The Dow Jones Industrial Average rose nearly 200 points amid broad market gains. Microsoft (MSFT) led as it popped on Sam Altman’s return as ChatGPT CEO. Famed fund manager Cathie Wood sold some shares in a stock market leader. Nvidia (NVDA) fell after earnings but Tesla (TSLA) fared even worse among the Magnificent Seven.
Treasury yields ended mixed. The 10-year Treasury note slid 1 basis point to 4.41% while the 30-year was flat at 4.55%. The five-year yield rose 2 basis points to 4.44% while the two-year gained 1 basis point to finish at 4.9%.
Nasdaq Up As Small Caps Excel
Most S&P 500 sectors ended positive. Communication services and consumer staples fared best in the stock market today. Energy, which was hit due to a delayed OPEC+ meeting, was the only area to close in negative territory.
Small caps gave the bears the bloodiest nose, with the Russell 2000 popping 0.7% despite closing off highs for the day. Growth stocks inched higher, though the Innovator IBD 50 ETF (FFTY) finished essentially flat.
Dow Jones Today: Microsoft Up Amid Altman Move
The Dow Jones industrials finished the day up 185 points, or 0.5%.
The stock was bolstered as the OpenAI saga finally looks to be coming to a close. In a dramatic development, ousted co-founder Altman is set to return as CEO. He will serve under a new board of directors that will include former U.S. Treasury secretary Larry Summers. Microsoft CEO Satya Nadella said he was “encouraged by the changes.”
Magnificent Seven: Nvidia Stock Drops After Earnings
Microsoft stock was not the only mover among the so-called Magnificent Seven, however.
Nvidia (NVDA) ended in the bottom half of its range despite clambering off session lows as it fell 2.5%. It fell in heavy volume despite a strong earnings and sales beat.
It was in fact Tesla that performed worst out of the Magnificent Seven today as it fell 2.9%. It is trading below its 50-day line as it forms a double-bottom base with an entry point of 278.95, MarketSmith analysis shows.
Cathie Wood Sells This Leader
Profit taking is a key skill for any top investor. And this may have been why ARK Invest CEO Wood decided to sell some shares in Leaderboard stock DraftKings (DKNG).
The sports betting play has been on a remarkable run in 2023, rising about 250% since the start of the year.
Outside Dow Jones: Two Stocks Test Entries
With the current market conditions it is always a good idea to keep a close eye on breakouts.
Palo Alto Networks closed just below its buy point after testing a flat-base entry of 265.90. This is a second-stage pattern. The cybersecurity stock is recovering well following a post-earnings sell-off. It has a near-perfect IBD Composite Rating of 98.
Lam Research is also just under its actionable price level at 726.52. The chip equipment stock has lackluster earnings but is in the top 6% of stocks in terms of price performance over the past 12 months.
Meanwhile, IPO stock Arm is also worth keeping tabs on as it constructs a potentially lucrative pattern. The semiconductor stock is forming a cup base with an ideal entry point of 69, winning a spot on the Leaderboard Watchlist in the process.
Please follow Michael Larkin on X, formerly known as Twitter, at @IBD_MLarkin for more analysis of growth stocks.
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