The Dow Jones Industrial Average climbed, but Donald Trump-linked entity Digital World Acquisition (DWAC) tumbled Monday amid more legal woes. Apple (AAPL) and Tesla (TSLA) rallied while Alphabet (GOOGL) surged on the stock market today. And famed investor Cathie Wood snapped up a plunging stock.
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Meanwhile, a trio of noteworthy stocks are near buy points. Alphabet, Neurocrine Biosciences (NBIX) and Arista Networks (ANET) are all eying entries.
The Nasdaq composite bounced back from last week’s losses as it surged more than 1% heading into the close. PDD Holdings (PDD) performed well here as it rallied more than 4%.
The benchmark S&P 500 climbed nearly 1%. Match (MTCH) fared well here as it rose nearly 5%. But the stock remains below its major moving averages, MarketSurge analysis shows.
The S&P 500 sectors were all positive. Communication services and consumer discretionary were outperforming on the stock market today. Real estate and health made the slimmest gains.
But small caps lagged, with the Russell 2000 dipping 0.1%. Growth stocks inched higher, with the Innovator IBD 50 ETF (FFTY) up 0.2%.
Dow Jones Today: Disney Stock, Salesforce Shine
The Dow Jones industrials lagged the other major indexes but still managed to rise nearly 150 points. This equates to a 0.4% gain.
Walt Disney (DIS) was among the best performers as it rose nearly 2%. Salesforce (CRM) and Caterpillar (CAT) also outperformed with similar gains.
Boeing (BA) lagged the most on the Dow Jones today as it fell more than 1%. The loss comes amid ongoing worries about construction standards at the aviation giant.
Donald Trump Entity Dives Amid Bond News
The Donald Trump-linked special purpose acquisition company Digital World Acquisition (DWAC) took a tumble after it emerged that the former president is having trouble meeting bond requirements for his New York fraud case.
His attorneys said in a court filing that he cannot fully secure the bond required as he tries to appeal the $454 million civil business fraud judgment.
“Enforcing an impossible bond requirement as a condition of appeal would inflict manifest irreparable injury on Defendants,” his lawyers said in the filing.
Digital World, the blank-check company poised to merge with the Trump Media and Technology Group, tumbled nearly 8%. It has now fallen below the 50-day moving average, a sell signal.
Even with this decline, Digital World remains firmly in the green so far this year. It is up more than 108% thus far this year, though down nearly 27% in the last four weeks
Stock Market Today: Cathie Wood Buys On The Dip
Elsewhere, ARK Invest Chief Executive Cathie Wood showed Monday she is one investor unafraid of buying on the dip, a perilous strategy for many investors.
Her firm, where she also serves as chief investment officer, bought more than 17,000 Roku (ROKU) shares on Friday for the ARK Innovation (ARKK) exchange traded fund.
Roku stock is currently stuck below its key 50-day and 200-day moving averages, MarketSurge analysis shows. Shares now sit more than 41% below their recent high of 108.84, reached on Dec. 14.
The firm also bought nearly 34,000 shares in Moderna (MRNA) for its flagship fund. This stock has also skidded from highs but inched up today. The fund also bought some PagerDuty (PD) and sold some Twilio (TWLO).
Trying to catch a falling knife can be tempting, but often leaves investors nursing losses. IBD recommends buying stocks with strong earnings and price performance. Look for leaders in strong industries that are showing superior earnings growth and sales.
Magnificent Seven: Nvidia AI Event; Apple Analyst Call
The so-called Magnificent Seven group of stocks were making progress on the stock market today.
Nvidia stock saw gains fade but remained up almost 1%. It got a boost after HSBC reiterated a buy rating on the stock and hiked its price target from 880 to 1,050.
It comes as Nvidia’s four-day GTC Conference starts. A new AI chip and a slew of other AI announcements are expected in the coming days.
Apple stock rallied more than 1%, but recent declines mean it is stuck below its major moving averages. It comes after KeyBanc reiterated a “sector weight” rating on the stock.
More important, AAPL shares were rising after Bloomberg reported that Apple is in talks with Google-parent Alphabet to license and build its Gemini AI engine into iPhones.
Stock Market Today: Tesla Stock Manages A Gain
Tesla stock managed to surge higher on the stock market today despite Goldman Sachs reiterating its neutral rating and lowering its price target to 190 from 220 amid “market headwinds.” The company said it plans to raise prices on its Model Y cars.
The stock jumped more than 6% but remains rooted firmly below its 50-day and 200-day moving averages. Tesla is down about 30% so far this year.
Meta Platforms (META) was up 2%. It comes after Mizuho reiterated its buy rating on Meta stock. The price target is 575. Analyst James Lee also named Meta one of the firm’s top picks.
Microsoft (MSFT) and e-commerce giant Amazon.com (AMZN) both made fractional gains.
Outside Dow Jones: 3 Stocks Near Entries
One of the best-performing Magnificent Seven names is among a group of stocks nearing buy points. Google-parent Alphabet was off highs but remained up more than 4% as it gets closer to a consolidation-pattern entry of 153.78, according to MarketSurge analysis.
Overall performance is very strong at the search giant, with its IBD Composite Rating a solid 94. Earnings are seen rising 20% this year and 15% in 2025. GOOGL was making an even better gain than Apple amid the AI hookup buzz.
Meanwhile, Neurocrine Biosciences rose around 1% as it gets close to a flat-base entry of 143.35. This is a second-stage base, a bonus. This biotech stock has a perfect IBD Composite Rating and is in the top 10% of stocks in terms of price performance over the past 12 months.
And Arista Networks was up nearly 4% on the stock market today as it looks to reach a flat-base entry of 292.66 on a weekly chart. Big Money of late has been buying up Arista stock, with its Accumulation/Distribution Rating coming in at B+.
Please follow Michael Larkin on X, formerly known as Twitter, at @IBD_MLarkin for more analysis of growth stocks.
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