The Dow Jones Industrial Average moved higher as component 3M (MMM) jumped on legal news. Nvidia (NVDA) reversed higher as chip stocks rallied. Cathie Wood loaded up on a stock that recently made a breakout gain of 124%.
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Now is a key time for investors to be bulking up their watchlists. Jabil (JBL), NOV (NOV) and Hubbell (HUBB) are three names rising near buy points after building bullish bases.
Nasdaq Up As Small Caps Shine
The tech-heavy Nasdaq was faring best out of the major indexes, rising 0.5%. Seagen (SGEN) stood out here with a lift of nearly 4% and an attempt at breaking out of a flat base above a 207.16 buy point.
The benchmark S&P 500 squeezed out a more modest gain of 0.4%. Boston Scientific (BSX) did well here with gain of more than 5%
The S&P 500 sectors were mostly in positive territory. Real estate and communication services were faring best in the stock market today. Consumer discretionary and health lagged.
Small caps were outperforming, with the Russell 2000 up nearly 1%. Growth stocks were also having a solid session, with the Innovator IBD 50 ETF (FFTY) also up almost 1%.
Dow Jones Today: MMM Shines, Boeing Stock Climbs
The Dow Jones Industrial Average was up more than 100 points, or 0.4%, heading into the close.
3M was shining brightest on the index. It popped more than 5% amid a Bloomberg report it has reached a tentative settlement over lawsuits related to the company’s combat ear plugs.
The firm has agreed to pay out more than $5.5 billion to resolve over 300,000 lawsuits claiming faulty equipment had left military personnel with hearing loss.
Goldman Sachs (GS) and Boeing (BA) were also shining on the Dow Jones today with gains of more than 1% each.
Johnson & Johnson (JNJ) and Merck (MRK) lagged with declines of nearly 2% and more than 1%, respectively.
Cathie Wood Buys This Stock After Monster Run
There are few fund managers more closely watched than technology investor Cathie Wood.
The ARK Invest CEO has made a bullish bet on a stock that recently soared as much as 124% following a recent breakout.
She bought more than 129,000 shares in Archer Aviation (ACHR) for her flagship ARK Innovation ETF (ARKK) on Friday.
Cathie Wood bought additional shares for the ARK Space Exploration & Innovation ETF (ARKX) and the ARK Autonomous Technology & Robotics ETF (ARKQ).
The bet looks to have paid off immediately, with the stock up more than 10% heading into the close.
Archer Aviation is developing the eVTOL aircraft, which aim to transport people as an air taxi service. The firm is unprofitable and no earnings are expected for the next few years.
It recently rallied more than 124% after breaking out from a consolidation with an ideal entry point of 3.34.
However, IBD recommends investors concentrate on stocks with a purchase price of more than 10. The sharp pullback in ACHR underline the risks of getting shaken out from such cheap issues.
Despite this, it is in the top 1% of stocks in terms of price performance over the past 12 months.
Nvidia Stock Reverses Higher As Chips Bite Back
Nvidia stock was in positive territory heading into the close. It rallied out the red earlier in the session to rise more than 1%.
NVDA is trading near a potential entry of 480.88. It is also trading above its short-term and major moving averages.
It has been a momentous year for Nvidia stock amid burgeoning enthusiasm over AI. NVDA is up more than 226% so far this year.
The stock is also a member of the prestigious IBD Leaderboard list of top stocks.
Other chip stocks were also moving higher. Micron Technology (MU) rose over 2%, while both Intel (INTC) and Taiwan Semiconductor (TSMC) rose less than 1%.
However, Advanced Micro Devices (AMD), a rival to Nvidia in the AI space, was essentially flat.
Outside Dow Jones: 3 Stocks Eye Entries
The market remains in a correction, though indexes are trying to rally. Here are some possible candidates for your watchlist.
Jabil has formed a flat base with an ideal buy point of 115.25, MarketSmith analysis shows. It also saw its relative strength line hit fresh heights as it approaches an entry, earning it a blue dot on its MarketSmith chart.
Overall performance is very strong, with the stock boasting a mighty EPS Rating of 95 out of 99.
The contract manufacturer popped Monday on news it will reduce exposure to major customer Apple (AAPL) and operations in China by selling its mobility unit.
Oil & gas industry equipment stock NOV moved closer to a cup-with-handle entry of 20.98. The relative strength line has been looking strong of late.
All-around performance is solid here, with its IBD Composite Rating coming in at 96.
Hubbell is building the right side of a flat base. The ideal buy point here is 340.06. This is a second stage pattern, which means it is retains a high probability to net big gains.
Institutional investors have been net buyers of late, with its Accumulation/Distribution a solid B-.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more analysis of growth stocks.
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