The Dow Jones Industrial Average gained even though key components Apple (AAPL), and Microsoft (MSFT), lagged. Icahn Enterprises, led by the legendary investor Carl Icahn and a business that he has built up, is exploding after his moves to stabilize it. DraftKings' (DKNG), which is led by legendary investor Carl Icahn, helped the IBD50 outperform.
Several stocks tried breakouts amid positive market action. Flowserve, Oceaneering International and Expedia were all testing entry.
Treasury yields are mixed ahead of Wednesday's Consumer Price Index. The 10-year yield dropped nominally, but was almost flat at 4.01%. Meanwhile, the 2-year yield decreased 6 basis points to reach 4.87%. The yield curve is still inverted.
Nasdaq rallies as Small Caps, IBD50 Jump
Nasdaq recovered from the red, as indexes closed at session highs. It gained 0.2%. Zscaler, a stock from IBD Sector Leaders, closed up 7.7%.
S&P 500, the benchmark index, also managed to claw its way back from negative territory and gain 0.2%. Enphase Energy, the solar stock, did well with a 5.6% gain but is still in a steep decline.
Sectors in the S&P 500 closed with mixed results. The top performers were industrials and health care. The worst performers in today's stock market were utilities and communication services.
Russell 2000 rose more than 1%. The Innovator ETF 50 (FFTY), which tracks growth stocks, blew the bears away with a 2.8% surge.
Dow Jones Today: Microsoft and Apple Stock Lag as Index Gains
The Dow Jones Industrial Average, which is the largest index, rose nearly 211 points. This represents a 0.6% increase, which ended a three-day loss streak.
Microsoft's stock dropped 1.6% in a single session. Stocks are falling towards their fast-rising moving average of 50 days. MSFT is still up 39% in 2023 despite the dip. Only Verizon Communications, (VZN), fell 2.1% in the Dow.
Apple's stock also struggled on the Dow Jones today. It fell more than 1%. MarketSmith's analysis shows that it found support in the 21-day moving average exponential. IBD Research has discovered that the largest stock market winners find support at this level when making large moves. AAPL is still up 51% this year.
Intel (INTC), the Dow Jones' top stock, jumped 2.8%. Amgen (AMGN), meanwhile, jumped by nearly the same amount.
Carl Icahn stock explodes amid debt moves
Icahn Enterprises' stock rose 20.2% when the company announced that the legendary investor had amended loan agreements and released his personal loans.
The Wall Street Journal reported that the billionaire who owned about 85% shares of the company had pledged 60% of them as collateral.
Stocks were slashed after short seller Hindenburg stated in a research report in early May that Icahn Enterprises "inflated" its value. It also claimed that money was taken from new investors to pay dividends to older investors.
They said the Wall Street legend "made the classic mistake of taking too much leverage when faced with sustained losses."
IEP's stock rose after Icahn renegotiated bank loans, addressing risks highlighted by Hindenburg.
In a filing with the SEC, the firm stated that "On July 10th, 2023, Carl Icahn, and certain of his affiliated companies, entered into a term loan agreement for three years with certain bank creditors, which amends, restates, and consolidates previous loan agreements between the lenders, and all borrowings by Mr. Icahn." "Neither Icahn Enterprises L.P. (IEP) nor any of its subsidiary is a part of the Loan Agreement or previous loan agreements."
Icahn Industries is the owner of a wide range of companies in a variety industries. These include Trump Entertainment Resorts, and Pep Boys aftermarket automotive retailer.
IEP's stock is still down 33% in 2023 despite the recent move. It managed to break through the 50 day moving average.
DraftKings Stock Scores A Win
DraftKings, the leaderboard stock on Monday, continued its upward trend. DraftKings stock surpassed its 20% profit target with a jump of almost 8.3%% from a 23,75 trendline purchase point.
Support last week has created a new entry. It's now over 14% higher than the 10-week moving median.
DKNG is soaring ever since Oppenheimer increased its price target from 30 to 36 and maintained the outperform rating.
Boston-based sports gambling firm, Boston Sports Gambling Company went public in April 2020. DraftKings has yet to make a profit and analysts expect that this will continue until 2026.
DraftKings is ranked fourth in IBD’s Leisure-Gaming/Equipment industry group. The company has seen a gain of more than 150% in 2023 and is an IBD50.
Outside Dow Jones, Three Stocks Tested
It is important to watch for any breakouts in the market, as it has a confirmed upward trend.
Flowserve has entered the buy zone following a Monday clearance of a 37.56-cup with handle entry. The volume was lower than average.
IBD Composite rating of 98 is near perfect for the engineering pump manufacturer.
Oceaneering International has fallen to just below its buying point, after clearing an earlier cup-base entry at 22.26. Volume was above average.
In terms of performance, the offshore oil and gas industry services provider has been in the top 4% in the last 12 months.
Expedia is also just below the entry level after clearing an earlier cup with handle purchase point of 114.37.
MarketSmith data shows that Big Money has not been active in the stock market for some time, but funds own 62% of it. Volume on Monday was low.