Amid broad market gains, the Dow Jones Industrial Average climbed nearly 200 points, driven by Microsoft’s (MSFT) surge on Sam Altman’s return as ChatGPT CEO. Renowned fund manager, Cathie Wood, divested shares in a leading stock market player. Nvidia (NVDA) declined post-earnings, and Tesla (TSLA) fared even worse among the Magnificent Seven.
Meanwhile, both Palo Alto Networks (PANW) and Lam Research (LAM) attempted breakouts, showcasing dynamic activity. IPO stock, Arm (ARM), exhibited an impressive performance. Treasury yields saw a varied result, with the 10-year note sliding 1 basis point and the five-year yield climbing 2 points as the Nasdaq and small caps excelled.
In the Nasdaq, EBay (EBAY) and chip stock Advanced Micro Devices (AMD) made noteworthy gains, while Insulet (PODD) exhibited a strong showing despite Autodesk’s (ADSK) drastic plunge. Communication services and consumer staples stood out in the stock market, with energy being the only sector to close in negative territory.
In the Dow Jones, Microsoft (MSFT) led the pack, registering an impressive performance amidst Sam Altman’s return. The top-performing stocks included 3M (MMM) and Nike (NKE). On the flip side, Walgreen Boots Alliance (WBA) and Caterpillar (CAT) witnessed a decline.
Among the Magnificent Seven, Nvidia (NVDA) registered a decrease, despite a positive beating in earnings and sales. Tesla (TSLA) also took a hit in trading below its 50-day line as it forms a double-bottom base. Amazon.com (AMZN) and Meta Platforms (META) exhibited gains, as did Google parent Alphabet (GOOGL) and Apple (AAPL).
Remarkably, ARK Invest CEO Cathie Wood sold some shares of DraftKings (DKNG), capturing a profitable opportunity while exercising profit-taking skills. Amazon.com (AMZN), Meta Platforms gained alongside Chipmaker, Nvidia (NVDA), and Tileking (MSFT). Land Research’s (LAM) overshadowed earnings but maintained a strong position despite a slightly promising Q4 result. ARM, the IPO stock, is gaining ground, showing great potential for growth.
Furthermore, two stocks are testing entry points – Palo Alto Networks and Lam Research. While Palo Alto Networks is on the cusp of a flat-base entry point, Lam Research is hovering near its actionable price level. Additionally, IPO stock Arm is shaping a potentially promising pattern, making it one to watch closely. As market conditions continue to evolve, breakouts need to be closely monitored for growth.
Michael Larkin is on X, formerly known as Twitter, at @IBD_MLarkin for more analysis on growth stocks.
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