Stock indexes rose on Monday as Donald Trump’s media companies rallied following the Supreme Court ruling. NVIDIA (NVDA) is a member of the Magnificent Seven. Tesla (TSLA) surges on AI news; and Chewy CHWY shares plummeted on the stock market today after meme trader Roaring Kitty acquired a majority stake in the pet food maker.
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As the second half of 2024 began, indexes mostly finished higher. The Dow Jones Index finished up nearly 51 points, or 0.1%, while the Dow Jones Industrial Average finished up 1.2 points, or 0.2%.
The tech-heavy Nasdaq Composite Index turned higher, rising 0.8%. MongoDB (MDB) performed well, rising 5.4%, but the database software maker remains below its 200-day and 50-day moving averages.
Meanwhile, the S&P 500 rose 0.3%. Constellation Energy (CEG) led the index up 2.4%, but Cruise stocks fell. carnival (CCL) and Norwegian Cruise Line (NCLH) sank by more than 5% each as Category 4 storm Hurricane Beryl made landfall in Grenada, a popular Caribbean cruise destination.
Most S&P 500 sectors ended lower, with Technology and Consumer Discretionary, which had early laggards, performing the best, while Materials and Industrials were the worst performers on the stock market today.
Small-cap stocks struggled, with the Russell 2000 down 0.9%. The Innovator IBD 50 (FFTY) exchange-traded fund recovered from negative territory to post a modest gain.
Treasury yields helped small-cap stocks trade in tough conditions: The 10-year Treasury note rose 14 basis points to 4.47%, while the two-year note rose 5 basis points to 4.77%.
The Magnificent 7: Nvidia hits back, Elon Musk brags about AI
Most of the so-called “Magnificent Seven” stocks rose on Monday. Nvidia shares turned higher, climbing 0.6% and surviving the red after Morgan Stanley raised its price target on the stock. Analyst Joseph Moore maintained an overweight rating and raised his price target to 144 from 116.
Tesla shares surged more than 6% today, outperforming the stock price, which has reclaimed its 200-day moving average for the first time since January 10th.
Tesla shares surged after Wells Fargo added the stock to its “strategic ideas” list while maintaining an underweight rating, seeing “slower delivery growth due to weaker demand and reduced margins from price cuts.”
The rise was also fueled by Tesla CEO Elon Musk’s boasting on social media platform X about the potential of the company’s upcoming artificial intelligence model. Musk made the remarks while apologizing for a “delay” in the release of the company’s latest fully self-driving feature monitoring version, which is now being rolled out to employees. Musk partially blamed “too much training on interventions and not enough training on normal driving” for the delayed rollout.
“We have high expectations for the next generation of AI models after this, which will increase the number of parameters by about five times, which is very difficult to achieve without upgrading the vehicle inference computer,” Musk said. Musk also said the “increased number of parameters” shows how well the AI models understand the nuances of reality.
Meanwhile, Tesla investors should also keep an eye on the company’s second-quarter global vehicle deliveries, which are scheduled for release on Tuesday.
apple AAPL rose nearly 3% even as UBS reiterated its neutral rating on the stock, citing declining iPhone market share in China. The stock has risen out of a 5% buy range from an ideal cup base buy point of 199.62.
Among the other Magnificent Seven players: Amazon (AMZN) rose 2% Microsoft (MSFT), the parent company of Google, rose 2.2%. alphabet (GOOGL) rose 0.5%. Meta Platform (META) was up slightly on the stock market today.
Updated 12:22 p.m.
Donald Trump’s stock rises following Supreme Court ruling
Trump Media & Technology The Dow Jones stocks rose after the Supreme Court ruled that former presidents are entitled to absolute immunity from prosecution for official acts while in office, but the court also ruled that presidents have no immunity for non-official acts.
The ruling means that the federal election interference lawsuit against Donald Trump is unlikely to be heard before the November election, which will see him face off against President Joe Biden.
