The Dow Jones Industrial Average was up again in early action Monday as the Trump stock market rally continued. Tesla (TSLA) blasted clear of a profit goal even as fellow Magnificent Seven name Nvidia (NVDA) lagged.
Famed fund manager Cathie Wood snapped up a stock that has plunged while Coinbase Global (COIN) cleared an entry as bitcoin surged.
The Dow Jones industrials started out in the hole, but reversed higher and jumped 201 points for the day. This equates to a gain of 0.5%. The Nasdaq composite was lagging, slipping 0.1%. Nevertheless, recent strong gains mean it sits more than 6% above its 50-day moving average
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Top performers on the tech-heavy Nasdaq composite included Grail (GRAL), which popped more than 7%, and Monster Beverage (MNST). Beaten down AI stock Super Micro Computer (SMCI) slid around 10%.
The benchmark S&P 500 squeezed out a 0.2% gain. Bristol Myers Squibb (BMY) outperformed as it rallied around 12%. An experimental schizophrenia treatment from AbbVie (ABBV) failed in a pair of midstage studies.
The S&P 500 sectors were mixed. Financials and consumer discretionary were the best performers while real estate and technology were the worst performing. Weakness in chip stocks was a reason for the latter group’s issues, with the semiconductor fabless group the worst performer among the 197 IBD industry groups.
Volume was up on the Nasdaq but lower on the New York Stock Exchange compared with the same time on Friday.
Small caps were outperforming, with the Russell 2000 rising more than 1%. Growth stocks were also strong, with the Innovator IBD 50 (FFTY) exchange traded fund up around 1%.
Dow Jones Today: Nvidia Stock Is Worst Laggard
The Dow Jones Industrial Average may have been positive, but it was no thanks its most high-profile new member.
Nvidia stock fell around 2% in early trade. It continues to trade in the buy zone above a 140.76 consolidation entry, MarketSurge analysis shows.
Nevertheless, the IBD Leaderboard stock has a strong IBD Composite Rating of 97, with earnings performance in particular a key strength.
Apple (AAPL) also lagged on the Dow as it fell nearly 2%.
In contrast, Salesforce (CRM) was the top performer on the Dow Jones today as it popped more than 4%. Goldman Sachs (GS) was also strong.
Tesla Rally Continues, Stocks Clears Profit Goal
Another Magnificent Seven play was faring rather better.
Tesla stock continued its recent rally as it rose around 7% in early trade. While off initial highs, it popped as much as 32% above a cup-with-handle buy point of 264.86.
While its IBD Composite Rating of 88 out of 99 is still not quite ideal, it has been improving. Its EPS Rating of 77 is a weakness.
Tesla is also among the top 5% of issues in terms of price performance over the past 12 months. It is on track for its highest close since April 19, 2022, according to Dow Jones Market Data.
Cathie Wood Buys Stock After Plunge
There are few fund managers more closely watched than ARK Invest’s Wood. And she was making moves again as she positioned herself for the Trump rally.
Her ARK Innovation ETF (ARKK) bought 76,120 shares of Crispr Therapeutics (CRSP) on Friday.
As of Friday’s close, the stock had fallen more than 43% from its February high of 91.10. The move immediately paid off for Wood as the gene-based medicine stock rallied more than 7% on the stock market today.
However the stock remains stuck below its 200-day moving average for now. The benchmark 200-day is also above its 50-day line. Those following The IBD Methodology look for stocks with a 50-day line above the 200-day.
Additionally, poor overall performance is reflected in its IBD Composite Rating of 32 out of 99.
Among other moves Friday, the fund snapped up 93,243 Illumina (ILMN) shares and 41,794 shares in Trade Desk (TTD). It also sold shares in SoFi Technologies (SOFI) and Unity Software (U).
Outside Dow Jones: Coinbase Clears Entry
With the so-called Trump Trade currently the talk of Wall Street, one noteworthy stock was breaking out on the stock market today.
Coinbase stock cleared a late-stage pattern with an entry point of 283.48, according to MarketSurge analysis. It is already extended from this buy point amid a gain of more than 13%. The stock also can be interpreted as a double bottom with a 272.55 entry.
The cryptocurrency exchange play holds a best-possible IBD Composite Rating of 99. Both earnings and, in particular, price performance are stout.
The price of Bitcoin continued to build on recent powerful gains following the election of Donald Trump, who’s considered more friendly to cryptocurrencies.
Bitcoin was up around 4% over the past 24 hours and was trading at more than $82,000 per coin, according to CoinDesk.
Please follow Michael Larkin on X at @IBD_MLarkin for more analysis of growth stocks.
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