The Dow Jones Industrial Average closed barely higher Apple (AAPL) popped. Tesla (TSLA) fell amid a denial from Elon Musk Arm (ARM) plummeted after a bearish call. Lowe’s (LOW) and Hilton (HLT), both owned by legendary investor Bill Ackman, are looking to buy.
Meanwhile, there were some other stocks eyeing their entry or expecting a breakout, including BWX Technologies (BWXT), Booking (BKNG) and Helmerich & Payne (HP).
Government bond yields were mixed. The ten-year yield fell by 1 basis point to 4.31%, while the two-year yield rose by 3 basis points to 5.07%. The yield curve remains inverted.
Nasdaq flat and small caps lagging behind
The tech-heavy Nasdaq remains below its 50-day moving average after closing down 0.1%. Sirius XM (SIRI) stood out with an increase of 2.8%.
The benchmark S&P 500 is also still below its 50-day line after limping home with a 0.1% gain. Tyler Technologies (TYL) shone here with a gain of 3.9%.
The S&P 500 sectors ended the session mixed. Energy and technology were the best performers in the stock market today. Consumer durables and real estate were the worst performing sectors.
Small caps were bitten by the bears, with the Russell 2000 dipping below the 200-day line and falling 0.6%. Growth stocks also came under pressure late, with the Innovator IBD 50 ETF (FFTY) giving up gains to close flat.
Dow Jones Today: Apple Stocks Stand Out on iPhone Demand
The Dow Jones Industrial Average ended the day well below its all-time high. It rose only six points and closed almost flat.
Apple shares were the best performers in the index. The stock faded late, rising 1.7% as volume faded as the session progressed.
AAPL shares rose on reports of strong demand for Apple’s high-end iPhone 15 handsets.
The premium iPhone 15 Pro and Pro Max models are “coming out of the gate strong,” according to Wedbush Securities analyst Daniel Ives.
Visa (V) and Travelers (TRV) also performed well on the Dow Jones today, up 1.5% and 1.2% respectively. American Express (AXP) lagged behind with a decline of 2.5%.
Bill Ackman Stocks Eye entries, consider these issues
A number of shares of investment giant Bill Ackman are approaching the buy point. Both are owned by Pershing Square, the hedge fund giant’s firm.
Lowe’s has formed a cup-with-handle base with an ideal buy point of 234.37. However, the fact that the price has fallen below the 50-day moving average is a warning sign.
The relative strength line is also starting to decline. Overall performance is decent, but not ideal. This is reflected in the IBD Composite Rating of 71 out of 99.
Hilton hotel stock has formed a flat base with an ideal buy point of 157.14. The technical picture is better here, with the stock above its short-term and major moving averages.
Right now, the EPS rating of 75 out of 99 isn’t ideal. However, performance is improving, with earnings per share up an average of 74% over the past three quarters.
IBD recommends buying stocks with strong earnings and price performance, rather than stocks with laggards. Look for leaders in strong industries that demonstrate superior earnings growth and revenue, such as those in the IBD 50.
Tesla shares plummet after bearish call, Elon Musk lashes out
Tesla stock was a notable laggard as it fell after a bearish analyst call.
TSLA was hit after Goldman Sachs cut its 2023 and 2024 earnings outlook for the company.
Goldman Sachs analyst Mark Delaney maintained a neutral rating on Tesla shares with a price target of 275, but believes the EV giant could cut further car prices in 2024 to keep volumes high.
Delaney also revised its expected earnings per share for fiscal 2023 from $3.50 to $3.40. For fiscal 2024, he expects earnings per share of $4.65, down from his previous estimate of $4.75.
In the meantime, Elon Musk lashed out on his social media platform X, formerly Twitter, via a news report on Monday. He called a Wall Street Journal article that said Tesla is in early talks with Saudi Arabia to set up a production facility “completely untrue.” The WSJ said the talks are in the very early stages.
Tesla shares fell 3.3%. This caused it to lose some ground at an entry of 299.29, but remained outside the 50-day barrier.
Strong IPO gains fade
Arm Stock skyrocketed in its IPO debut Thursday, but has since given back gains.
It came under further pressure on Monday after Bernstein analyst Sara Russo initiated reporting with an underperform rating and a price target of 46.
She said in a letter to customers that it is “too early to declare” that the company will be an AI winner. She also pointed to concerns about the mobile and consumer markets, where it has a strong presence.
Gun stocks fell more than 4.5%, but closed at the low of the day. It remains above its IPO price but has given up much of its 24.7% opening day gain.
Last week, the Arm IPO priced 95.5 million shares at a price of 51 each, at the high end of the expected range of 45 to 51.
There was a lot of skepticism heading into Arm’s debut.
The chip designs from the British Arm are used by, among others Apple (AAPL), AMD (AMD) and Nvidia (NVDA).
Outside of Dow Jones: These stocks are near buy points
BWX Technologies is in a buy zone after surpassing a flat-base entry of 76.26. It ended the day up 2.2%.
The maker of power generation systems has a strong IBD Composite Rating of 89 out of 99. It ranks in the top 11% of stocks in terms of price performance over the past twelve months.
According to MarketSmith analysis, Travel Stock Booking is on a flat base with a buy point of 3,251.71. The relative strength line has reached new highs.
Booking was recently added to the prestigious IBD Leaderboard list as it rebounded from its 10-week moving average. It has a near-perfect Composite Rating of 98.
Helmerich & Payne has formed a flat base with an ideal buy point of 45.46. The consolidation came after HP shares base tested support at the 50-day moving average.
Follow Michael Larkin on X, formerly known as Twitter, at @IBD_MLarkin for more growth stock analysis.
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