The Dow Jones Industrial Average ticked higher Monday as Treasury Secretary Scott Bessent tried to reassure investors about the Trump administration's tariff plans. But a new Trump levy move took a bite out of streaming players like Netflix, and other major indexes fell. Meanwhile, Berkshire Hathaway tested a key benchmark on the stock market today after Warren Buffett said he is stepping down as chief executive.
Among the major indexes, the Dow Jones industrials fared best, rising roughly 100 points, or 0.3%. IBM and UnitedHealth led blue chips with gains of around 2%. Apple lagged most, dropping more than 2%. Chevron skidded nearly 2%.
The Nasdaq composite fell 0.3%. Trade Desk outperformed here, rallying nearly 4%, while Charter Communications and PayPal each rose around 3%. On Semiconductor and Grail lagged, diving nearly 8% and more than 4%, respectively.
Stock Market Today: Industrials, Real Estate Fare Best
The S&P 500 dropped 0.2%. The benchmark index's sectors were mixed, but with a downside bias. Consumer discretionary and technology were getting hit the hardest. Industrials and communication services made the best gains.
Delta Air Lines and EQT were standout performers here due to lifts of around 3% each. Tyson Foods lagged, plunging nearly 8% despite an earnings beat as sales came in below expectations. Zimmer Biomet fared even worse, falling more than 10%.
Palantir Technologies, which is reporting earnings after the close Monday, was essentially flat. The Leaderboard Watchlist stock is near a cup-base entry of 125.41.
Small caps also fell, with the Russell 2000 index off by 0.3%. The index is holding above its 50-day moving average but lags its 200-day line.
But the Innovator IBD 50 exchange traded fund reversed and was up 0.6% in recent action.
Treasury Secretary Says This To Investors
President Donald Trump has been trying to reassure investors after the so-called Liberation Day tariff announcement sent markets into a spin. Treasury Secretary Bessent attempted to win over movers and shakers during a speech at the Milken Institute Global Conference in Los Angeles Monday.
Bessent promised that the "administration's goal is to make it even more appealing for investors like you" to invest in America. He said the administration has "uprooted government waste and harmful regulations" and that it has "fertilized the ground with fresh tax legislation."
Bessent also offered some words of hope during an interview on CNBC, saying that there could be "substantial progress in the coming weeks" on China. He also said some trade deals could be unveiled "as early as this week."
Progress would be welcome news to investors as there currently is a 90-day pause on many of the highly punitive tariff rates unveiled by Trump. It kicked off in April and is set to expire on July 9.
Dow Jones Today: JPMorgan Tests Entry
Despite the mixed action there was plenty of action on the breakout front. Dow Jones banking stock JPMorgan Chase briefly cleared a double-bottom base entry of 254.67, according to MarketSurge analysis from Investor's Business Daily.
This is a first-stage pattern for the recent IBD Stock Of The Day. This is a plus, as such patterns have a better chance of success, IBD research has found.
With assets of $3.9 trillion, JPMorgan is the nation's largest bank. JPMorgan stock also has the largest market capitalization of any bank, at $707 billion.
While an economic downturn threatens JPMorgan stock and others, some trends now favor banks. For example, a steepening yield curve could boost banks' profit margins.
It is a strong all-around performer, with its IBD Composite Rating sitting at 94. JPMorgan stock holds an Earnings Per Share Rating of 90 out of 99, but earnings are seen growing just 2% this year before accelerating to 6% growth in 2026. This is below the 25% growth sought by those following IBD investing principles.
12:27 p.m. ET
ISM: Services Sector Flexes Muscles
In economic news, the Institute for Supply Management's service-sector Purchasing Managers Index increased to 51.6% in April versus the prior month's reading of 50.8%.
This was comfortably clear of economist expectations for a 50.2% reading, according to Econoday. In total, 11 services industries grew in April, while six contracted.
A key part of the U.S. economy is the service sector. It accounts for roughly two-thirds of America's economy and includes areas such as health care and finance.
Regarding tariffs, respondents cited actual pricing impacts as concerns, more so than uncertainty and future pressures. "Respondents continue to mention federal agency budget cuts as a drag on business, but overall, results are improving," said Steve Miller, the ISM's business survey committee chairman, in a news release.
