Dow Jones rallies; Twitter Stock Rockets as Elon Musk bites that bullet; These new Cathie Wood purchases are skyrocketing
The Dow Jones Industrial Average continued to rally strongly on Tuesday afternoon. Twitter (TWTR) exploded amid reports You’re here (TSLA) CEO Elon Musk is about to bite the buyout bullet. Some of Cathie Wood’s new purchases were skyrocketing. Apple (AAPL) jumped but Selling power (CRM) was the best blue chip.
There was plenty of bullish action, with a trio of notable stocks testing the entries. HF Sinclair (DINO) and Neurocrine Biosciences (NBIX) staged blowouts as DoubleVerify (DV) made a bullish move.
Volume rose on both the Nasdaq and the New York Stock Exchange from the same time on Monday, a bullish sign.
The yield on the benchmark 10-year Treasury note slipped three basis points to 3.63%. West Texas Intermediate crude oil jumped 3% to trade at just over $86 a barrel.
Nasdaq jumps, small caps soar
The Nasdaq fared the best of the major indexes, rising more than 3%. The S&P 500 was not far behind with a gain of nearly 3%.
The S&P 500 sectors were all positive, with energy and materials among the best performers. The defensive sectors of consumer staples and real estate made the smallest gains.
Small caps were also giving the bears a spanking, with the Russell 2000 surging more than 3%.
The Innovator IBD 50 ETF (FFTY), a gauge for growth stocks, completed a bullish picture as it also gained more than 3%.
Dow Jones Today: Apple Stock Pops, CRM Shines
The Dow Jones Industrial Average was impressive heading into the close, rising almost 700 points. This equates to more than 2%.
Apple was among the top constituents of the Dow Jones to the upside. Warren Buffett stock gained more than 2%.
AAPL stock still has plenty of room before it can think of retaking its 50-day moving average, according to MarketSmith analysis.
Salesforce was the best performer on the Dow Jones today, as it jumped more than 5%. caterpillar (CAT) was just a little behind.
Only Coca Cola (KO) trailed but the soft drink giant was pretty much flat.
Twitter stock explodes over Elon Musk transfer
Twitter soared following news that Tesla CEO Elon Musk is set to end his takeover battle.
TWTR stock rose nearly 13% before the New York Stock Exchange halted trading.
The eccentric executive is expected to announce that he will pursue the deal to acquire the social media giant for the originally agreed $54.20 per share. The total price equates to approximately $44 billion.
He had tried to back out of the deal, citing the number of spam accounts and bots on the website.
Wedbush analyst Daniel Ives, who holds a neutral rating on TWTR stock, said it was “a smart move for Musk to move forward with the deal given the legal hurdles ahead. “.
Tesla stock was rocked by the news, although it rebounded to remain positive for the day, posting a gain of more than 2%. It remains below its major moving averages.
Donald Trump SAPS Acquisition of the digital world (DWAC), which is seeking to take its Truth Social social media platform public, fell nearly 3%. It has lost about two-thirds of its value so far this year.
The new Cathie Wood buys Soar
Tesla was among a trio of new buys from ARK Invest portfolio manager Cathie Wood that rose on Tuesday.
But, while TSLA stock was off its highs in the afternoon, its other longs rose.
On Monday, Ark Innovation ETF (ARKK) bought approximately 170,000 shares of Roblox (RBLX). His fund now owns 6,375,541 shares in the mobile game developer.
The stock rose almost 7% on Tuesday afternoon, near the day’s highs. It has cleared its short-term moving averages but is still behind the 50-day moving average.
RBLX stock has a lot of work to do as it remains down nearly 61% so far in 2022.
Cathie Wood also bought just over 49,000 shares of automation software UiPath (PATH). ARKK now holds 27,292,202 shares.
This title performed better than Roblox, jumping nearly 9%. But he’s still down 68% for the year, meaning he’s got a huge amount of catching up to do. It now sits just below its 21-day exponential moving average.
Neither stock would be considered worthy of consideration by CAN SLIM investors, due to their low IBD composite ratings.
Outside of Dow Jones: DINO soars as these stocks pass entries
In contrast, a trio of notable stocks made bullish moves on Tuesday as the market rally attempts to gain momentum. However, with the market still correcting, new exposure can be very risky.
Oil refiner HF Sinclair is actionable after clearing a handle cup base with a buy point of 56.40.
The relative force line has increased. It is in the top 2% of stocks by price performance over the past 12 months.
DINO stock sits at the top of the Oil & Gas Refining/Manufacturing industry group, which is ranked No. 9 out of the 197 IBD groups.
Neurocrine Biosciences is trading just below its buy zone after breaking above a buy point of 109.36. This action comes on the back of a bullish advance above its 50-day moving average. The line of relative strength also rises sharply.
Meanwhile, DoubleVerify is back in its buy zone above an entry point of 28.07 in a bottoming base. It also sent an aggressive buy signal as it moved back above Friday’s high.
NBIX and DV are both members of the Leaderboard list of top stocks. Exposure to both names was increased on Tuesday due to bullish price action.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more growth stock analysis.