The Dow Jones Industrial Average moved higher as Apple (AAPL) became the first stock to hit a $3 trillion market cap. Tesla (TSLA) CEO Elon Musk took a victory lap as the stock surged on delivery data. Wells Fargo (WFC) led bank stocks higher after an upgrade.
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A number of stocks were also testing buy points amid the broad bullish action. Atlas Air (AAWW), Apple Hospitality (APLE) and Ulta Beauty (ULTA) all moved above entries.
Nasdaq Gains, Growth Stocks Lag
The Nasdaq was the leading major index, rising 1.2%. Outside of Tesla, Leaderboard member Advanced Micro Devices (AMD) was the top gainer, rising 4.4%.
The S&P 500 also squeezed out a gain, closing up 0.6%. Media play Discovery (DISCA) was a top performer here, rising 7.6%.
U.S. Stock Market Today Overview | ||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 36585.13 | +246.83 | +0.68 |
| S&P 500 | (0S&P5) | 4796.59 | +30.41 | +0.64 |
| Nasdaq | (0NDQC ) | 15832.80 | +187.83 | +1.20 |
| Russell 2000 | (IWM) | 225.35 | +2.90 | +1.30 |
| IBD 50 | (FFTY) | 45.54 | -0.30 | -0.65 |
Last Update: 4:10 PM ET 1/3/2022 | ||||
The S&P 500 sectors were mixed. Consumer discretionary and energy fared best. Health and materials suffered most.
Small caps ended up making the best gains for the day, with the Russell 2000 rising 1.2%.
Surprisingly, it was growth stocks that lagged Monday. The Innovator IBD 50 ETF (FFTY), a bellwether for growth stocks, fell 0.7%.
Dow Jones Rises As Apple Stock Hits Record
The Dow Jones Industrial Average closed at a new record after gaining 200 points. It posted a gain of 0.7%.
Apple stock closed up 2.5%. It gave up some gains after becoming the first stock to hit a $3 trillion market cap intraday.
Apple is now closing in on its 20% profit goal after breaking out from a cup-with-handle base. The ideal buy point here was 153.26, MarketSmith analysis shows.
Apple was the first $1 trillion company, in August 2018, and became the first company to be valued at $2 trillion two years later.
Boeing (BA) was another strong performer on the Dow Jones today, closing up 3.2%. Boeing stock was boosted by reports that Dubai carrier FlyDubai will take delivery of 20 737 Max jets this year.
Chevron (CVX) also gushed higher, rising 1.6% as oil prices popped. Benchmark West Texas intermediate crude oil futures were up just over 1% to around $76 per barrel. Chevron is in position to climb above 120 after getting support at the 10-week moving average.
Elon Musk Cheers, Tesla Stock Surges
Tesla CEO Elon Musk gushed on Twitter after Tesla stunned Wall Street with new delivery data.
“Great work by Tesla team worldwide,” Musk said. “Let’s make the roaring 20’s happen!”
Tesla stock roared in solid volume after the company said it delivered 308,600 vehicles in the fourth quarter. This was well above the FactSet consensus of 276,900.
Tesla stock raced past a trendline entry and above a weekly chart handle buy point of 1,119.10. Shares traded as high as 1,243.49 on Nov. 4. The stock is now about 4% off this level.
TSLA stock is a member of the prestigious IBD Leaderboard list of leading growth stocks. Exposure to the EV leader was increased last week ahead of its delivery report.
Wells Fargo Stock Jumps On This
Wells Fargo climbed after Barclays upgraded the stock to overweight. The stock closed up about 5%.
Barclays sees potential for Wells Fargo to outperform as interest rates rise and if regulators ease measures in the future. The firm sees Wells Fargo rising nearly 30%. It made a start Monday as it retook its 50-day moving average.
It is now eyeing a flat-base buy point of 52.66, according to MarketSmith analysis.
Other major bank stocks were also higher as bond yields rose. Dow Jones stock Goldman Sachs (GS) rose over 3%, JPMorgan Chase (JPM) was up more than 2%, and Bank of America (BAC) was up nearly 4%.
These Stocks Pass Buy Points
Cargo airline Atlas Air closed just under its buy zone after earlier passing a flat-base entry of 95.10.
This is a first-stage pattern, which is a positive. In addition, the stock offers a strong mix of market and earnings performance. Big money is also getting behind the stock.
Real estate investment trust Apple Hospitality closed just below its buy point after earlier rising above a cup-with-handle entry of 16.51 on a weekly chart. The relative strength line is not ideal in this case, as it has been moving sideways of late. But institutional investment has been rising.
Ulta Beauty also finished just under its entry after attempting to break out of a flat base. The ideal buy point here is 415.95. The stock is seeing its RS line inch higher, but the move came in below average volume.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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Source: https://www.investors.com/market-trend/stock-market-today/dow-jones-gains-elon-musk-takes-victory-lap-tesla-stock-charges-apple-stock-hits-3tn-mark/?src=A00220&yptr=yahoo