The Dow Jones Industrial Average surged even as Apple (AAPL) fell following its iPhone 16 launch Monday. Palantir Technologies (PLTR) soared while Tesla (TSLA) led the Magnificent Seven on the stock market today. But indexes have been fading in afternoon trading.
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Finding What’s Being Rewarded In Every Market Cycle
After a hard fall Friday, stocks fought back. The Dow industrials were off highs but remained up more than 400 points amid strength in blue chips. This equates to a rise of 1.1%.
The Nasdaq composite also backed off highs. It remained up 0.6% but is well below its 50-day moving average. Arm (ARM) remained the best-performing Nasdaq stock, up more than 6%.
The S&P 500 was also strong with a gain of 0.9%, but it’s trading below its 50-day line. Super Micro Computer (SMCI) continued to lead the index with a gain of nearly 6%. The Invesco S&P 500 Equal Weight (RSP) exchange traded fund rose 1% amid broad gains.
Monday’s move came after the S&P 500 suffered its worst week in more than a year. The Nasdaq had its worst week since 2022.
Stock Market Today: Growth Stocks Bash Bears
Another plus for the stock market today was the fact that the S&P 500 sectors were all positive. Financials and industrials fared best. Technology and communication services made the slimmest gains.
The Russell 2000 was up 0.5% as the small-cap index tries to find support around the 2,100 level.
The Innovator IBD 50 ETF (FFTY) outperformed with a gain of 2.3%. The fund is still rooted below its 200-day moving average.
Apple Stock Falls Despite iPhone 16, Watch Launch
One stock that was not faring well on the Dow Jones was Apple. It fell despite unveiling its new iPhone 16 models and other product updates at its “Glowtime” event. Its first unveil was the new Apple Watch, the Series 10, which boasts a larger screen. There were also some new AirPods.
But investors were keen to run the rule over the new iPhone 16. The iPhone 16 and its Plus model plus the iPhone 16 Pro and Max models were all unveiled. The new iPhone Pro models include the A18 Pro chip. This has been designed to power generative AI workloads and to maximize the benefits of the new Apple Intelligence offering.
AAPL stock was down more than 1% and trading near a one-month low. Apple stock trades just below its 50-day moving average and shows a consolidation entry of 237.23, MarketSurge analysis shows. But the stock appears to be forming a handle with a 232.92 buy point.
Palantir Pops Amid S&P 500 Nod
A trio of stocks were rallying on the stock market today amid news that they will join the vaunted S&P 500.
Palantir Technologies surged more than 13% and now sits well above its 50-day moving average.
The AI stock currently holds a best-possible Composite Rating of 99 from Investor’s Business Daily. It has rebounded since getting support at its 200-day moving average on Aug. 5.
Computer hardware play Dell Technologies (DELL) rallied 4% on news of its inclusion in the benchmark index. However, it still trades near its 200-day line. Its EPS Rating of 57 out of 99 is poor.
The third to join the list, insurance carrier Erie Indemnity (ERIE), was up more than 1% on the stock market today but well of session highs. Shares are well-extended after previously hitting their 20% profit target from a 411.72 entry.
American Airlines (AAL) was up nearly 4% despite losing its spot on the index. Bio-Rad Laboratories (BIO), which fell more than 2%, and Etsy (ETSY), which was fractionally positive, also are leaving the S&P 500.
01:20 p.m. ET
Dow Jones Today: Boeing Stock Climbs
The outperformance of the Dow Jones Industrial Average was striking, with nearly all components in positive territory. It benefited from Boeing (BA), the strongest member of the index, as it rallied nearly 4%.
The firm reached a labor deal that averted a potential strike. Nevertheless, the beaten-down aerospace giant remains about 7% below its 50-day moving average and is mired in a long-term downtrend.
Other names flexing their muscles on the Dow Jones today included American Express (AXP) and insurance play Travelers (TRV).
Merck (MRK) was the worst laggard, falling roughly 2% on the stock market today.
12:05 p.m. ET
Stock Market Today: Tesla, Nvidia Lead Magnificent Seven
The so-called Magnificent Seven stocks were having mixed fortunes Monday. Tesla stock was out in front as it rallied nearly 3%. But it remains below its 50-day moving average after falling below the benchmark Friday.
AI play Nvidia was also solid here, rising around 2%. The Leaderboard stock, which has an ideal EPS Rating of 99, is above its 200-day moving average but lags the 50-day line.
Amazon.com (AMZN) climbed more than 2% while Meta Platforms (META) and Microsoft (MSFT) each recorded gains of just under 1%.
Google parent Alphabet (GOOGL) struggled, falling nearly 1%.
Bitcoin Rallies, Crypto Stocks Gain
Bitcoin has been hit amid broad weakness, but rallied Monday. It was up nearly 2% as it traded at just over the $55,000 per coin level, according to CoinDesk. The digital currency retains a solid year-to-date gain of more than 24%.
Cryptocurrency stocks also made up some ground.
Coinbase Global (COIN) experienced a 3% jump in the crypto exchange market, but it remains more than 23% below its 200-day moving average due to recent negative trends. On the other hand, former IBD 50 member CleanSpark (CLSK) saw a rally of over 5%, but its 50-day moving average crossed below the 200-day line, indicating a bearish trend known as the death cross. Meanwhile, Riot Platforms (RIOT), a fellow bitcoin miner, saw a rise of over 3% in today’s stock market activity.
Marathon Digital (MARA) stood out with a strong rally of over 8%, but it still ranks in the bottom 16% of stocks in terms of price performance over the past 12 months.
In other news, Cathie Wood from ARK Invest seized the opportunity presented by last week’s stock market pullback by purchasing shares of Tempus AI (TEM) stock. The ARK Innovation (ARKK) ETF acquired over 111,000 shares of Tempus on Friday. Despite its IPO in June, Tempus holds an IBD Composite Rating of 45 and has been one of the top-performing stocks over the past year. However, the stock fell 35% from its recent high on Aug. 22 and experienced an 11% drop in Monday’s trading session.
Additionally, the ARKK fund also added nearly 89,000 shares of Recursion Pharmaceuticals (RXRX) while reducing its holdings in Trade Desk (TTD) and Twist Bioscience (TWST) stocks.
Furthermore, three equities – Tyler Technologies (TYL), General Dynamics (GD), and MGIC Investment (MTG) – are showing strength near potential entry points. Tyler Technologies is approaching a flat-base buy point of 593.50, while General Dynamics eyes an entry point of 302.75. MGIC Investment has also formed a flat base with a potential entry at 25.93. These stocks exhibit strong performance metrics and are closely monitored for potential investment opportunities.
For more insights on growth stocks, follow Michael Larkin on Twitter at @IBD_MLarkin. given sentence:
“The cat sat lazily in the sun, enjoying the warmth on its fur.”
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“The cat lounged in the sun, savoring the heat on its fur.”