The Dow Jones Industrial Average was flat even as Boeing (BA) fell amid heavy job cuts, but while other major indexes gained. Flutter (FLUT) was battling back from a sharp decline following an upgrade. Noted investor Cathie Wood unloaded a stock on a powerful run so far this year.
Stocks were mostly positive in early trading. The Dow Jones Industrial Average dipped around 30 points, or 0.1%.
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The Nasdaq composite popped 1% and sits more than 5% above its 50-day moving average. Arm (ARM) was strong in the tech-heavy index, rising around 5%, with Applied Materials (AMAT) and Lam Research (LRCX) also strong. All three rose more than 3%.
China e-commerce play PDD (PDD), which is domiciled in Dublin, Ireland, was one of the worst Nasdaq performers as it fell more than 3%. It fell despite the communist country’s finance minister Lan Fo’an announcing more stimulus measures over the weekend.
Stock Market Today: S&P 500 Hits Record
The benchmark S&P 500 hit record heights as it popped 0.6%. Utilities play Vistra (VST) and Adobe (ADBE) were strong here with gains of more than 3% apiece.
The S&P 500 sectors were off to a mixed start, though a majority were in the green. Technology and communication services were the best performers while materials and energy lagged.
Small caps were fractionally positive, though the Russell 2000 was essentially flat. Growth stocks fared better, with the Innovator IBD 50 (FFTY) exchange traded fund popping 0.8%. It is now nearly 7% above its 50-day moving average.
Boeing Stock Skids Amid Cuts And Profit Warning
There are few industrial behemoths bigger than Boeing. The stock was falling again Monday amid more negative news.
Last Friday the firm announced it plans cut 10% of its global workforce, roughly 17,000 jobs. In addition, it is delating the launch of its 777X jet. It rounded off a triple helping of disappointing developments by warning that third-quarter sales will come in well below analyst consensus.
Boeing stock was already pressured on labor woes, with a crippling strike hitting the firm after talks broke down.
The Dow Jones giant fell nearly 3% in early Monday trading. It had already been sitting at 23-month lows and is more than 9% below its 50-day moving average.
Flutter Stock Rebounds On Upgrade
Gambling play Flutter took a pounding on Friday, ending the session down an eye-watering 8.8%.
Crucially, it managed to find support above the 50-day moving average.
It was rallying back in early trade Monday, popping more than 3%. It has now moved back above a 226.40 entry, according to MarketSurge analysis.
Flutter stock got a boost after Wells Fargo analyst Daniel Politzer upgraded it from equal weight to overweight. He also hiked his target price from 224 to 295.
He said the stock was hit Friday to reflect a “near-worst case U.K. tax scenario,” but he also said the firm should be able to withstand costly regulatory changes “better than smaller competitors.”
Cathie Wood Unloads Stock After Big Rally
A gambler once advised Kenny Rogers that “you’ve got to know when to fold them.”
And it seems ARK Invest’s Wood has taken those words of wisdom to heart, given she locked in some gains on a stock on a rip-roaring run in 2024.
Her ARK Innovation ETF (ARKK) sold 142,619 shares of Robinhood Markets (HOOD), which provides an electronic trading platform to facilitate commission-free trading in securities such as stocks and exchange-traded funds.
As of Friday’s close, Robinhood stock had risen by over 106% for the year so far and it added to those gains today.
That was not the only move made by the fund on Friday. It also jettisoned 106,522 shares in Moderna (MRNA).
This stock is badly underperforming, especially compared to Robinhood. It has fallen more than 41% so far this year.
Three Stocks Near Entries
With stocks trading around highs it is a good time to be watching for stocks testing entries.
Computer networking play Radware (RDWR) is in the 5% buy zone above a consolidation entry of 23.05, MarketSurge analysis shows. This is an early-stage pattern, which is a bonus.
The stock has an EPS Rating of 93 out of 99. Analysts see per-share earnings rising 81% in 2024 and increasing 13% next year.
Big Money has been buying shares of late, with its Accumulation/Distribution Rating coming in at B+. In total, funds currently hold 46% of shares, according to MarketSurge data.
Electronic contract manufacturing stock Celestica (CLS) is in the actionable zone above a consolidation buy point of 63.49.
The stock is an excellent all-around performer, with its IBD Composite Rating a best-possible 99. It also has a perfect EPS Rating of 99. This makes it of interest to those following the IBD investing methodology.
Finally, Amalgamated Bank (AMAL) is in the buy zone above a flat-base buy point of 33.24, according to MarketSurge analysis.
It too is strong all-around performer, and holds an IBD Composite Rating of 98. It sits near the summit of the Northeast banks industry group, which ranks 15th out of the 197 tracked by IBD.
Please follow Michael Larkin on X at @IBD_MLarkin for more analysis of growth stocks.
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