stock tumbled after the company said it is delaying its third-quarter report.
Macy's said an employee had deliberately entered incorrect accounting information to hide delivery expenses.
Macy's had been expected to announce its earnings before the open Tuesday. It now expects to report by Dec. 11.
The company did release some preliminary results. Third-quarter sales fell more 2.4% to $4.74 billion. They had been seen slipping to $4.72, according to FactSet. Comparable sales also dipped.
Macy's stock lost ground on its 200-day moving average but is holding above its 50-day line for now.
Outside Dow Jones: Atlassian Rises In Buy Zone
With the market currently in an uptrend it is a good time to be buying stocks. Enterprise software firm Atlassian saw a breakout strengthen on the stock market today.
Shares moved higher in the buy zone from a cup-with-handle entry of 256.39, according to MarketSurge analysis.
Overall performance is good, with its IBD Composite Rating coming in at 98 out of 99. It is among the top 7% of issues in terms of price performance over the past 12 months. Earnings are seen rising 11% in the fiscal year ending in June and 25% in the next fiscal year.
As a reminder, IBD continues to recommend 80% to 100% exposure for most investors.
Please follow Michael Larkin on X at @IBD_MLarkin for more analysis of growth stocks.
