The Dow Jones Industrial Average inched up in morning trades Monday, helped by Nike (NKE), while other indexes were mixed. Bitcoin play MicroStrategy (MSTR) rose while famed investor Cathie Wood snapped up a plunging artificial intelligence stock. And Super Micro Computer (SMCI) plunged amid delisting fears on the stock market today.
Trying to fight back after last week's declines, the Dow was off to a steady start, as it was up marginally. Nike, which posts earnings Thursday, was shining with a gain of nearly 2% while Honeywell International (HON) outperformed with a gain of more than 3%. Nvidia (NVDA) lagged, losing nearly 2%.
↑ XThe Nasdaq composite, meanwhile, outperformed as it gained 0.9%. The index is above all its short-term moving averages and sits around 6% above its 50-day moving average.
Top performers on the tech-heavy Nasdaq composite included Broadcom (AVGO), which jumped nearly 7% on top of its 24% surge on Friday. Micron Technology (MU) also climbed nearly 7%, as its earnings are due late Wednesday.
The benchmark S&P 500 rose 0.4%. Teradyne (TER) fared well here as it popped 5%. Palantir Technologies (PLTR) lagged with a decline nearly 4%.
The S&P 500 sectors were mostly positive. Communication services and consumer discretionary were the best performers. Financials and energy lagged the most.
The Russell 2000 rallied out of the red to gain 0.8%. Growth stocks also proved solid, with the Innovator IBD 50 (FFTY) exchange traded fund surging 1.5%.
Cryptocurrency has been an area of strength of late amid rising hopes of broad acceptance. MicroStrategy stock was popping on the stock market today, gaining nearly 4% in early trading.
It comes amid news the largest corporate holder of Bitcoin will be added to the prestigious Nasdaq-100 index.
This also bolsters shares as the stock will be snapped up by the popular Invesco QQQ Trust (QQQ) exchange traded fund, which tracks the Nasdaq index.
It got an additional boost as Bitcoin tokens climbed past the $106,000 level. It has slipped back to trade just below this level but remains up more than 3% over the past 24 hours, according to CoinDesk.
Attempting to catch a falling knife is always a risky strategy. But that investing maxim did not stop ARK Invest Chief Executive Cathie Wood from snapping up Tempus AI (TEM) stock on Friday.
Her firm, where she also serves as chief investment officer, snapped up more than 82,000 shares in Tempus for the ARK Innovation (ARKK) ETF.
Tempus, which had its initial public offering in June, currently holds a dreadful IBD Composite Rating of 13 and it sits below the key 50-day moving average.
These are two red flags for investors who may be considering following in Cathie Wood's footsteps. For one, the stock has a 23 Relative Strength Rating and has yet to turn a profit.
Shares were up slightly Monday. Tempus had fallen more than 48% from from its high of 79.49, which it reached on Nov. 12, at Friday's close.
Tempus uses data and artificial intelligence to improve health care. It aims to help drug discovery and genomic sequencing.
Among other trades, the ARKK fund also bought nearly 159,000 shares in Crispr Therapeutics (CRSP) and added nearly 30,000 shares of Beam Therapeutics (BEAM).
It also but sold around 75,000 Tesla (TSLA) shares amid a recent strong rally for the electric-vehicle stock.
Super Micro Computer stock had a rough session amid rising fears it could end up being delisted from the full Nasdaq composite after all. Nasdaq said Friday it planned to take Super Micro off its prestigious Nasdaq 100 index Dec. 23.
Super Micro was off opening lows but remained down nearly 5%. The moves came in high volume and it lost ground on the important 50-day moving average.
The troubled AI server company has approached Evercore for raising capital, Bloomberg reported. Super Micro is considering both issuing equity and raising debt as it looks to solidify its financial health. The stock was hammered at the end of August when the firm announced it planned to delay the filing of its annual report.
The firm reported at the end of October that its accounting firm, Ernst & Young, had resigned over financial reporting concerns. Then last month, the server maker revealed it would be unable to file its quarterly report on time.
However the stock rallied with gusto after Super Micro unveiled a plan to get its house in order. It received an extension until Feb. 25 to file its annual and quarterly reports, which removed the immediate threat of a delisting.
Even taking its declines into account — and it is well off 2024 highs — the stock remains up around 23% this year.
Please follow Michael Larkin on X at @IBD_MLarkin for more analysis of growth stocks.
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