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The Dow Jones Industrial Average inched higher Monday as stocks in general gained ground. Meanwhile, Adobe (ADBE) popped as an acquisition deal crumbled. Famed investor Cathie Wood snapped up some Pinterest (PINS) but sold Bitcoin plays. And Meta Platforms (META) and Amazon.com (AMZN) led the Magnificent Seven.
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There were a number of breakouts despite the muted action. Netflix (NFLX), Urban Outfitters (URBN) and Commvault Systems (CVLT) all tested entries.
The Nasdaq was faring best out of the major indexes as it rose 0.8%. Costco Wholesale (COST) piled on more gains Monday, rising more than 3% on top of Friday’s 4.5% jump.
The benchmark S&P 500 was also up, though by a less impressive 0.6%. Etsy (ETSY) proved a top performer here as it rose around 5%.
The S&P 500 sectors were mostly positive. Communication services and consumer staples fared best in the stock market today. Real estate and utilities lagged.
Small caps were lagging following recent outperformance, with the Russell 2000 down fractionally. Growth stocks outperformed, with the Innovator IBD 50 ETF (FFTY) up around 1%.
Dow Jones Today: PG Stock And Walmart Stock Shine
The Dow Jones lagged the other major indexes. It was up about 40 points, or 0.1%.
Procter & Gamble (PG) was the top performer here as it rose nearly 2%. It remains below its 50-day and 200-day moving averages, MarketSmith analysis shows.
Walmart (WMT) followed closely behind as it turned in a lift of more than 1%.
In contrast, Walgreens Boots Alliance (WBA) and Boeing (BA) dropped around 1% each.
Cathie Wood Buys PINS Stock, Sells Bitcoin Plays
Sometimes big-name investors will go where the average trader fears to tread. That was the case with Ark Invest Chief Executive Cathie Wood, who snapped up plenty of Pinterest stock on Friday.
The firm bought nearly 454,000 shares for the ARK Innovation (ARKK) exchange traded fund as well as additional shares for the ARK Next Generation Internet (ARKW) ETF and the Ark Fintech Innovation (ARKF) ETF.
By contrast, the firm sold shares of Coinbase Global (COIN) and the Grayscale Bitcoin Trust (GBTC) across the three Wood funds. ARKK alone jettisoned more than 12,000 shares of Coinbase stock.
Pinterest stock has been on a powerful run thus far this year, rising about 65%. But PINS is also extended, currently sitting about 22% above its 50-day moving average.
Investor’s Business Daily recommends buying stocks with strong earnings and price performance but does not recommend buying extended stocks. Look for leaders in strong industries that are showing superior earnings growth and sales.
Adobe Stock Gains After It Cancels Figma Buy
Adobe stock rallied somewhat after it announced earlier on Monday it had canceled its $20 billion acquisition of Figma. The latter firm makes a collaborative design tool.
The companies saw “no clear path” to receiving the necessary regulatory approvals from the European Commission and the U.K. Competition and Markets Authority, Adobe said in a news release.
“Adobe and Figma strongly disagree with the recent regulatory findings, but we believe it is in our respective best interests to move forward independently,” Adobe Chief Executive Shantanu Narayen said in the press release.
But while Adobe has been hit with a $1 billion termination fee it seems investors welcomed the move. ADBE stock was up nearly 3% heading into the close. It is also bouncing off its key 50-day moving average.
Adobe stock is a member of the IBD Tech Leaders list and has an IBD Composite Rating of 91 out of 99.
Magnificent Seven: Meta, Google Stock Shine
The so-called Magnificent Seven stocks were having a mostly positive start to the week Monday, though the two members of that club that also are on the Dow Jones index were mixed.
Dow component Microsoft (MSFT) was up fractionally. But fellow Dow player Apple (AAPL) lagged as it fell nearly 1%. It continues to trade in the buy zone above a 192.93 entry.
Meta Platforms (META) was the best performer, rising about 3.5%. Exposure to the stock was raised on Leaderboard earlier Monday.
E-commerce giant Amazon.com (AMZN) also impressed with a gain of around 3%. It now is extended past a 145.86 buy point.
Nvidia (NVDA) rose nearly 3%. The Leaderboard stock is extended past a 476.09 entry. Google-parent Alphabet (GOOGL) rose by a similar amount.
Meanwhile Tesla (TSLA) dipped slightly. TSLA remains below a 278.98 buy point.
Outside Dow Jones: Three Stocks Test Entries
While action was not overwhelmingly positive, a few stocks still attempted breakouts.
Streaming stock Netflix is near a buy zone after briefly clearing a consolidation entry of 485, MarketSmith analysis shows. Overall performance is very good here, with its IBD Composite Rating a robust 91 out of 99. The relative strength line is just off highs.
Urban Outfitters tested a cup-with-handle entry of 37.81 on its weekly chart. It is also actionable above a 36.10 entry on its weekly chart. The apparel retailer is in the top 15% of stocks in terms of price performance over the past 12 months. It also boasts a perfect EPS Rating.
Also outside the Dow Jones index, Commvault Systems staged a weekly chart breakout as it cleared a cup base entry of 78.80. Earnings and price performance are stout for the database software stock, with per-share earnings rising by 23% in the most recent quarter.
Please follow Michael Larkin on X, formerly known as Twitter, at @IBD_MLarkin for more analysis of growth stocks.
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