The Dow Jones Industrial Average also closed slightly higher Apple (AAPL) popped up. Tesla (TSLA) fell amid a denial from Elon Musk Arm (ARM) fell after a bearish call. Lowe’s (LOW) e Hilton (HLT), both held by legendary investor Bill Ackman, are keeping an eye on buy points.
Meanwhile, there were other stocks eyeing breakouts entering or staging, including BWX Technologies (BWXT), Reservation (BKNG) e Helmerich and Payne (HP).
Treasury bond yields were mixed. The 10-year yield fell 1 basis point to 4.31%, while the two-year yield rose 3 basis points to 5.07%. The yield curve remains inverted.
Nasdaq Flat As Small Cap Lag
The tech-heavy Nasdaq remains below its 50-day moving average after closing 0.1% higher. Sirius XM (SIRI) stood out with an increase of 2.8%.
The benchmark S&P 500 is also still below the 50-day mark after returning home with a 0.1% gain. Tyler Technologies (TYL) stood out in this context, gaining 3.9%.
S&P 500 sectors ended the session mixed. Energy and technology performed best on the stock market today. The consumer discretionary and real estate sectors were the worst performing sectors.
Small caps were bitten by bears, with the Russell 2000 falling below the 200-day mark, losing 0.6%. Growth stocks also came under pressure late, with the Innovator IBD 50 ETF (FFTY) giving up gains to close flat.
Dow Jones today: Apple shares shine amid iPhone demand
The Dow Jones Industrial Average ended the day well below its highs. It rose just six points to finish virtually flat.
Apple shares were the best performers in the index. The stock fell late, rising 1.7%, with volume declining throughout the session.
AAPL shares were boosted by reports of strong demand for Apple’s high-end iPhone 15 phones.
According to Wedbush Securities analyst Daniel Ives, the premium iPhone 15 Pro and Pro Max models “are tracking strongly right from the start.”
Visa (V) e The travelers (TRV) also performed well today on the Dow Jones, up 1.5% and 1.2% respectively. American Express (AXP) lagged, losing 2.5%.
Eyewitness accounts of Bill Ackman’s actions, consider these issues
A pair of stocks held by investment giant Bill Ackman are nearing buy points. Both are held by hedge fund giant Pershing Square.
Lowe’s has formed a cup-and-handle base with an ideal buy point of 234.37. However, the fact that it fell below the 50-day moving average is a wake-up call.
The relative strength line is also starting to decline. Overall performance is decent, but not ideal. This is reflected in its IBD Composite Score of 71 out of 99.
Shares of Hilton Hotel formed a flat base with a sweet buy point of 157.14. In this case the technical picture is better, with the stock above the main and short-term moving averages.
Its EPS rating of 75 out of 99 isn’t ideal right now. Performance is improving, however, with EPS rising an average of 74% over the past three quarters.
IBD recommends buying stocks with strong earnings and price performance rather than laggards. Look for leaders in strong industries that show superior earnings and sales growth, such as those in the IBD 50.
Tesla Stock Hit by Bearish Call, Elon Musk Lashes Out
Tesla shares were a notable laggard as they were penalized lower following a bearish call from analysts.
TSLA was hit after Goldman Sachs lowered its 2023 and 2024 profit outlook for the company.
Goldman Sachs analyst Mark Delaney maintained a neutral rating on Tesla shares with a price target of 275, but believes the electric vehicle giant could make further vehicle price cuts in 2024 to keep volumes high.
Delaney also revised his forecast EPS guidance for fiscal 2023 to $3.40, down from $3.50. For fiscal 2024, it expects earnings per share of $4.65, down from its previous estimate of $4.75.
In the meantime, Elon Musk lashed out on its social media platform X, formerly Twitter, during a news story Monday. He called “absolutely false” a Wall Street Journal article that said Tesla is in initial talks with Saudi Arabia to set up a manufacturing plant. The WSJ said the talks are at a very early stage.
Tesla shares fell 3.3%. This caused it to lose ground with an entry at 299.29, but it remains away from the 50-day line.
Strong arm IPO gains fade
The gun stock skyrocketed in its IPO debut on Thursday, but has since given back gains.
It came under further pressure on Monday after Bernstein analyst Sara Russo initiated coverage with an underperform rating and a 46 price target.
He said in a note to clients that it is “too early to declare” that the company will be an AI winner. He also highlighted concerns about the mobile and consumer markets where it has a strong presence.
Gun shares fell more than 4.5% but closed at daily lows. It remains above its IPO price, but gave back much of its 24.7% opening day gain.
Last week, Arm’s IPO priced 95.5 million shares at 51 each, at the high end of its expected range of 45 to 51.
There had been a lot of skepticism surrounding Arm’s debut.
UK-based Arm’s chip designs are used by the likes of Apple (AAPL), AMD (AMD) e Nvidia (NVDA).
Outside of the Dow Jones: These stocks are near buy points
BWX Technologies is in the buy zone after breaking out of a flat-base entry of 76.26. It closed the day up 2.2%.
The power generation systems maker has a strong IBD Composite Rating of 89 out of 99. It is in the top 11% of stocks in terms of price performance over the past 12 months.
According to MarketSmith analysis, Travel Stock Booking is stable with a buy point of 3,251.71. The relative strength line has reached new highs.
Booking was recently added to the prestigious IBD Leaderboard list as it moved away from its 10-week moving average. It has a near-perfect composite score of 98.
Helmerich & Payne formed a flat base with a sweet buy point of 45.46. The consolidation formed after HP shares basic tested support at the 50-day moving average.
Follow Michael Larkin on X, formerly known as Twitter, at @IBD_MLarkin for a deeper analysis of growth stocks.
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