The Dow Jones Industrial Average fell on the stock market today as index newcomer Nvidia (NVDA) dipped on fears over its Blackwell AI chips. But other indexes rose. Tesla (TSLA) rallied on reports President-elect Donald Trump will prioritize a framework for fully self-driving vehicles.
Embattled Super Micro Computer (SMCI) jumped on reports it will submit a filing to avoid Nasdaq delisting.
The Dow Jones industrials fell more than 100 points, or 0.3%. Magnificent Seven name Apple (AAPL) and Verizon Communications (VZ) were the top performers. Bill Ackman stock Nike (NKE) lagged.
↑ XThe Nasdaq composite was up 0.6% and is regaining 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 Warner Bros. Discovery (WBD) and Advanced Micro Devices (AMD), both of which jumped nearly 4%. Grail (GRAL) was one of the worst performers as it fell around 5%.
The benchmark S&P 500 rose 0.3%. Dollar Tree (DLTR) was having a good early inning with a lift of more than 6%. However Palantir Technologies (PLTR) was struggling as it skidded nearly 9%. It speaks to its powerful recent run that it still remains above its 10-day line.
The S&P 500 sectors were mixed. Consumer staples and consumer discretionary were the best performers, an odd mix, while industrials and technology lagged.
Small caps were holding firm, with the Russell 2000 up 0.5%. Growth stocks were off opening highs, but the Innovator IBD 50 (FFTY) outperformed with a 1.1% increase.
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 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.
Nvidia stock 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. 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.
This stock 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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