The Dow Jones Industrial Average rallied as Apple (AAPL) popped. Tesla (TSLA) stock jumped after CEO Elon Musk issued an order to staff. Twitter (TWTR) stock reversed lower on the news Jack Dorsey is stepping down from his role as chief executive.
Breakouts were hard to come by, despite the positive action. Chip stock Lam Research (LRCX), real estate investment trust W.P. Carey (WPC) and plastics play Berry Global (BERY) all tested buy points.
XThe stock market seemed to be moving back into rally mode following Friday's pullback amid the emergence of the Omicron variant of Covid-19. National Securities chief market strategist Art Hogan said the market moves were exacerbated by the low participation typical of post-Thanksgiving Fridays.
"While market participants continue to have more questions than answers for the moment, the general tone coming into the new week certainly feels a lot less panicky, and much more of a wait-and-see mode," he said in a note to clients.
Nasdaq Leads As Small Caps Reverse Lower
The tech-heavy Nasdaq recovered the bulk of Friday's losses as it jumped about 1.9%. Covid vaccine play Moderna (MRNA) was the top performer, closing with a gain of 11.8%.
The broader S&P 500 also rallied well, rising 1.3%. Leaderboard stock Nvidia (NVDA) was among the top stocks here, finishing with a gain of 5.9%.
The S&P sectors were all making progress, technology and real estate making the best gains. Financials and industrials were the making the smallest gains.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 35135.78 | +236.44 | +0.68 |
| S&P 500 | (0S&P5) | 4654.86 | +60.24 | +1.31 |
| Nasdaq | (0NDQC ) | 15782.83 | +291.17 | +1.88 |
| Russell 2000 | (IWM) | 222.67 | -0.18 | -0.08 |
| IBD 50 | (FFTY) | 48.48 | +0.78 | +1.64 |
Last Update: 4:04 PM ET 11/29/2021 |
||||
Small caps struggled, and turned negative late. The Russell 2000 closed down 0.1%.
Growth stocks in contrast were shining. The Innovator IBD 50 ETF (FFTY), a bellwether for growth stocks, gained 1.6%.
Dow Jones Rallies As Apple Stock Pops
The Dow Jones Industrial Average performed worst out of the major indexes, rising 0.7%.
Apple stock was one of the top performers, rising about 2.2%. The iPhone maker is trading around the top of its buy zone from a cup-with-handle entry, according to MarketSmith analysis.
However it was Salesforce.com (CRM) that led the Dow Jones today. It finished the session with a gain of 4.4%.
Merck (MRK) was the clear laggard, though it closed off session lows. It fell 5.4%.
Tesla Stock Surges As Elon Musk Gives This Order
Tesla stock was rallying after it emerged CEO Elon Musk had ordered workers to concentrate on quality over quantity.
"Per my email several weeks ago, our focus this quarter should be on minimizing costs of deliveries, rather than spending heavily on expedite fees, overtime and temporary contractors just so that cars arrive in Q4, a leaked email reportedly said.
The focus on margin was welcomed by investors, with the stock surging more than 5%. The EV giant previously triggered the eight-week hold rule from a 900.50 buy point.
Retail investing favorite Tesla also now in the fourth week of a consolidation on its weekly chart. While the exact nature of its current base isn't yet evident, the left side high would mean a potential entry point of 1,243.59.
Tesla stock has been recovering after taking a tumble after Musk began selling 10% of his stake in the company.
It also emerged Monday that the firm's Gigafactory Berlin is slated to become operational in December, but production ramp up is expected to be slow.
After several delays due to regulatory red tape and environmentalist objections, production at the new facility located near Berlin in Brandenburg, might start within days, according to Electrek, which cited German media reports.
Twitter Stock Reverses Lower
Twitter stock surged before falling lower after it emerged that CEO Dorsey is leaving his role. It closed with a loss of 2.7%.
The social media company announced that Chief Technology Officer Parag Agrawal will succeed Dorsey immediately as CEO.
"I've decided to leave Twitter because I believe the company is ready to move on from its founders," Dorsey said in a statement. "My trust in Parag as Twitter's CEO is deep. His work over the past 10 years has been transformational. I'm deeply grateful for his skill, heart, and soul. It's his time to lead."
There are a number of negative technical indicators currently haunting Twitter stock.
It is currently trading well below both its 50-day and 200-day moving averages. Its relative strength line is also sliding.
It is one of the bottom 14% of stocks tracked in terms of market performance over the past 12 months.
This Stock Leads Plays Testing Buy Points
Semiconductor equipment maker Lam Research is in a buy zone after passing a consolidation pattern entry of 673.90, according to MarketSmith analysis.
The stock is currently sits well clear of its 50-day moving average, a bullish sign. This comes amid broad strength in chip stocks.
The relative strength line has been spiking of late. LRCX stock has made muscular gains overall so far in 2021, gaining over 43%. It ended the day with a gain of 6%.
Lam Research stock has a very strong Composite Rating of 96. While stock market performance is good, earnings are just as solid. Its EPS Rating of 94 puts it in the top 6% of stock tracked.
W.P. Carey closed the day just below a cup-with-handle entry of 79.64. However the real estate investment trust currently boasts lackluster earnings and market performance.
Plastics play Berry Global is sitting in a buy zone after breaking past a consolidation pattern entry of 71.
This stock boasts a solid IBD Composite Rating of 82. It currently holds a stout Accumulation/Distribution Rating of B+, which represents moderate-to-heavy buying among institutions over the past 13 weeks.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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