The Dow Jones Industrial Average fell as Israel appeared to be preparing a ground assault into Lebanon. China's Nio (NIO) soared on an EV deal while automaker Stellantis (STLA) fell on demand worries.  A trio of Warren Buffett stocks, including Apple (AAPL), are near buy points.

Stocks were off to a mixed start as they look to end a seesaw month in positive territory. The Dow Jones index fell almost 200 points, about 0.4%. It comes after it ended last week at fresh highs. Apple and Walmart (WMT) were top performers here, while Boeing (BA) and Salesforce (CRM) lagged with drops of almost 2%.

The Nasdaq composite was also lower, slipping 0.1%. It remains clear of its 50-day moving average. Temu parent PDD (PDD) was strong in the Nasdaq, rising more than 4%. It remains shy of a 152.22 buy point. Also, Arm (ARM) fell nearly 4%. It has lost ground on a cup-with-handle entry of 149.93.

The benchmark S&P 500 fell 0.2% but remains comfortably positive for the month. FedEx (FDX) outperformed as it rallied more than 3%. But Carnival (CCL) lagged. It initially fell nearly 4% despite an earnings beat. It is getting support at the 21-day exponential moving average and pared most losses by 10:40 a.m. ET.

Stock Market Today: Small Caps Gain

The S&P 500 sectors were having a mixed day. Communication services and consumer staples stocks were the best performers. Materials and technology were the worst laggards.

Small caps reversed higher, with the Russell 2000 up 0.3%. Growth stocks also rallied, with the Innovator IBD 50 (FFTY) exchange traded fund up 0.2%. It is holding above its 50-day and 200-day moving averages.

A Tale Of Two Auto Stocks: Nio Soars, Stellantis Skids

China electric vehicle maker Nio was soaring in early trading after the firm announced fresh investment. The firm revealed NIO China, the firm's main operating entity, is getting a new $470 million investment from strategic investors.

Nio stock has rallied around 48% in the past four weeks; however, it remains down about 18% year-to-date. The fact the stock is worth less than 10 per share and is unprofitable means it is unlikely to appeal to those following the IBD Methodology.

In contrast, Stellantis dived around 13% after the firm reduced its full-year outlook. It slashed projections for industrial free cash flow to a range of between minus 5 billion euros and minus 10 billion euros. It had previously expected this metric to be positive.

The firm, whose brands include Fiat, Chrysler and Dodge, cited "global industry dynamics" and warned of lower sales across most regions in the second half of 2024.

The stock has been stuck in a downtrend since hitting a recent high of  29.51 in March. It has a poor IBD Composite Rating of 18 and its earnings line is dipping. Ford (F) and General Motors (GM) fell roughly 2% in sympathy.

These Warren Buffett Stocks Are Near Points

There are few investors more feted than Berkshire Hathaway (BRKB) Chief Executive Buffett. A few stocks held by the firm were in or near entries Monday.

Mastercard (MA) is in a buy zone after clearing a cup-base buy point of 490 more than two weeks ago, according to MarketSurge analysis. This is a first-stage base, a bonus.

It's holding strongly above the 10-week moving average and has been getting support at the 21-day line. The relative strength line is just off recent highs.

Overall performance marks are solid, but not ideal, with the payment stock's IBD Composite Rating coming in at 84 out of 99. Fundamental performance is very good though, with its EPS Rating sitting at 94.

Louisiana-Pacific (LPX) is just past a buy zone after recently breaking out from a flat base entry of 101.89. This is a second-stage pattern, a bonus because earlier-stage bases are more likely to succeed.

At the moment, earnings are its biggest strength, with its EPS Rating coming in at best-possible 99. Earnings are seen rising 56% this year before slowing to 2% growth in 2025. It is in the top 5% of stocks in terms of price performance over the last 12 months.

Apple is closing in on a consolidation entry of 237.27, MarketSurge analysis shows.

The tech giant was up nearly 2% Monday. Its overall performance is strong, with its IBD Composite Rating coming in at 90. Both earnings and price performance are solid.

Israel-Lebanon Tensions Rise, Hezbollah 'Ready'

The crisis in the Middle East continued to escalate Monday.

Israel's defense minister Yoav Gallant said they are prepared to use forces "from the air, sea, and land" as it looks to extinguish the threat from terror group Hezbollah.

The Wall Street Journal reported that Israeli special forces have been carrying out raids in southern Lebanon ahead of a possible broader ground incursion.

Meanwhile, Hezbollah's deputy leader Naim Qassem said the group is ready "for a ground invasion" and that the group will "emerge victorious."

The group is reeling from a series of blows which culminated in an Israeli air strike killing leader Hassan Nasrallah.

Please follow Michael Larkin on X at @IBD_MLarkin for more analysis of growth stocks.

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