The Dow Jones Industrial Average moved higher Monday as Intel (INTC) and Boeing (BA) popped. Palantir Technologies (PLTR) rallied on the stock market today as it joined the S&P 500. And Federal Reserve official Raphael Bostic gave dovish commentary while Tesla (TSLA) Chief Executive Elon Musk issued a boast about his charging network.
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Apple Intelligence Sets Up A New Chip War Between Cloud And Edge Computing
Stocks looked to build on the progress from last week’s Fed-inspired rally. The Dow Jones index ended the day up 0.2%, and notched a new intraday and closing high in the process. Boeing (BA) came in as a top performer here, rising 2% amid news it has issued a “best and final offer” to striking workers.
The Nasdaq composite added 0.1% and now sits about 3% above its 50-day moving average. Arm (ARM) was strong here, rising 2% as it forms a handle with a 149.93 buy point. Also, Micron Technology (MU) moved nearly 3% higher after JPMorgan reiterated an overweight rating on the stock ahead of its quarterly report late Wednesday.
The benchmark S&P 500 eclipsed the other major indexes, as it rose 0.3% and hit a new closing high. The index fell just short of its intraday high, reached in Thursday’s Fed rally. Albemarle (ALB) proved strong here as it rallied more than 3%. But General Motors (GM) was a laggard, falling nearly 2% after Bernstein downgraded it from outperform to market perform.
Stock Market Today: Small Caps Reverse
Breadth was mixed on the stock market today. Advancers held a 5-to-4 edge on the New York Stock Exchange but decliners were ahead 4-to-3 on the Nasdaq. Volume was lower vs. the same time on Friday.
One plus was that a majority of S&P 500 sectors were positive. Utilities and consumer discretionary stocks showed up as the best performers. Health care and technology fell behind the rest of the index.
Small caps saw early gains evaporate. The Russell 2000 dipped 0.2%, but came off session lows. Growth stocks also reversed lower. The Innovator IBD 50 (FFTY) exchange traded fund dipped 0.2%. It remains above its 50-day and 200-day moving averages.
3:37 p.m. ET
Tesla Surges As Elon Musk Boasts
Tesla became one of the top performing issues on the stock market today. The electric-vehicle giant stood near session highs, rising more than 4% in afternoon trade. Tesla stock has formed a cup base, but now sits below its potential buy point of 271, MarketSurge analysis shows.
Meanwhile, Tesla Chief Executive Elon Musk boasted about how his firm had flourished despite obstacles.
“Competitors receive vastly more subsidies than SpaceX or Tesla. The success of SpaceX/Tesla is in spite of competitor subsidies,” Musk wrote on X.
Musk cited the success of Tesla’s EV charging network generous subsidies issued to its rivals.
“Look at how much was given away for a North American Supercharger network to compete against Tesla and it still failed,” Musk said.
Tesla agreed to open 3,500 new and existing Superchargers to non-Tesla customers by late 2024. The move meant the company would be eligible for a subsidy. It is part of a $7.5 billion federal program to expand the use of EVs and reduce emissions.
Magnificent Seven: Amazon Shines And Apple Lags
The rest of the so-called Magnificent Seven group of stocks started the week with mixed results.
Amazon.com (AMZN) fared best as it rallied more than 1%. Meta Platforms (META), a member of Investor’s Business Daily’s Leaderboard, followed close behind, rising nearly 1%. Nvidia (NVDA) was up fractionally.
But Dow Jones component Apple (AAPL) lagged as it fell nearly 1%. And Google-parent Alphabet (GOOGL) and Microsoft (MSFT) slipped marginally.
Energy Stock Kinder Morgan Clears Base
Kinder Morgan (UNM) reached a buy zone after clearing a flat-base buy point of 21.86, according to MarketSurge analysis.
The relative strength line, which stock was slightly below the entry at midday. The base is early-stage, a plus.
There are some other negatives, however. The stock holds an IBD Composite Rating of 76 out of 99, which is far from ideal. Further, its Earnings Per Share Rating comes in at just 70. Analysts expect earnings to rise 12% in 2024 before slowing to 4% growth next year.
Still, Big Money has been a net buyer of late, with its Accumulation/Distribution Rating coming in at B+. In total, funds hold 39% of shares.
The energy infrastructure company, which owns and operates pipelines, makes its headquarters in Houston.
1:50 p.m. ET
Palantir Technology Up Amid S&P 500 Bow
One stock that has rallied furiously in recent times is Palantir Technologies. The artificial intelligence player surged on news it is joining the S&P 500. It joined the index Monday, and managed to reverse higher. It was at session highs with a gain of more than 2% on the stock market today.
Palantir stock has rallied about 79% from its Aug. 5 low and is up a remarkable 121% so far in 2024. It is well clear of its 20% profit goal from a 27.50 entry.
But the S&P 500 is not the only exclusive group with which Palantir is associated. Palantir is a member of Investor’s Business Daily’s Sector Leaders list. This is IBD’s most stringent and powerful screen.
The company got a boost from its Artificial Intelligence Platform, which initially rolled out in early 2023. Palantir is aiming to harness generative AI to spur growth in the commercial market. It already has mined the AI opportunity with government customers for intelligence gathering, counterterrorism and military purposes.
Stock Market Today: Pharma Stock Flashes Sell Signal
Experienced investors will say knowing when to sell a stock is just as important as knowing when to buy.
