In today’s stock market, the Dow Jones Industrial Average saw a dip as Tesla (TSLA) stole the spotlight from other top stocks like Apple (AAPL) and Nvidia (NVDA). Renowned investor Cathie Wood made a bold move by purchasing a struggling stock, while Berkshire Hathaway (BRKB) faced challenges causing a drop in its value. On the flip side, some notable companies like Ollie’s Bargain Outlet (OLLI) and Dream Finders Homes (DFH) showed promise by testing potential buy points, with Qualcomm (QCOM) also making moves towards a potential buy opportunity.
The Nasdaq composite held steady with a slight gain of 0.1%, led by Palo Alto Networks (PANW) which saw a significant jump of about 9%. Meanwhile, the S&P 500 struggled, down 0.2%, with Domino’s Pizza (DPZ) performing well with a nearly 6% rise fueled by strong earnings.
In the realm of technology and energy sectors, there was outperformance, while communication services and utilities faced challenges. Small caps saw a reversal with the Russell 2000 rising by 0.6%. Growth stocks, on the other hand, thrived with the Innovator IBD 50 ETF (FFTY) surging over 2%.
Treasury yields were on the rise, with the 10-year Treasury note increasing by 2 basis points to 4.28% and the 30-year note inching up by 4 basis points to 4.42%. The 5-year and 2-year yields also saw increases, indicating a shift in the market.
As for the Dow Jones Industrial Average, early gains were erased, with Walmart (WMT) standing out as a top performer following a 3-for-1 stock split. Salesforce (CRM) also saw gains, while Verizon Communications (VZ) struggled the most on the index. Warren Buffett’s Berkshire Hathaway faced challenges after an earnings report over the weekend, with the stock tumbling around 2%.
Investor Cathie Wood made headlines by purchasing shares of Roku (ROKU) amidst a significant pullback in the stock. While Roku stock saw a slight dip today, it remains below key moving averages, indicating bearish sentiment. Other moves made by Wood’s firm included selling shares in Twilio (TWLO) and Teledoc (TDOC).
In the Magnificent Seven stocks, Tesla led the pack with a nearly 4% rally, while Nvidia (NVDA) also saw positive movement. Google-parent Alphabet (GOOGL) faced challenges, falling 4%, amid criticism of its artificial intelligence system. Other tech giants like Apple, Microsoft, Meta Platforms, and Amazon.com were either flat or down.
Chinese EV stock Li Auto (LI) surged over 19% after reporting strong fourth-quarter earnings, while other EV stocks like Rivian Automotive (RIVN), BYD (BYDDF), and Lucid (LCID) also saw gains. In other news, Ollie’s Bargain Outlet and Dream Finders Homes showed promise with potential breakout opportunities, while Qualcomm eyed a flat-base buy point.
Overall, the stock market today saw a mix of gains and losses across various sectors and individual companies, highlighting the dynamic nature of the market. Stay tuned for more updates and analysis on growth stocks from X’s very own Michael Larkin.