Meanwhile, the S&P Global U.S. Services PMI index fell to 50.8 in April from March's reading of 54.4. This was the lowest reading since November 2023. This was lower than expectations for 51.4.
Stock Market Today: These Issues Test Entries
A number of issues were attempting breakouts despite the negative action. Remember, IBD is currently recommending 40%-60% stock market exposure.
Monster Beverage cleared a weekly flat-base entry of 60.34, according to MarketSurge analysis. Overall strong performance has netted it an IBD Composite Rating of 93. Earnings are set to be released late Thursday.
An approach highlighted by Investor's Business Daily is to use options as a strategy to reduce risk around earnings. It's a way to capitalize on the upside potential of a stock's move around earnings, while reducing the downside risk.
Elsewhere, upscale fitness chain stock Life Time Group is clearing a double-bottom base buy point of 32.85. The recent initial public offering is among the top 3% of issues in terms of price performance over the past 12 months. Earnings are seen rising 30% this year and 22% next year, MarketSurge data shows.
Life Time has grown to 180 fitness centers. It also boasts 680 pickleball courts, and is now a leading provider of facilities for that increasingly popular sport.
Earnings are due before the open Thursday, which again adds risk. Investors could consider adding it to their watchlist for now.
11:04 a.m. ET
Stock Market Today: Trump Tariff Move Hits Netflix
Streaming stocks were under pressure early Monday after President Donald Trump wrote on Truth Social that he would impose a 100% tariff on movies made outside the U.S.
In the message, Trump claimed he was making the move because the film industry in the U.S. is suffering a "very fast death."
"Other countries are offering all sorts of incentives to draw our filmmakers and studios away from the United States," he wrote. "Hollywood, and many other areas within the U.S.A., are being devastated. This is a concerted effort by other nations and, therefore, a national security threat. It is, in addition to everything else, messaging and propaganda!"
Netflix stock fell nearly 2% on the stock market today. It is getting support at the 10-day moving average, MarketSurge analysis shows. It is also holding above its buy range from a 998.70 entry.
Netflix stock is a member of the IBD Leaderboard list of top growth stocks. This underlines its quality.
Dow Jones Component Disney Still Has Bearish Look
Dow Jones stock Disney came off lows, and was down just a fraction in recent trades. The media giant has a double-bottom base with an ideal buy point of 118.63.
However it remains way below its 50-day and 200-day moving averages, a bearish look. It also has a mediocre IBD Composite Rating of 74 out of a best-possible 99.
Warner Bros Discovery fell more than 2%, Paramount Global lost about 1%, but Comcast added a fraction.
Separately, Trump told NBC on Sunday that, "At some point, I'm going to lower [China tariffs] because otherwise you could never do business with them."
Outside Dow Jones: Berkshire Tests Benchmark As Warren Buffett Quits
One of the biggest losers on the stock market today was conglomerate Berkshire Hathaway. It fell nearly 5%, testing the 50-day moving average in the process.
It was falling after CEO Warren Buffett announced he would be stepping down from the role. He will be replaced at the end of the year by Greg Abel, vice chairman of noninsurance operations.
"I think the time has arrived where Greg should become the chief executive officer of the company at year end," Buffett said. However, the Oracle of Omaha, considered by many one of the greatest investors in history, will remain chairman.
Speaking at his 60th annual meeting, Buffett said he would "still hang around and could conceivably be useful in a few cases."
Berkshire's 'Fortress' Balance Sheet
CFRA analyst Cathy Seifert, who rates Berkshire stock a hold with a 535 target, believes the new leader's focus will be on maintaining Berkshire's "fortress" balance sheet.
"Our sense is that 2025 is likely to be a transitional year for Berkshire and we expect Greg Abel's management style may be more hands on than Buffett's," she said in a research note. "Abel, a CPA (Certified Public Accountant), brings strong operational skills to this role as the former CEO of MidAmerican Energy and subsequently, Berkshire Hathaway Energy."
Meanwhile, Berkshire Hathaway's first-quarter earnings were worse than expected. Berkshire earnings declined 14% to $9.64 billion on an operating basis, or $4.47 per class B share. Revenue edged down to $89.73 billion.
Wall Street expected Berkshire earnings to fall 9% to $4.72 a share on an operating basis. Revenue was seen rising about 1% to $90.83 billion.
Please follow Michael Larkin on X at @IBD_MLarkin for more analysis of growth stocks.
