The Dow Jones Industrial Average edged higher as Apple (AAPL) popped. Lowe’s (LOW) and Hilton (HLT), both held by legendary investor Bill Ackman, are eying buy points. Tesla (TSLA) and Arm (ARM) tumbled amid bearish calls.
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Meanwhile, there were some other stocks eying entries or staging breakouts, including BWX Technologies (BWXT), Booking (BKNG) and Helmerich & Payne (HP).
Nasdaq Flat As Small Caps Lag
The tech-heavy Nasdaq may miss out on retaking its 50-day moving average after it traded virtually flat heading into the close. Sirius XM (SIRI) stood out as it rose almost 3%.
The benchmark S&P 500 could also fail in an attempt to reclaim its 50-day line after it saw gains fade to trade flat. Tyler Technologies (TYL) shined here as it gained more than 3%.
The S&P 500 sectors were mixed. Energy and financials fared best in the stock market today. Consumer discretionary and real estate were the worst-performing areas.
Small caps were getting nibbled by the bears, with the Russell 2000 down 0.4%. Growth stocks reversed, with the Innovator IBD 50 ETF (FFTY) down fractionally.
Dow Jones Today: Apple Stock Gains Buy Volume Fades
The Dow Jones Industrial Average was up less than 100 points, or 0.1%, heading into the close.
Apple stock was the top performer on the index. The stock rose more than 2%, though volume was fading as the session wore on.
AAPL was boosted amid reports of strong demand for its high-end iPhone 15 handsets.
The premium iPhone 15 Pro and Pro Max models are “tracking strong out of the gates,” according to Wedbush Securities analyst Daniel Ives.
Visa (V) and Travelers (TRV) also performed well on the Dow Jones today. American Express (AXP) lagged as it fell more than 2%.
Bill Ackman Stocks Eye Entries, Consider These Issues
A couple of stocks held by investing giant Bill Ackman are nearing buy points. Both are held by the hedge fund titan’s firm Pershing Square.
Lowe’s has formed a cup with handle base with an ideal buy point of 234.37. However the fact it has fallen under the 50-day moving average is a red flag.
The relative strength line is also starting to dip. Overall performance is decent, but not ideal. This is reflected in its IBD Composite Rating of 71 out of 99.
Hotel stock Hilton has formed a flat base with an ideal buy point of 157.14. The technical picture is better here, with the stock above its short-term and major moving averages.
At the moment its EPS Rating of 75 out of 99 is not ideal. Performance is improving though, with EPS popping by an average of 74% over the past three quarters.
IBD recommends buying stocks with strong earnings and price performance rather than laggards. Look for leaders in strong industries that are showing superior earnings growth and sales, such as those in the IBD 50.
Tesla Stock Walloped On Bearish Call
Tesla stock was a noteworthy laggard as it got punched lower following a bearish analyst call.
TSLA was hit after Goldman Sachs lowered its 2023 and 2024 profit outlook for the firm.
Goldman Sachs analyst Mark Delaney maintained a neutral rating on Tesla stock with a 275 price target, but believes the EV giant could make further vehicle price cuts in 2024 to keep volumes high.
Delaney also his expected fiscal year 2023 EPS view to $3.40, down from $3.50. For fiscal 2024 he expects EPS of $4.65, down from his previous $4.75 estimate.
Tesla stock fell more than 3%. This caused it to lose some ground on a 299.29 entry, but it remains clear of the 50-day line.
Strong Arm Stock IPO Gains Fade
Arm stock rocketed on its IPO debut Thursday but has been giving back gains ever since.
It was under further pressure Monday after Bernstein analyst Sara Russo initiated coverage with an underperform rating and 46 price target.
She said in a note to clients it is “”too soon to declare” the firm will be an AI winner. She also pointed to worries over the mobile and consumer markets where it has a strong presence.
Arm stock fell more than 4% but was well off its lows for the day. It remains above its IPO price but has surrendered a large portion of its opening day’s 24.7% gain.
Last week the Arm IPO priced 95.5 million shares at 51 apiece, at the top end of its expected range of 45 to 51.
There had been a great deal of skepticism heading into the debut of Arm stock.
U.K.-based Arm’s chip designs are used by the likes of Apple (AAPL), AMD (AMD) and Nvidia (NVDA).
Outside Dow Jones: These Stocks Are Near Buy Points
BWX Technologies is in a buy zone after topping a flat base entry of 76.26.
The power generation systems play has a very strong IBD Composite Rating of 89 out of 99. It is in the top 11% of stocks in terms of price performance over the past 12 months.
Travel stock Booking is in a flat base with a buy point of 3,251.71, according to MarketSmith analysis. The relative strength line has hit new highs.
Booking was added to the prestigious IBD Leaderboard list recently as it rebounded away from the 10-week moving average. It holds a near perfect Composite Rating of 98.
Helmerich & Payne has formed a flat base with an ideal buy point of 45.46. The consolidation formed after it base tested support at the 50-day moving average.
Please follow Michael Larkin on X, formerly known as Twitter, at @IBD_MLarkin for more analysis of growth stocks.
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