Regeneron Pharmaceuticals (REGN) triggered a sell signal by dropping more than 3% in recent action and skidding below the important 50-day moving average.
The move came in high volume, which added conviction to the move. The stock has been stuck in a downtrend since clearing its 20% profit goal from a 997.87 entry.
Investors who got in at that point could still lock in some gains now by jettisoning the stock from their portfolio.
The stock also had some other notable negative achievements on the stock market today. It was the worst performer in the S&P 500 and the second worst performer in the Nasdaq 100.
12:21 p.m. ET
Fed’s Bostic Makes Admission, Sees Quicker Rate Cuts
Federal Reserve Bank of Atlanta President Raphael Bostic, who is a voting member on the rate-setting Federal Open Market Committee, offered dovish overtures to investors in a speech Monday that examined the current state of the economy.
“Progress on inflation and the cooling of the labor market have emerged much more quickly than I imagined at the beginning of the summer,” Bostic said. “In this moment, I envision normalizing monetary policy sooner than I thought would be appropriate even a few months ago.”
He said that normalization meant “returning our policy to a place where it is no longer necessary to promote restrictive financial conditions to achieve our inflation target.” Bostic had previously been seen as one of the more hawkish Fed members when it comes to rates.
Chicago Fed President Austan Goolsbee, who is an FOMC alternate member, also gave dovish commentary. He said the Fed has switched its focus to protecting the U.S. labor market and that this “likely means many more rate cuts over the next year.”
However Minneapolis Federal Reserve President Neel Kashkari was a bit more cautious, saying Monday that the central bank “will probably take smaller steps unless the data changes materially.”
Stock Market Today: Insurance Stock Clears Entry
Given recent bullish action, it is a good idea to keep a close eye on any breakouts.
While action was thin on the ground Monday, Unum (UNM) cleared flat-base buy point of 58.17, according to MarketSurge analysis. The stock was slightly below the entry at midday.
This is a first-stage base, which makes it more likely to produce good gains for investors. The relative strength line is rising, but remains off highs.
It holds an IBD Composite Rating of 92 out of 99. The stock has an Earnings Per Share Rating of 78. Analysts see earnings rising 11% this year before gaining a further 5% next year.
The Chattanooga, Tenn.-based company is a leading provider of group and individual disability insurance. It is also a provider of employee benefit programs.
PMI: Business Activity Slips, Still Solid
The first reading of the S&P U.S. services index of purchasing managers slipped to 54.4 in September. This was down from 55.7 in the prior month, and was a two-month low. Nevertheless, figures above 50 mean growth.
However, the preliminary U.S. manufacturing PMI reading skidded to 47 from 47.9. This marked a 15-month low.
10:48 a.m. ET
Dow Jones Today: Intel Stock Pops On These Moves
Intel got a boost late Friday after The Wall Street Journal reported that Qualcomm (QCOM) approached the chip giant about a possible takeover. There was further bullish news after Bloomberg reported that Apollo Global Management (APO) has offered to invest as much as $5 billion in the struggling semiconductor company.
Intel stock popped more than 2%, which made it the top performer on the Dow Jones index Monday. It remains stuck below the important 50-day moving average and is even further below its 200-day line due to prolonged bearish action.
Outside of Intel, Chevron (CVX) and Dow Inc. (DOW) were among the strongest performers in the much-watched index.
In contrast, Nike (NKE) and Walt Disney (DIS) were down, but less than 1%.
Johnson Makes Spending Pledge
House Speaker Mike Johnson is trying to pass a spending bill to avert a government shutdown ahead of the presidential election.
He pledged in a letter to fellow Republicans that the bill will be a “very narrow, bare-bones CR (continuing resolution) including only the extensions that are absolutely necessary.”
“As history has taught and current polling affirms, shutting the government down less than 40 days from a fateful election would be an act of political malpractice,” he said.
Johnson will require Democrat support to pass the bill. This looks likely as top Democrats, including Senate Majority Leader Chuck Schumer, praised the bipartisan negotiations surrounding it. Schumer said in a statement he is “hopeful that we can wrap up work on the CR this week.”
Stock Market Today: Three Stocks Eye Entries
Recent bullish action means this a good time to buying stocks. While there was a lack of breakouts in early action, some noteworthy names are near buy points.
NB Bancorp (NBBK) has formed a cup with handle with an ideal buy point of 19.06, according to MarketSurge analysis. This is a second-stage base. IBD research has found such early patterns have a better chance of making good gains for investors.
All-around performance is strong for the bank stock, with its IBD Composite Rating of 98 out of 99. Its EPS Rating of 68 is not ideal, but analysts see earnings rising 300% this year and 14% in 2025.
Globus Medical, Texas Roadhouse On The Move
Medical products maker Globus Medical (GMED) has formed a flat base, and is shooting for an entry of 74.21. The stock has an EPS Rating of 93 out of 99.
Analysts expect strong performance going forward, as they see per-share earnings rising 23% in 2024 and increasing 17% next year.
Big Money has been buying shares of late, with its Accumulation/Distribution Rating coming in at B-. In total, funds currently hold 54% of shares, according to MarketSurge data.
Finally, Texas Roadhouse (TXRH) is getting closer to a flat-base buy point of 177.72. Its relative strength line is bending higher on its weekly chart, MarketSurge analysis shows.
The restaurant stock has an IBD Composite Rating of 96. Earnings are its strongest suit, with its EPS Rating sitting at 96. Nevertheless, it is among the top 12% of stocks in terms of stock market 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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