The Dow Jones Industrial Average remained slightly higher on the stock market today. Apple (AAPL) was lower despite a bullish analyst call while Walt Disney (DIS) impressed. Warren Buffett stock Berkshire Hathaway (BRKB) was steady after reporting earnings over the weekend.
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Stocks were trying to build off last week’s gains. The Nasdaq composite rose 0.7%. Micron Technology (MU) was a top performer, rallying more than 4% and pulling away from its short-term moving averages, MarketSurge shows. AI stock Super Micro Computer (SMCI) did even better with a gain of more than 5%.
The S&P 500 was also up 0.6%. Tesla (TSLA) did well on the benchmark index as it rose more than 1%. But Tyson Foods (TSN) fell more than 7% despite an earnings beat after revenue came up short. It flashed a sell signal by undercutting the 50-day moving average in heavy volume.
The S&P 500 sectors were mostly positive. Energy and technology were faring best. Only consumer staples stocks were in negative territory.
Stock Market Today: Small Caps Pop, IBD 50 Shines
Small-cap stocks outperformed, with the Russell 2000 rising more than 1%. The Innovator IBD 50 (FFTY) exchange traded fund did even better with a 1.5% lift on the stock market today.
Treasury yields were mixed. The 10-year Treasury note was steady at 4.50% as was the 30-year at 4.66%. The five-year yield rose one basis point to 4.49% as did the two-year, which sat at 4.81%. They all remain off recent highs.
Dow Jones Today: Bullish Calls For Apple Stock, Disney
The Dow Jones Industrial Average was up less than 60 points, a gain of 0.2%. It was off early highs.
Apple fell 0.6% despite that Morgan Stanley reiterated an overweight rating on the stock. It touted services growth at the company. Nevertheless, Apple stock is holding above its 200-day line following last week’s post-earnings rally, as well as the rest of its moving averages.
Walt Disney did better as it rose nearly 2% after Deutsche Bank reiterated the stock as a buy heading into Tuesday’s earnings report. Chevron (CVX) was the top performer on the Dow Jones today as it also rose nearly 2%.
Amgen (AMGN) lagged most as it fell around 4%. It is backing off after Friday’s strong gain of 11.8% but remains above its moving averages.
Warren Buffett Stock Berkshire Steady After Earnings
Berkshire Hathaway is arguably the ultimate Warren Buffett stock. It was weaving between negative and positive territory after turning in an earnings beat over the weekend.
Operating earnings jumped 39% to $11.222 billion. Total net income, which includes investment gains or losses, plunged 64% to $12.702 billion. This was a smaller decline than analysts feared.
Berkshire’s cash swelled to a fresh record of $188.99 billion. The firm also bought back $2.6 billion worth of its own shares.
Berkshire stock continues to build a flat base with an ideal buy point of 430, according to MarketSurge chart analysis. An alternative entry exists at 424.52.
Buffett disclosed the firm had sold its entire stake in Paramount Global (PARA) at a loss. The firm owned 63.3 million Paramount Class B shares at the end of 2023.
The news did not faze Paramount, which rose more than 2% on the stock market today. It was up amid reports the firm has entered formal merger negotiations with a group led by Sony Pictures Entertainment and Apollo Global Management (APO). This is competition for a rival proposal by Skydance Media, which is led by Oracle (ORCL) founder Larry Ellison’s son, David Ellison.
Stock Market Today: IBD Industry Groups
The Investor’s Business Daily industry groups offered a different perspective on the trading action.
Dairy products stocks, database software plays, data storage companies, cable stocks and health insurers were among the strongest groups.
In contrast, coal stocks, tire plays, meat products firms, consumer electronics retailers and drugstores were all underperforming on the stock market today.
These Stocks Clear Early Stage Bases
The recent stock market pullback gave issues an opportunity to build some bullish patterns.
Arlo Technologies (ARLO) cleared a cup base with an ideal buy point of 13.34, MarketSurge analysis shows.
This is a first-stage pattern, which means it is more likely to net big gains. However, the company’s earnings report is imminent, which presents a risk to buying before the results are announced. Its price and earnings performances are both solid for the security software play.
Government and military contractor Booz Allen Hamilton (BAH) has cleared a flat-base entry of 150.59. This is also an early-stage base. Overall performance is strong, reflected in its IBD Composite Rating of 94.
Tradeweb Markets (TW) is testing a first-stage flat base buy point of 108.84. It has a near-perfect Composite Rating of 97 and reported earnings last week.
Please follow Michael Larkin on X, formerly known as Twitter, at @IBD_MLarkin for more analysis of growth stocks.
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