Sat. May 25th, 2024

The Dow Jones Industrial Average added nearly 250 points, or 0.8%, in the first hour of trading Monday. Chair Jerome Powell and the rest of the Fed are widely expected to keep rates unchanged during the two-day meeting ending Wednesday.


Major indexes trimmed opening gains, although the Dow held near the morning’s highs. The S&P 500 was up 0.6% in the stock market today.

The Nasdaq added 0.6% at the hour as well. All of the Magnificent Seven stocks rose in a sputtering rally attempt since the tech index undercut its follow-through day lows on Oct. 20 and sent the market into correction. The Nasdaq is meeting some resistance at the 200-day line on Monday.

Volume on the NYSE and on the Nasdaq was lower compared with the same time on Friday.

The small-cap Russell 2000 fared well with a 0.8% gain, while the Innovator IBD 50 ETF (FFTY) rose 0.5%.

Crude oil fell 2% to $83.76 a barrel.

The yield on the benchmark 10-year Treasury note rose 4 basis points to 4.89%. Yields remains near multiyear highs but have eased off after topping 5% and sending stocks reeling earlier this month.

General Motors (GM) reached a tentative labor deal with the United Auto Workers union Monday, The Wall Street Journal reported. GM is the last of the automakers to reach a pact with the union.

Over the weekend, UAW strikers approved a labor deal with Ford (F) after the automaker agreed to an $8.1 billion investment in new plants, and pay raises of at least 30% for full-time workers. GM shares were slightly lower, while Ford fell 1.7%.

On Friday, October’s payroll growth is seen coming in at 183,000, falling sharply from September’s 336,000 job gains, according to Econoday.

Dow Jones Stocks

McDonald’s (MCD) reported a strong third quarter. Global sales rose 11% while comparable sales were also up 9% due to price increases. Earning rose 19% to $3.19 per share. The stock climbed 1.5% in mid-morning trades.

Shares of Disney (DIS) rose on news that Nelson Peltz’s Trian Fund Management has more voting power and control of the board after acquiring the shares of Marvell executive Ike Perlmutter. Disney stock is reversing a four-day losing streak. Earnings are due next week.

In earnings, Apple (AAPL) will report late Thursday while Caterpillar (CAT) reports Tuesday. Amgen (AMGN) also reports Tuesday. AAPL is testing the 200-day line, while CAT stock is trying to end a three-day losing streak. AMGN is below a buy point of 268.24 and holding the 50-day line.

Stocks Moving Today

Outside of the Dow Jones, On Semiconductor (ON) dived over 15% and is below its 200-day line after Q3 sales were nearly flat with the same quarter last year, at $2.2 billion. Earnings per share declined to $1.39 from $1.45 a year ago. Its fourth-quarter outlook also suggests flat sales growth.

Lattice Semiconductor (LSCC) reports after the market close along with chip companies Rambus (RMBS) and Wolfspeed (WOLF). All three are below their key moving averages.

Advanced Micro Devices (AMD) is also below converging 50- and 200-day moving averages ahead of earnings on Tuesday. Shares of Qualcomm (QCOM) are approaching the 50-day line ahead of earnings, which are due Wednesday.

Also outside the Dow Jones industrials, Western Digital (WDC) saw cloud revenue decrease while overall sales fell 26% to $2.75 billion from the prior year’s same quarter. The maker of data storage products also suffered a loss of $1.76 per share. But the company announced plans to separate its flash memory and hard-disk drive businesses, creating two independent public businesses. Shares reversed higher, clearing the 200-day line and are now trying to retake the 50-day line.

IBD 50 stock Novo Nordisk (NVO) is rebounding off the 50-day line and has an alternative entry at 100.88. Third quarter results are due on Thursday. Also in the IBD 50, Eli Lilly (LLY) is at the 50-day line ahead of earnings this week. Cardinal Health (CAH) is forming a cup with handle with a buy point of 94.37.

Please follow VRamakrishnan on X/Twitter for more news on the stock market today.


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