The Supreme Court decided the case 6-3, divided along ideological lines, with Chief Justice John Roberts writing that “the President cannot be prosecuted for the exercise of core Constitutional powers and, at a minimum, the President enjoys presumptive immunity from prosecution for all acts of official conduct.”
Justice Sonia Sotomayor wrote in dissent that the decision “makes a mockery of the principle” that “no one is above the law.”
Trump himself touted the ruling as a “huge victory for our Constitution” on his social media platform, Truth Social, which is owned by Trump Media & Technology.
The ruling sends the federal election interference case back to Judge Tanya Chutkan of the U.S. District Court for the District of Columbia, who will have to decide when to hold a trial and which, if any, charges should be dismissed.
Trump Media shares rose about 3% on the stock market today. They are supported by the 200-day moving average but are below the 50-day moving average. They are down nearly 58% from their March high of 79.38.
Updated 12:01 p.m.
Stock market today: These stocks will test your entries
Many stocks tested entries in the stock market today, but breakout attempts failed.
Energy Transport Play Kinetic (KNTK) tested a flat base entry at 41.77, according to MarketSurge analysis.
It’s a first-stage location, which means it has a good chance of making big gains. Overall performance is solid, with an IBD Composite Rating of 92 out of 99. The company, which operates in the Permian Basin, has segments including midstream logistics and pipelines.
Energy stocks Multiple X (MPLX) reversed downwards after testing a flat-based buy point at 42.90.
The stock has performed well overall and has a good earnings track record, which is reflected in its EPS Rating of 93 out of 99. However, the fund holds just 28% of MPLX shares, which is less than ideal.
S&P 500 constituent stocks Waste Management (WM) also saw its early gains slow after initially rising above 214.58. It reached a consolidation low and then moved higher. The relative strength line is also gaining momentum after falling.
A barking cat leaps at Chewie, knocking him down 34%
Chewy’s shares initially soared before being pummeled by stock-market bears. Pet-supply stocks first surged after news broke that Keith Gill, a meme-stock trader known on social media as “Roaring Kitty,” had acquired a large stake in the retailer.
But bulls didn’t seem to be trying to defend the stock as the initial gains faded, with the stock tumbling nearly 6% and dropping below its 10-day moving average. It’s down more than 34% from last week’s high of 39.10.
According to a June 24 SEC filing, Gill owns 9 million 1000 shares of the company, or 6.6% of the company’s stock. Based on Friday’s closing price of $27.24, his stake would be worth $245.18 million. The stock was down 6% at midday.
The investor posted a photo of a cartoon dog to X on June 27, giving followers a hint about his latest move.
Among the meme stocks are GameStop (GME) fell nearly 7%. AMC Entertainment (AMC) was flat.
Updated 10:37 a.m. ET
Stock Market Today: Boeing signs deal with Spirit AeroSystems
Among the Dow Jones stocks, the big news was the aerospace giant Boeing (BA) finally reached an agreement Spirit AeroSystems (SPR).
Boeing has agreed to buy supplier Spirit Airlines in an all-stock deal for $4.7 billion as it seeks to gain greater control over its supply chain following recent safety blunders.
This comes amid reports that the Department of Justice has informed Boeing that it will bring fraud charges against the company, which is accused of violating a 2021 settlement reached after the 2018-2019 737 MAX crashes.
The proposed plea deal would also impose fines on Boeing and create an independent agency to monitor safety and compliance practices. The Virginia-based company has until the end of the week to respond.
Boeing shares rose more than 2% on the stock market today, while Spirit AeroSystems shares rose more than 3%.
meanwhile, Merck (MRK) was the best performer on the Dow Jones today, rising nearly 4%. Caterpillar (CAT) lagged behind, falling more than 2%.
Follow Michael Larkin on X (formerly Twitter). translator For a more in-depth analysis of growth stocks, see here.
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