The Dow Jones Industrial Average joined a broad rally across all three major indexes on Monday. Palantir Technologies (PLTR) soared in the stock market today on news that the company will join the S&P 500. And famed investor Cathie Wood bought an artificial intelligence stock that fell in value.
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Stocks attempted to bounce back after a heavy fall on Friday, with the Dow industrials gaining more than 400 points shortly after the opening bell on Monday, for a gain of about 1%.
The Nasdaq Composite rose 0.5% but is still well below its key 50-day moving average. Modern (MRNA) impressed here with a 5% increase.
The S&P 500 also did well, gaining 0.7%, but is still trading below its 50-day line. United Airlines (UAL) and Delta Airlines (DAL) shone here.
Monday’s move came after the S&P 500 had its worst week in more than a year. The Nasdaq had its worst week since 2022.
Stock Market Today: Consumer Staples Stocks Shine
But in the stock market today, the S&P 500 sectors were mostly positive. Consumer discretionary and industrials did best. Only utilities, a defensive area, was lower.
Small caps struggled to keep pace with the major indexes, but the Russell 2000 rose 0.7% against the Nasdaq.
Growth stocks outperformed, with the Innovator IBD 50 (FFTY) exchange-traded fund rising more than 2%. However, the fund is rooted below its 200-day moving average.
Cathie Wood buys Tempus AI shares amid nosedive
Some adventurous investors may have seen last week’s pullback as a buying opportunity. Such was the case with ARK Invest Chief Executive Cathie Wood, who bought shares of Tempus AI (TEM) on Friday,
Her company, where she is also Chief Investment Officer, bought more than 111,000 shares of Tempus for the ARK Innovation (ARKK) ETF on Friday.
Tempus, which had its IPO in June, has an IBD Composite Rating of 45. The IPO stock is in the top 10% of issues in terms of price performance over the past 12 months. But at Friday’s close, the stock had fallen 35% from its high of 77, reached on Aug. 22. Shares were down more than 11% in Monday’s morning action.
The ARKK fund also bought nearly 89,000 shares Recursion Pharmaceuticals (RXRX) but sold over 50,000 Trading office (TTD) shares and sold a small portion of them Twist Bioscience (TWST) stock.
Stock Market Today: Palantir Soars Amid S&P 500 Kink
Three stocks rose on the stock market today after it was announced they will join the vaunted S&P 500.
Palantir Technologies has surged nearly 12% and is now well above its 50-day moving average. The AI stock currently has a best-possible Composite Rating of 99 from Investor’s Business Daily. It has recovered since finding support at its 200-day moving average on August 5.
Computer hardware games Dell Technologies (DELL) rose nearly 4% on news of its inclusion in the benchmark index. However, it is still trading near its 200-day line. Its EPS rating of 57 out of 99 is poor.
The third to join the list is the insurance company Erie Indemnification (ERIE), rose nearly 4% on the stock market today. Shares expanded nicely after hitting their 20% profit target from a 411.72 entry.
Three stocks show strength in entry
While the stock market has been challenging lately, three other stocks are showing strong growth near buy points. Tyler Technologies (TYL-), General dynamics (GD) and MGIC investment (MTG) each move towards the nearest entries.
Tyler Technologies is near a flat-base buy point of 593.50, according to MarketSurge analysis. This is a second-stage base, which is still considered early.
The overall performance of the IT Management segment is strong, reflected in the stock’s IBD Composite Rating of 93 out of 99. Tyler ranks in the top 6% of issues in terms of price performance over the past 12 months.
General Dynamics is targeting a flat entry at 302.75. This is also an early stage pattern. The stock has an Earnings Per Share Rating of 84 out of 99. Analysts expect earnings to grow 21% this year and another 13% next year.
General Dynamics is a member of the high-flying Aerospace/Defense industry group. Big Money has been buying up shares of late, with an Accumulation/Distribution Rating of B-.
Finally, MGIC Investment has also formed a flat base. The potential entry point here is at 25.93. The relative strength line is at new highs on the weekly chart, according to MarketSurge analysis.
The mortgage insurance stock has a Composite Rating of 93. On today’s stock exchange, it is in the top 7% of issues in terms of price development over the past 12 months.
Follow Michael Larkin on X, formerly known as Twitter, at @IBD_MLarkin for more growth stock analysis.
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