The Dow Jones Industrial Average touched a record high Monday even as other major indexes slipped. Icahn Enterprises (IEP), led by famed investor Carl Icahn, took a dive on a share offering. Also, Tesla (TSLA) fell after Chief Executive Elon Musk teased an artificial intelligence initiative while Nvidia (NVDA) skidded on the stock market today.
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The Dow was off highs for the day but remained up 0.3%. The blue-chip index backed off after hitting fresh heights. It also sits above its short-term moving averages and is nearly 4% above its 50-day line.
The Nasdaq composite lagged, though, falling 1%. Warner Bros. Discovery (WBD) fared well here as it rose about 4%. Arm (ARM) and Super Micro Computer (SMCI) were among the poorest performers in the Nasdaq. Super Micro fell more than 8% while Arm dropped more than 5%.
The S&P 500 was down 0.4%. Dayforce (DAY) impressed as it rallied nearly 4%. Broadcom (AVGO) was a laggard, though, dipping nearly 4%.
S&P 500 sectors were mixed. Energy and consumer staples made the best gains while consumer services and technology lagged.
Small caps gave up some early gains, but the Russell 2000 fought off the bears as it rallied 0.5%. Growth stocks were getting hit hard though, with the Innovator IBD 50 (FFTY) exchange traded fund falling more than 1%.
Stock Market Today: Carl Icahn Stock Dives On Share Offering
Icahn Enterprises stock was getting hammered on the stock market today amid a move to raise $400 million.
The firm posted a filing at the U.S. Securities and Exchange Commission saying it intends to sell depository units worth up to that value through an “at-the-market” offering program, Reuters reported.
Icahn Enterprises stock was getting hammered on the news, with stock down more than 13% in afternoon trade. It now sits more than 19% below its 200-day moving average, according to MarketSurge analysis.
In the filing, the company said it plans to use proceeds for the sale for acquisitions and for company purposes. Jefferies is to act as the sales agent for the share sale program.
The move comes after Icahn settled with the Securities and Exchange Commission last week after he failed to disclose billions of dollars worth of personal margin loans taken against the value of his company’s stock. He agreed to pay $2 million in fines following the probe.
Musk Touts AI Efforts
Tesla’s Musk is often a controversial figure. But he gave his army of social media followers a reason to smile after sharing a video from inside the firm’s headquarters earlier Monday.
Musk said on X that the footage of computer mainframes showed Cortex, which he touted as the “giant new AI training supercluster being built at Tesla HQ in Austin to solve real-world AI.”
Back in July, Wedbush analyst Dan Ives said Tesla is “the most undervalued AI play in the market” and that it is “more of an AI and robotics play than a traditional car company.”
Nevertheless, Tesla stock was a laggard on the stock market today. It fell nearly 4%, and has undercut the important 50-day moving average, MarketSurge analysis shows.
12:14 p.m. ET
Stock Market Today: IBD Sector Leader Tests Entry
With the market back in an uptrend, it is a good time to be buying stocks and raising market exposure.
One noteworthy name that attempted to make a bullish move on the stock market today is Shift4 (FOUR).
Shares of the payment processing company briefly cleared a cup-with-handle base entry of 83.64, though they have slipped back below this level.
Earnings have grown by an average of 32% over the past three quarters. Per-share earnings also accelerated in the most recent quarter.
Wall Street expects further improvement, with earnings per share seen swelling 33% this year before growing an additional 29% in 2025, according to MarketSurge data.
Shift4 is a member of the IBD Sector Leaders list, one of Investor’s Business Daily’s most rigorous and powerful screens. It is an institutional favorite, with 72% of shares currently being held by funds.
The stock was the IBD Stock of the Day pick for Monday.
Nvidia Stock Falls Despite Bullish Call
The stock market has a key hurdle to clear this week when Nvidia earnings drop. The firm posts results after the close Wednesday.
Ahead of the report, Morgan Stanley reiterated its overweight rating of the stock. It has a price target of 144. It said the firm remains a “top pick” and that “regardless of expectations issues,” it is still impressed by the firm’s strong momentum.
Despite the call, Nvidia stock fell more than 2% on the stock market today. However, it was off lows for the day and remains above its 50-day moving average.
Nvidia has been a key beneficiary of the artificial intelligence trend. It has seen earnings soar by an average of 500% over the past three quarters. The stock is in a new base that offers a 140.76 buy point, MarketSurge analysis shows.
The AI stock is a member of the IBD Leaderboard list of top stocks. Nvidia is up nearly 160% in 2024 and has jumped more than 18% in the past four weeks.
10:39 a.m. ET
Durable Goods Orders Pop
New data from the Commerce Department showed orders for durable goods surged by 9.9% month over month in July. This was well clear of economist expectations for a 4% lift and a reversal of the prior month’s revised downwardly 6.9% slump.
Orders for new cars and trucks were up 34.8% last month. This was a sharp rebound from June’s 20.6% fall.
When the volatile transportation sector was excluded, orders rose 0.2% last month compared to a 0.1% gain in June. Computers and electronics orders fell 0.7% while machinery orders held steady.
Meanwhile, shipments of core goods, which feeds into GDP, fell 0.4% in July.
Stock Market Today: Temu Parent PDD Hammered
It has been a tough year so far for China stocks, with the iShares MSCI China ETF (MCHI) up just over 4% so far in 2024.
And Temu-parent PDD (PDD), one of the communist country’s big success stories, was getting hammered on the stock today following disappointing results. Earnings beat views, but second-quarter revenue of 97.06 billion yuan missed Wall Street expectations even as the top line rose sharply year over year.
Management also said increasing competition and investment spending is likely to weigh on results. Co-Chief Executive Lei Chen said the firm is “prepared to accept short-term sacrifices and potential decline in profitability.”
PDD flashed multiple sell signals, dropping through the 50-day moving average and its 200-day line, amid a nearly 25% dip.
PDD Holdings is a China-based online retailer that operates the online marketplace Temu, which has been steadily gaining market share from Amazon.com (AMZN) in the U.S. since its launch in 2022.
The stock had also been a member of the IBD Sector Leaders list. However, it dropped off the list Friday amid a sharp dip. It looks unlikely to return any time soon.
SolarEdge Surges On CEO Exit
SolarEdge (SEDG) popped before the open on the stock market today on the announcement Zvi Lando has stepped down as its CEO. However, it reversed lower in opening trade, an initial jump giving way to a drop of around 5%. The stock holds an abysmal IBD Composite Rating of 2 out of 99.
The stock has been in free fall this year, and is now down more than 71% so far in 2024. Election uncertainty and higher interest rates have weighed on solar stocks.
Please follow Michael Larkin on X, formerly known as Twitter, at @IBD_MLarkin for more analysis of growth stocks.
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