The Dow Jones Industrial Average moved close to a key level as Intel shined. Tesla soared above a buy point as CEO Elon Musk boasted of "long-term" value drivers, including AI. Meta Platforms and Uber Technologies also impressed.
Meanwhile a number of stocks attempted breakouts amid the positive action. Duolingo, Shell and Trane Technologies all tested entries.
Treasury yields rose. The 10-year yield climbed 3 basis points to 4.29%, while the two-year yield rose less than a basis point to 4.99%. The yield curve remains inverted.
Oanda senior market analyst Edward Moya said stocks were bolstered due to a dovish article on rate hikes over the weekend.
"The WSJ's Nick Timiraos, who's also known as the Fed whisperer, has markets convinced that officials view the risks as more balanced, so a September surprise is very unlikely," he said in a note to clients.
Nasdaq Clears Key Level As Small Caps Lag
The tech-heavy Nasdaq fared best out of the major indexes as it rose 1.1% and cleared its 50-day moving average, a key technical benchmark. Datadog was a standout performer here, rising 4.3%.
The benchmark S&P 500 also reclaimed its 50-day line as it rose 0.7%. J.M. Smucker lagged though, falling 7% on the news it is buying Twinkies maker Hostess Brands for $5.6 billion.
The S&P 500 sectors closed mainly higher. Consumer discretionary and communication services fared best in the stock market today. Energy and industrials were the only areas to close lower.
Small caps struggled to keep pace, with the Russell 2000 finishing up a mere 0.2%. Growth stocks fared a bit better though, with the Innovator IBD 50 ETF rising 0.8%.
Dow Jones Today: 3M Stock, Intel Shine
The Dow Jones Industrial Average closed off highs for the day, but still rose 87 points, or 0.3%. An attempt to move back above the key 50-day moving average came up short but it is well positioned for another try in the coming sessions.
Chip giant Intel was a top performer closing with a 1.5% lift. It is in the buy zone of a flat-base entry of 37.19. It also sits bullishly clear of its short-term moving averages.
But 3M ended up making the best gain on the index today as it rose 1.6%. Other components that had good sessions included Verizon Communications and Johnson & Johnson.
Chevron and Walgreens Boots Alliance were the worst performers on the Dow Jones today. CVX dipped 2% while WBA skidded 2.5%.
Tesla Stock Soars Past Entry; Elon Musk Makes AI Boast
Tesla stock took off like a rocket Monday and managed to close near highs for the day.
It was boosted after Morgan Stanley upgraded the stock from equal weight to overweight. It cited Tesla's custom supercomputer Dojo as a key catalyst.
Analyst Adam Jonas also hiked his price target to 400. Jonas believes Dojo, the supercomputer built to train the company's Full-Self Driving technology, could help raise the firm's valuation as much as $500 billion.
The firm's eccentric CEO Elon Musk could not resist chiming in on the prospects of his firm on his social media platform X, formerly Twitter.
"Almost all of Tesla's value long-term will be from AI & robots, both vehicle & humanoid," Musk said Monday.
Tesla stock soared past an aggressive trendline entry near 261. It has also formed a consolidation that offers a higher potential buy point of 299.29.
The stock, which closed up 10.1%, won itself a spot on the prestigious IBD Leaderboard list of top stocks due to the strength of its move.
Meta Pops As Uber Stock Clears Buy Point
A couple of other Leaderboard members had strong sessions Monday.
Meta Platforms closed at highs for the day as it rose 3.3%. The social media play, which looks to be forming a new base, has moved above the 50-day moving average.
META stock was boosted after the Wall Street Journal reported the firm is developing a powerful new AI system to rival OpenAI's ChatGPT. The latter system won acclaim and has been integrated into Microsoft browser Bing.
Meta is reportedly aiming to launch its new product by next year. New products are a key component looked for by the CAN SLIM cognoscenti.
Uber stock rose 3.6%, clearing a 47.70 early entry in the process. The stock also closed in on a flat base ideal buy point of 49.49.
Big Money has been a net buyer of the stock of late, with its Accumulation/Distribution Rating coming in at a strong B+. It also recently reached a milestone by turning in its first profitable quarter back in August.
Outside Dow Jones: 3 Stocks Test Buy Points
A trio of stocks took advantage of the action to attempt breakouts Monday.
Duolingo closed just below a buy zone after briefly clearing a double-bottom base entry point of 162.20.
Overall performance is strong here, with its IBD Composite Rating coming in at 93 out of 99.
Shell is also just below an entry after earlier clearing a flat base buy point of 63.69. This is a first stage pattern, which makes it more likely to net big gains.
The integrated energy stock boasts a near-perfect EPS Rating of 98. Low fund ownership is a flaw here.
Trane Technologies is in a buy zone after it cleared a weekly chart flat base entry of 209.17.
The relative strength line has been making progress of late. TT is in the top 12% of stocks in terms of price performance over the past 12 months.
Please follow Michael Larkin on X, formerly known as Twitter, at @IBD_MLarkin for more analysis of growth stocks.
