Dow Jones Falls Even As Boeing Rallies On CEO News; This Bill Ackman Stock Eyes Entry
The Dow Jones Industrial Average fell even as Boeing (BA) rallied on news that CEO Dave Calhoun is to leave the crisis-hit firm. AMD (AMD) and Intel (INTC) fell while Tesla (TSLA) skidded on a downgrade. A Bill Ackman stock is eyeing a new buy point.
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Meanwhile a trio of promising stocks are currently sitting near entries: Allstate (ALL), Badger Meter (BMI) and Ares Management (ARES).
Stock Market Today: Nasdaq Dips, Small Caps Shine
The shortened trading week was off to a slow start as indexes take a pause amid some recent gains. The Nasdaq composite was down 0.2%. Leaderboard stock Dexcom (DXCM) performed well as it popped more than 4% and headed for a 52-week closing high.
The S&P 500 dropped 0.2% also. Super Micro Computer (SMCI) was the best-performing stock in the benchmark index as it gained nearly 8%. It is back above its short-term moving averages, MarketSurge analysis shows.
The S&P 500 sectors were mixed. Energy and materials were outperforming on the stock market today. Technology and communication services were the worst-performing areas.
Small caps impressed, with the Russell 2000 up 0.6%. Growth stocks were also giving the bears a black eye, with the Innovator IBD 50 ETF (FFTY) rising 1%.
Dow Jones Today: Boeing Up On CEO Exit
The Dow Jones industrials fell 0.3%.
Boeing’s early gains faded. Chief Executive Dave Calhoun is to leave the company amid a broader shake-up. He departs at the end of the year. It comes amid the Boeing 737 Max safety crisis. Calhoun is following in the footsteps of his predecessor Dennis Muilenburg, who departed in 2019 after two 737 Max crashes.
But it was Walt Disney (DIS) led the Dow Jones index today, as it popped more than 2%. The media giant is up nearly 32% so far in 2024.
Outside of Intel (down 2.2%), the likes of McDonald’s (MCD) and Visa (V) were among the worst Dow laggards today. Visa is close to testing its 50-day line.
Bill Ackman Stock GOOGL Eyes Entry
Famed billionaire investor Bill Ackman is one of the world’s top hedge fund managers. One of the stocks held by his firm, Pershing Square, is currently nearing a buy point after a powerful run over the past 12 months.
Google parent Alphabet (GOOGL) is one for your watchlist as it eyes an undefined consolidation pattern with an entry of 153.78, MarketSurge analysis shows. The stock was down around 1% today.
Big Money certainly seems to see a lot of potential in Google stock, with its Accumulation/Distribution Rating coming in at B-. In total, 41% of shares are held by funds.
Google stock has been on a tremendous run over the past 12 months. Friday’s closing price of 150.77 means it had rallied 43% on its level at the same time a year ago.
IBD recommends focusing on stocks with strong earnings and price performance. Look for leaders in strong industries that are showing superior earnings growth and sales, such as those in the IBD 50. That certainly applies to Alphabet.
Magnificent 7: Tesla Stock Digs In After Downgrade
The other so-called Magnificent Seven stocks were having mixed luck Monday.
Tesla stock faded after an early jump; it was down 0.4%. This was impressive given that Mizuho Securities downgraded the stock from buy to neutral. It also lowered its price target to 195 from 310.
Leaderboard stock Nvidia (NVDA) was faring best, rising nearly 2%. The AI play remains extended from its most recent buy point and near all-time highs.
Amazon.com (AMZN) was also having a decent early innings as it rose 0.5%
Meta Platforms (META) fell 0.9% while Apple (AAPL) and Microsoft (MSFT) were both down around 1%.
Stock Market Today: Intel, AMD Stock Dip
A couple of chip giants were selling off amid more worries over China.
Advanced Micro Devices stock fell nearly 2% and is currently testing support at the 50-day moving average. It is down around 22% from its recent high of 227.30, which it hit March 8.
Intel shares remain rooted below their 50-day line after sliding more than 2% Monday. Overall disappointing performance is underlined by its IBD Composite Rating of 67 out of 99.
The chip stocks were under after a Financial Times report that China has begun implementing guidelines to keep their chips out of government PCs and servers. It comes amid ongoing technological tensions between the communist country and the U.S.
The likes of NXP Semiconductors (NXP), Monolithic Power Systems (MPWR) and Qualcomm (QCOM) were other chip names giving up ground.
Outside Dow Jones: 3 Stocks Eye Buy Points
A number of stocks worth keeping an eye on amid the current stock market trend are nearing entries.
Insurance firm Allstate is forming a flat base with an ideal entry point of 168.05, according to MarketSurge analysis. The pattern is second-stage, a bonus.
The stock is in turnaround mode, with the firm returning to profitability in each of the past two quarters. Earnings are seen soaring around 1,200% in 2024 before slowing to still-impressive growth of 30% in 2025.
Badger Meter is in a cup-with-handle base with an ideal entry of 164.81. This is a first-stage pattern. While overall performance is strong, earnings performance is the standout. EPS has grown by an average of 39% over the past three quarters.
The stock holds the is a member of the highflying industrial machinery industry group. The company manufactures residential and commercial water meters.
Ares Management is another one to watch as it forms a flat base with an ideal buy point of 139.40. It is trying to move higher after getting support at its 21-day exponential moving average.
Overall performance is very strong, with its IBD Composite Rating coming in at 95. Earnings performance is particularly strong too, with Ares stock holding an EPS Rating of 97.
Please follow Michael Larkin on X, formerly known as Twitter, at @IBD_MLarkin for more analysis of growth stocks.
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