The Dow Jones Industrial Average was lower even as the Nasdaq and S&P 500 rose at midday. Nvidia (NVDA) and Apple (AAPL) got bullish analyst comments. Trump Media & Technology (DJT) fell following its latest earnings report.
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The Dow Jones industrials slipped nearly 100 points, or 0.2%. It is trying to hold above the 50-day moving average after rallying back to the level last week.
The tech-heavy Nasdaq composite was off session highs, but still up 0.4%. AI play Super Micro Computer (SMCI) was a top performer here as it rallied around 8%. New issue Grail (GRAL) lagged as it fell more than 3%. It remains to be seen whether it can fulfill its quest to rally into positive territory by the close.
The S&P 500 was also positive, rising 0.3%. Insulet (PODD) was having a solid session here as it gained nearly 5% after Barclays raised the price target. Albemarle (ALB) lagged, skidding more than 7%.
Stock Market Today: Tech Stocks, Energy Shine
Meanwhile, the S&P 500 sectors were mostly negative. Technology and energy were the best performers while real estate and communication services fell the most.
The bears bit small caps in early trading, with the Russell 2000 falling nearly 1%. The midcap S&P 400 was down 0.4%.
Growth stocks reversed lower, with the Innovator IBD 50 (FFTY) exchange traded fund falling 0.1%.
Starbucks Retakes Key Benchmark Amid Activist Move
Starbucks (SBUX) was one of the better performers on the stock market today, rising nearly 4%. The stock is battling to close back above the important 50-day moving average but remains stuck in a long downtrend.
The coffee chain stock popped amid a Wall Street Journal report that activist investor Starboard Value has taken a stake. It is the latest activist to take an interest in the company. It is already locked in talks as it looks to appease Elliott Investment Management.
With Elliott looking for changes, if it fails to achieve its aims it could end up starting a proxy battle in an attempt to win seats on the board. It remains to be seen whether Starboard would be an ally or even try to get its own representation in the future.
Starbucks management has come under pressure amid falling sales in the important U.S. and China markets. Starbucks stock has fallen more than 19% so far this year.
Stock Market Today: Three Stocks Eye Entries
With the stock market trying to fight its way out of a sharp pullback it is a good time to find stocks showing relative strength near potential entries. Here are a few potential candidates.
Defense contractor General Dynamics (GD) has formed a flat base with an ideal entry point of 302.75.
The relative strength line has been moving higher of late. Overall excellent performance is reflected in its IBD Composite Rating of 98 out of 99.
W.R. Berkley (WRB) has formed a flat base, which can also be interpreted as a saucer base, with an ideal buy point of 59.46. It would be actionable as high as 62.43 if it breaks out. This is a second-stage pattern for the insurance play, which still counts as early.
Earnings performance is a key driver for the firm, with its EPS Rating coming in at 98 out of 99. Price performance is no slouch either, with the stock among the top 15% of issues in terms of price performance over the past 12 months.
Medical stock DaVita (DVA) has also formed a flat base with a buy point at 147.93.
DaVita operates dialysis centers, which treat patients with chronic kidney disease. Earnings have risen by an average of 54% over the past three quarters.
Inflation Outlook Falls, Debt Fears Rise
Meanwhile, a new reading showed that consumer confidence is improving on the path of inflation.
According to the New York Fed’s Survey of Consumer Expectations the three-year inflation outlook has dipped to 2.3%. This was its lowest reading to date, with the data set going back as far as June 2013.
However consumers’ delinquency fears also surged, with the average likelihood Americans will miss a minimum debt payment in the next three months rose to 13.3%. This was the highest level since April 2020.
10:40 a.m. ET
Regional Bank KeyCorp Pops On Deal
Regional banks gave back much of their recent gains amid a broad pullback.
But KeyCorp (KEY), which operates through its KeyBank subsidiary, scored a double digit gain after Bank of Nova Scotia agreed to take a minority stake in the company. Scotiabank is to purchase 14.9% of KeyCorp’s stock in return for a cash injection of about $2.8 billion.
Key stock gapped up away from it 50-day moving average and is now well clear of an old buy point of 15.61, MarketSurge analysis shows.
KeyCorp is on pace for its biggest largest increase since Nov. 9, 2020, according to Dow Jones Market Data. On that day it surged 18.6%
Stock Market Today: Monday.com Pops On Earnings
One stock that was rising on earnings on the stock market today was Monday.com (MNDY).
Shares surged after the company reported strong second-quarter results. EPS popped 129% to 94 cents as revenue climbed 34% to $236.1 million. This was better than Wall Street expected.
The firm also guided for revenue of $245 million in the current quarter.
Monday.com exceeded analyst estimates by bringing in $243 million in revenue, outperforming competitors like Asana and Smartsheet. The stock surged more than 10% by 10:30 a.m. ET, surpassing the 50-day moving average. Despite recent choppy action, it maintains an impressive IBD Composite Rating of 93 out of 99.
In other news, the Magnificent Seven group of stocks saw mixed performance. Nvidia rose over 2% after UBS reiterated its buy rating, while Apple experienced a slight increase following positive remarks from Wedbush. Amazon, Alphabet, Microsoft, and Meta Platforms had slight declines, while Tesla lagged the most with a 1.4% drop.
On the flip side, Trump Media & Technology faced losses as the company reported another quarterly loss. Despite a narrower loss per share and reduced net loss, the firm saw a decline in net sales and a significant increase in operating costs. The stock was down nearly 3% on Monday, continuing its downward trend since hitting a high in March.
For more insights on growth stocks, follow Michael Larkin on X (formerly Twitter) at @IBD_MLarkin. Don’t miss out on the latest stock tips and predictions by joining IBD Live each morning. text: “The cat jumped onto the windowsill and gazed outside at the birds flying by.”
Rewritten: “The cat leaped onto the windowsill and stared outside, watching the birds soar past.”