The Dow Jones Industrial Average was flat Monday as index newcomer Nvidia (NVDA) dipped on fears over its Blackwell chips. But other indexes were positive, with Tesla (TSLA) rallying on a move by President-elect Donald Trump. And embattled Super Micro Computer (SMCI) jumped on the stock market today amid plans to avoid delisting.
The Dow Jones index hovered around the break-even point in recent action Monday. Magnificent Seven name Apple (AAPL) and Verizon Communications (VZ) were the top performers. Bill Ackman stock Nike (NKE) lagged.
↑ XThe Nasdaq composite gained 0.7% and is trying to retake its 21-day exponential moving average. It sits around 3% above its 50-day moving average.
Top performers on the tech-heavy Nasdaq composite outside of Tesla and Super Micro included Moderna (MRNA) and AppLovin (APP), both of which rose more than 3%. Warner Bros. Discovery (WBD) rose nearly 3% amid a WSJ report that it has settled its breach of contract lawsuit against the National Basketball Association. Grail (GRAL) was one of the worst performers as it fell nearly 7%.
The benchmark S&P 500 rose 0.5%. Vistra (VST) outperformed with a lift of more than 6%. However Palantir Technologies (PLTR) was struggling as it skidded more than 6%. It speaks to its powerful recent run that it still remains above its 10-day line.
The S&P 500 sectors were nearly all positive. Consumer discretionary and communication services were the best performers while industrials and health care lagged.
Small caps were holding firm, with the Russell 2000 up 0.7%. Growth stocks were faring best though, with the Innovator IBD 50 (FFTY) jumping 2.5%.
Spirit Airlines (SAVE) has had a torrid time since a federal judge earlier this year blocked its planned acquisition by JetBlue Airways (JBLU) on antitrust grounds.
Trading in the stock was halted on the stock market today, with "regulatory concerns" cited as the reason. It comes after the firm filed for bankruptcy protection amid underwhelming sales and rising losses.
The stock is currently down more than 94% for the year and fell more than 61% in the past four weeks alone. At the start of 2024 it was trading for 16.39 per share and its last price was 1.08.
JetBlue agreed to buy Spirit for 33.50 per share back in July 2022 but the move was thwarted back in January.
Tesla Chief Executive Elon Musk was a key ally for Trump during his bruising election campaign. And now it looks like Trump will be returning the favor amid reports his administration is keen to develop federal rules for self-driving cars.
Bloomberg reported that his transition team plans to develop a federal framework for the much-hyped vehicles. While the mooted Tesla robotaxis face no restrictions in states such as Texas and Florida, this could make wider rollouts easier.
Leaderboard Watchlist name Tesla is well extended from an alternate handle buy point at 273.54. It is clear of its short-term and its major moving averages.
Market skeptics would argue the artificial intelligence trade got somewhat overheated in 2024. And Nvidia was getting hit amid fears that the firm's key new Blackwell line of AI chips is literally overheating too.
The Information reported the company is having trouble stopping the chips from getting too hot when connected together in customized server racks.
Investors will no doubt be keen to hear any updates on the issue from the firm's Chief Executive Jensen Huang when the firm reports earnings after the close on Wednesday.
The Dow Jones component is currently trading just below a 140.76 buy point, MarketSurge analysis shows. It has undercut the 21-day exponential moving average but sits above the 50-day line.
Buying the Leaderboard stock now would be risky given earnings are due soon. An approach highlighted by Investor's Business Daily is to use options as a strategy to reduce risk around earnings. It's a way to capitalize on the upside potential of a stock's move around earnings, while reducing the downside risk.
Super Micro Computer has been getting hammered of late amid a host of issues. The stock jumped in early trading Monday on hopes it could avoid at least one of them, for now — a Nasdaq delisting.
The firm has to get approval from the exchange on a plan to regain compliance with listing requirements today. It will have to explain how it will fulfill its requirement to file its delayed annual report.
A source told Barron's the company expects to submit a plan by the deadline. The stock was hammered at the end of August when the firm announced it was delaying the filing of its annual report.
And earlier this month the server maker revealed it would be unable to file its quarterly report on time. In addition, the firm reported at the end of October that its accounting firm, Ernst & Young, had resigned over financial reporting concerns.
The stock is on pace for its largest increase since March 4, when it rose 18.7%. Nevertheless, Super Micro stock sits below the 50-day moving average and is down about 55% in the past four weeks alone. It has also lost about a quarter of its value year to date.
The market was bereft of breakouts in early action on the stock market today. However, one stock moved toward a potential entry.
Burlington Stores (BURL) has formed a flat base with an ideal buy point of 282.49, according to MarketSurge analysis. This is an early stage pattern for the stock, which means it has a better chance of netting good gains for investors if it breaks out.
Burlington is one to watch for now, because earnings are due before the market opens on Nov. 26. Once again, using options could be an option here. Overall performance is good, with its IBD Composite Rating coming in at 91 out of 99.
As a reminder, IBD continues to recommend 80% to 100% exposure for most investors.
Please follow Michael Larkin on X at @IBD_MLarkin for more analysis of growth stocks.
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