The Dow Jones Industrial Average and other indexes remained higher even after President-elect Donald Trump spoke out on reports of a watered-down tariff policy. Nvidia (NVDA), Arm (ARM) and Broadcom (AVGO) were among chip stocks rallying on the stock market today after Foxconn announced record Q4 revenue.
FuboTV (FUBO) saw its price more than double amid a deal with Walt Disney (DIS). A number of stocks were also clearing buy points amid the positive action, including GE Vernova (GEV).
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Indexes were near session highs at midday as they looked to build on Friday’s bullish action. The Dow Jones industrials popped nearly 400 points, or 0.9%. Microsoft (MSFT), Amazon.com (AMZN) and Walmart (WMT) were among the best Dow performers, each rising nearly 2%.
The Nasdaq composite fared best among the major indexes as it popped nearly 2%. It pulled further above its 21-day exponential moving average in the process.
Memory chip stock Micron Technology (MU) was the best performer in the Nasdaq as it surged almost 12% amid broader sector exuberance. It is off recent lows and has moved back above its 50-day moving average, which itself sits below the 200-day line.
Stock Market Today: Tech On Top, Most Sectors Gain
The S&P 500 gained more than 1% and is now pulling away from its 50-day moving average after closing at the line on Friday. Super Micro Computer (SMCI) was the second-best stock today in the index, according to FactSet, as it vaulted almost 11%.
The S&P 500 sectors were mostly higher. Technology and communication services were the areas faring best. Real estate and utilities underperformed.
Small caps were also rallying, with the Russell 2000 up nearly 1%. The Innovator IBD 50 ETF (FFTY) trimmed gains, but remained up 0.4%.
Outside Dow Jones: 3 Stocks Clear Entries
With indexes in rally mode, now is a good time to be buying breakouts. Here are a trio of names clearing entries worthy of consideration.
GE Vernova has cleared a flat base buy point of 357.09, MarketSurge analysis shows. This is a second-stage base, which is favorable.
It climbed to a record high after getting support at the 50-day moving average. The relative strength line has hit fresh heights also, a bullish sign.
The General Electric spinoff’s losses narrowed last year. Institutions have been snapping up GE Vernova of late, with its Accumulation/Distribution Rating sitting at B. In total, 49% of shares are currently held by funds, according to MarketSurge data.
Premium apparel and accessories stock Ralph Lauren (RL) is rebounding well after getting support at the 21-day exponential moving average, and on Monday it topped a consolidation entry of 237.16.
It holds an IBD Composite Rating of 91 out of 99. Its relative strength line has just hit fresh highs, a good sign. Projected earnings growth is not quite up to snuff for those following the IBD methodology, with EPS seen rising 14% in the fiscal year ending in March and rising a further 12% the next fiscal year.
Financial services and insurance play Equitable Holdings (EQH) is clearing a double-bottom base entry of 49.22. This is an early-stage pattern, a positive.
Earnings performance is solid for the company, with its EPS Rating sitting at 84 out of 99. Big Money has also been snapping up the stock lately, netting it an Accumulation/Distribution Rating of B+. In total, 64% of its stock is held by funds, according to MarketSurge data.
10:42 a.m. ET
Trump Hits Out After Tariff Report Boost Stocks
Axon Enterprise (AXON) flashed a sell signal by undercutting its 50-day line amid a decline of over 8%. The police equipment stock had been a member of the IBD Leaderboard list of stocks but was removed this morning.
Worries over the tariff policy that will be pursued by the incoming second Trump administration has been an overhang for the stock market of late.
But equities were boosted after the Washington Post reported that Trump’s aides are looking to apply worldwide tariffs on critical imports only. This helped ease concerns that all imports could be impacted and that America could be dragged into a damaging trade war.
The U.S. Dollar Index, which measures the greenback against a basket of currencies, eased less than 1%. European stocks popped on the news.
However, Trump took to social media to deny the report.
“The story in the Washington Post, quoting so-called anonymous sources, which don’t exist, incorrectly states that my tariff policy will be pared back. That is wrong. The Washington Post knows it’s wrong. It’s just another example of Fake News,” he said on Truth Social.
Nvidia, Chip Stocks On Foxconn Growth
Chip stocks were boosted following strong growth for Foxconn, formally known as Hon Hai Precision Industry.
The Apple (AAPL) assembler reported revenue growth of 15% to 2.13 trillion in New Taiwan dollars (around $65 billion) for the October to December period on Sunday.
The company said strong AI-server demand had driven growth at its cloud and network services division.
Nvidia outperformed on the stock market today, rising nearly 5% and rallying further clear of its 50-day line. It also topped the 146.54 buy point of a double-bottom base. CEO Jensen Huang is set to deliver a keynote address at CES 2025 tonight, which could also move the stock and the broader market.
Broadcom and Arm both rallied more than 3%. Taiwan Semiconductor (TSM) popped nearly 4%. TSMC is pulling away from a 205.63 cup-with-handle buy point, according to MarketSurge analysis. It is now extended past the buy zone.
Underlining the broad strength, the SPDR S&P Semiconductor ETF (XSD) jumped nearly 4%. It comes after the chip stocks lagged in December.
FuboTV Stock Soars On Disney Deal
One stock that was shining brighter than almost all other on the stock market was FuboTV.
It rocketed on news it has entered into a definitive agreement for Disney to combine its Hulu + Live TV business with Fubo.
The stock is on track for its largest percent increase on record, according to Dow Jones Market Data.
FuboTV is set for its highest close since Dec. 19, 2023, when it closed at 3.49. IBD does not recommend buying stocks that are priced below the 10 level.
Walt Disney stock was up more than 1%. It is forming a cup-with-handle with a buy point of 118.63, MarketSurge analysis shows.
Please follow Michael Larkin on X at @IBD_MLarkin for more analysis of growth stocks.
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