The Dow Jones Industrial Average and other major indexes climbed Monday as Walt Disney (SAY) jumped. Bitcoin Falls After Announcement Regulators Consider Legal Action Robinhood Markets (HOOD) on its cryptocurrency unit. And You’re here (TSLA) CEO Elon Musk said Berkshire Hathaway(BRKB) Warren Buffett will invest in a new stock.
X
Stocks helped consolidate last week’s gains in afternoon trading, although volume was disappointing in early data. The Dow Jones Industrial Average rose more than 170 points for a gain of 0.5%.
The Nasdaq Composite Index rose 1.2%. Micron technology (IN) was one of the best performers, up 4.7% and moving away from its short-term moving averages, MarketSurge data shows. Furthermore, Ranking Actions Nvidia (NVDA) impressed with a gain of 3.8%.
Additionally, the S&P 500 added 1%. Artificial Intelligence Stocks Super microcomputer (SMCI) stood out more by jumping 6.1%. Tyson Foods (TSN) fell 5.7% after the company beat earnings forecasts but fell short on revenue. Tyson stock issued a sell signal in undercutting the 50-day moving average in significant volume.
The S&P 500 sectors were mostly positive. Technology and communications services fared best. Only consumer staples and real estate values ââwere in negative territory.
Small-cap stocks outperformed, with the Russell 2000 index closing the day up 1.2%. The innovative IBD 50 (FFTY) the exchange-traded fund gained 1.7% on the stock market today.
Dow Jones Today: Walt Disney Pops, Earnings Ahead
Walt Disney (SAY) performed better on the Dow Jones today. It closed up 2.5%. It got a boost after Deutsche Bank reiterated the stock as a buy ahead of Tuesday’s earnings report, which comes before the market opened.
Among Dow Jones stocks, Apple fell nearly 1%, although Morgan Stanley reiterated its overweight, touting growth in the company’s services. Nonetheless, Apple stock is holding above its 200-day line, as well as the rest of its moving averages, following last week’s post-earnings rally.
Boeing (B.A.) reversed lower and ended the session down 0.8%. Amgen (AMGN) had the worst performance on the Dow today, down 3.8%. It pulled back after Friday’s strong 11.8% gain but remains above its moving averages.
Stock market today: Warren Buffett’s stock market gains
Arguably Warren Buffett’s ultimate move, Berkshire Hathaway briefly reversed into negative territory after posting a decline. profits beat this weekend. However, it came back and posted a 1% gain.
Berkshire’s operating profit jumped 39% to $11.222 billion. Total net income, which includes investment gains or losses, plunged 64% to $12.702 billion. This is a smaller drop than analysts feared.
Berkshire’s cash holdings hit a new record of $188.99 billion. The company also repurchased $2.6 billion of its own shares.
Berkshire stock continues to build a flat base with an ideal buy point of 430, according to MarketSurge Chart Analysis. An alternative entry exists at 424.52.
Buffett revealed that the company sold its entire stake in Paramount Worldwide (FOR) at a loss. The company held 63.3 million shares of Paramount Class B stock at the end of 2023. The news did not worry Paramount, which rose 3.1% in the stock market today.
Paramount rose amid reports that the company had entered formal merger talks with a collection of companies led by Sony Group(SONY) Sony Pictures Entertainment and Apollo Global Management (APO). This competes with a competing proposal from Skydance Media, led by Oracle (ORCL) from founder Larry Ellison son, David Ellison.
Elon Musk tells Warren Buffett to buy Tesla stock
Tesla CEO Elon Musk appears to have an eye on Warren Buffett’s bumper cash crop.
âHe should take a position in Teslaâ Musk wrote on on his social media platform X. “It’s an obvious decision.”
He spoke out after a user suggested that Buffett sell all of his Apple shares and instead reinvest them in the electric vehicle sector.
Tesla ended the session up 2%. It is now above the key 50-day moving average, but remains stuck below its 200-day line.
It also holds an EPS rating of 62 out of 99 and does not pay a dividend yield. These two characteristics mean it is unlikely to meet Buffett’s strict investment requirements.
Bitcoin plunges and Robinhood shares slide after SEC legal move
Bitcoin fell more than 1% on Monday, according to CoinDesk. It is now trading at just over $63,000 per token. The move comes after The Wall Street Journal reported The Securities and Exchange Commission plans to sue Robinhood Markets over its cryptocurrency unit.
Robinhood received a so-called âWells Noticeâ from SEC staff over the weekend. The regulator has made a âpreliminary decisionâ to recommend enforcement action against the Robinhood Crypto unit for alleged violations of securities laws.
âWe firmly believe that the assets listed on our platform are not securities and we look forward to engaging with the SEC to clearly explain how any case against Robinhood Crypto would be weak, both on the facts and the law,â said Dan, Robinhoodâs chief legal officer. Gallagher said in a company blog post.
Robinhood stock reversed lower on Monday, falling more than 1%. Among other Bitcoin-related stocks, Global Coinbase (PIECE OF MONEY) rose 1.7%, while ARK 21Shares Bitcoin (ARKB) The ETF gained 1.8%.
Meanwhile, the cryptocurrency miner Digital marathon (MARA) soared by 18%. It looked to erase its 50-day moving average in the process.
Stock Market Today: IBD Industry Groups
Investor’s Business Daily industry groups offered a different perspective on the business action.
Dairy stocks, database software companies, data storage companies, computer hardware companies and cable stocks were among the strongest areas.
In contrast, coal stocks, metal product distributors, meat product companies, steel producers and pharmacies all underperformed in the stock market today.
These actions erase the initial bases
The recent market downturn has given some stocks an opportunity to create uptrends. Arlo Technologies (ARLO) cleared a cup base with an ideal buy point of 13.34, MarketSurge analysis shows this.
This is a first-stage model, which means it is more likely to generate significant gains. However, the company’s earnings release is imminent, presenting buying risk ahead of the earnings announcement. Both price and earnings performance are strong for the security software industry.
Government and military contractor Booz Allen Hamilton (WELL) broke through a flat-based entry of 150.59. This is also a starter base. Overall performance is strong, as evidenced by the stock’s IBD Composite Rating of 94.
Commercial Web Marketplaces (T.W.) is testing a first-stage flat base buy point of 108.84. Tradeweb has a near-perfect Composite Rating of 97 and reported earnings last week.
Please follow Michael Larkin on X, formerly known as Twitter, at @IBD_MLarkin for more analysis on growth stocks.
YOU MIGHT ALSO LIKE:
Stock Market Forecast: Investing in AI and Four Other Predictions
These are the five best stocks to buy and watch now
Join IBD Live every morning for stock tips before the market
This is Warren Buffett’s ultimate stock, but should you buy it?
