The Dow Jones Industrial Average took part in a broad rally for all three major indexes Monday. Palantir Technologies (PLTR) soared on the stock market today amid news it will join the S&P 500. And famed investor Cathie Wood snapped up a plunging artificial intelligence stock.
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After a hard fall Friday, stocks tried to fight back, with the Dow industrials gaining more than 400 points shortly after the opening bell Monday. This equates to a gain of about 1%.
The Nasdaq composite rose 0.5% but remains well below its key 50-day moving average. Moderna (MRNA) impressed here as it surged 5%.
The S&P 500 was also solid with a gain of 0.7%, but still trades below its 50-day line. United Airlines (UAL) and Delta Air Lines (DAL) were shining here.
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: Consumer Discretionary Stocks Shine
But on the stock market today, the S&P 500 sectors were mostly positive. Consumer discretionary and industrials fared best. Only utilities, a defensive area, was lower.
Small caps had been suffering to keep up with the major indexes, but the Russell 2000 moved ahead of the Nasdaq with a gain of 0.7%.
Growth stocks fared better, with the Innovator IBD 50 (FFTY) exchange traded fund soaring more than 2%. The fund is rooted below its 200-day moving average, however.
Cathie Wood Snaps Up Tempus AI Stock Amid Plunge
Some adventurous investors would have seen last week’s pullback as a buying opportunity. That was the case with ARK Invest Chief Executive Cathie Wood, who snapped up Tempus AI (TEM) stock on Friday,
Her firm, where she also serves as chief investment officer, snapped up more than 111,000 shares in Tempus for the ARK Innovation (ARKK) ETF on Friday.
Tempus, which had its initial public offering in June, boasts an IBD Composite Rating of 45. The IPO stock has been residing in the top 10% of issues in terms of price performance over the past 12 months. But at Friday’s close the stock had fallen 35% from its high of 77, reached on Aug. 22. Shares plunged more than 11% in morning action Monday.
The ARKK fund also bought nearly 89,000 shares in Recursion Pharmaceuticals (RXRX) but sold more than 50,000 Trade Desk (TTD) shares and sold a tiny sliver of Twist Bioscience (TWST) stock.
Stock Market Today: Palantir Pops Amid S&P 500 Nod
A trio of stocks were rallying on the stock market today amid news they will join the vaunted S&P 500.
Palantir Technologies surged nearly 12% 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 nearly 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 nearly 4% on the stock market today. Shares are well extended after previously hitting their 20% profit target from a 411.72 entry.
Three Stocks Show Strength Near Entries
While the stock market action has been challenging of late, another trio of stocks are showing strength near buy points. Tyler Technologies (TYL), General Dynamics (GD) and MGIC Investment (MTG) are each moving toward near entries.
Tyler Technologies is near a flat-base buy point of 593.50, according to MarketSurge analysis. This is a second-stage base, which still counts as early.
All-around performance is strong for the information technology management play, which is reflected in the stock’s IBD Composite Rating of 93 out of 99. Tyler is in the top 6% of issues in terms of price performance over the past 12 months.
General Dynamics is eyeing a flat base entry of 302.75. This is also an early stage pattern. The stock has an Earnings Per Share Rating of 84 out of 99. Analysts see earnings jumping 21% this year and rising a further 13% next year.
General Dynamics is a member of the highflying Aerospace/Defense industry group. Big Money has been snapping up shares lately, with its Accumulation/Distribution Rating coming in at B-.
Finally, MGIC Investment has also formed a flat base. The potential entry point here sits at 25.93. The relative strength line sits at fresh heights on its weekly chart, MarketSurge analysis shows.
The mortgage insurance stock boasts a Composite Rating of 93. On the stock market today, it sits among the top 7% of issues in terms of price performance over the last 12 months.
Please follow Michael Larkin on X, formerly known as Twitter, at @IBD_MLarkin for more analysis of growth stocks.
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