Dow Jones Up As Nvidia Rallies On These Calls; China EV Stock, Tesla Stumble

The Dow Jones Industrial reversed higher in the stock market today as Microsoft (MSFT) gained ahead of its AI event. Nvidia (NVDA) popped following some bullish analyst calls ahead of earnings. China EV stock Li Auto (LI) skidded on results while Tesla (TSLA) also fell.

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There was a trio of stocks attempting breakouts. Abercrombie & Fitch (ANF), Archrock (AROC) and Valaris (VAL) all tested buy points.

Stocks were off to a higher start as they look to keep their rally going. The Dow Jones Industrial Average was nominally higher but essentially flat.

The Nasdaq composite rose 0.6%. Micron Technology (MU) was a top performer in the composite, rallying more than 2% after Morgan Stanley upgraded the stock from underweight to equal weight. It is trading just below a cup-base entry of 130.54, MarketSurge data shows.

Meanwhile, the S&P 500 added 0.3%. Norwegian Cruise Line (NCLH) sailed almost 7% higher while Royal Caribbean Cruises (RCL) also stood out with a near-5% gain.

Stock Market Today: These Sectors Impress

The S&P 500 sectors were mostly lower. Only the technology, industrials and communications services sectors were keeping the index in the black. Consumer staples and health care were the areas lagging most.

Small-cap stocks made modest progress, with the Russell 2000 up 0.2%. Growth stocks fared better, with the Innovator IBD 50 (FFTY) exchange traded fund up 0.6% on the stock market today.

Microsoft stock was up 1% on the Dow Jones Industrial Average. The AI leader is expected to announce new initiatives in the space at its Build 2024 event, which kicks off on Tuesday. The Dow Jones software giant will be looking to maintain its momentum in the space following Google’s I/O developer conference.

Intel (INTC) and Boeing (BA) were also top performers as they gained more than 1% each.

Home Depot (HD) was down the most on the Dow Jones index today, off just over 1%. Cisco Systems (CSCO) suffered a similar decline.

China EV Firm Li Auto Slides, Tesla Stock Dips

Li Auto was getting spanked after missing earnings views. It was also punished for issuing disappointing guidance. The stock plunged nearly 14% on the stock market today. It lost ground on the 50-day moving average. It’s at the lowest since March 15, 2023.

The firm earned 17 cents per U.S. ADR, down 10.5% vs. 19 cents a year earlier. Wall Street had expected 24 cents. Revenue was in line with views.

Li Auto expects Q2 deliveries of 105,000-110,000 vehicles, below analyst estimates. Revenue should be $4.1 billion-$4.3 billion, up 4%-9% vs. a year earlier. But analysts expected $5.17 billion.

U.S. rival Tesla fell almost 2%. The Magnificent Seven stock has fallen nearly 30% so far this year.

Nvidia Stock Pops Amid These Calls

Nvidia stock was moving higher on the stock market today, rising nearly 3%.

It was boosted amid a flurry of price-target hikes. Baird upped its target from 1,050 to 1,200, while Susquehanna raised its to 1,100 from 1,050. Further, Barclays adjusted its price target from 850 to 1,100.

Nvidia is in a buy zone after clearing a 922.20 cup-with-handle entry. The buy zone runs up to 968.31

This is a crunch week for the artificial intelligence stock: Earnings are due Wednesday.

Nvidia is a member of the prestigious IBD Leaderboard list of top stocks.

Outside Dow Jones: Abercrombie & Fitch Tests Buy Point

Abercrombie & Fitch has cleared a cup-without-handle base with an entry at 140.28. This is still an early-stage pattern, which IBD research has found is more likely to net big returns for investors.

The stock has an IBD Composite Rating of 97 out of 99. This puts it in the top 3% of issues tracked by IBD. The stock is extending its turnaround, with EPS growing by 267% in the most recent quarter.

Archrock has moved above a cup-with-handle entry of 20.66. This is a first-stage pattern, a bonus. The energy infrastructure play focuses on midstream natural gas compression.

Archrock is among the top 5% of issues in terms of price performance over the past 12 months. It also boasts perfect IBD Composite and EPS Ratings.

Texas offshore drilling contractor Valaris is testing a saucer-with-handle buy point of 77.09. The relative strength line is spiking.

This is not as strong a performer as Archrock, with its IBD Composite Rating coming in at 91 out of 99. Still, its earnings grew by an eye-popping 775% in the most recent quarter, according to IBD MarketSurge.

Please follow Michael Larkin on X, formerly known as Twitter, at @IBD_MLarkin for more analysis of growth stocks.

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