The Dow Jones Industrial Average dipped as House Speaker Kevin McCarthy issued a challenge to President Joe Biden ahead of their debt ceiling meeting this afternoon. DraftKings (DKNG) soared on a bullish analyst call. Apple (AAPL) dipped following a downgrade.
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McCarthy Urges Biden To Beat Debt Ceiling Addiction
McCarthy and Biden are getting set to meet as the clock continues to tick on debt ceiling talks. The U.S. runs the risk of default if an agreement is not reached within the next 10 days.
The duo spoke via telephone on Sunday, a conversation described as “productive.” Treasury Secretary Janet Yellen once again said over the weekend that June 1 is a “hard deadline” to raise the debt limit.
Meanwhile, McCarthy was in a pugnacious mood as he got set to head to the Oval Office for further discussions with Biden.
“What we have to do here is get the spending addiction to stop,” he told reporters. “The Democrats and the president (are) refusing to even to negotiate. No household would run this way. That is why we go from crisis to crisis.”
The GOP leader also continued to strike a defiant tone on spending, saying the government is “going to spend less than we did last year.”
Nasdaq Gains As Small Caps Pop
The Nasdaq fared better than the other major indexes, rising 0.6%. Micron Technology (MU) lagged, falling more than 3% after China’s Cyberspace Administration barred critical information infrastructure operators in the communist country from purchasing its products.
The benchmark S&P 500 was making a minor gain of 0.2%. Dating stock Match Group (MTCH) impressed here with a gain of over 6% after it named Meta Platforms (META) alumni Stephane Taine as chief product officer of its Hinge dating app.
The S&P 500 sectors were mostly positive. Communication services and real estate were the top performers. Both consumer staples and consumer discretionary lagged.
Small caps were outperforming by some margin, with the Russell 2000 rising over 1%. Growth stocks were also excelling, with the Innovator IBD 50 ETF (FFTY) up over 1%.
Dow Jones Today: Apple Stock Slips After This
The Dow Jones average was struggling most out of the major indexes, slipping 0.2%.
Industrial conglomerate 3M (MMM) was doing best, rising nearly 3%. It remains stuck below its 50-day moving average for now.
Nike (NKE) was the worst performer on the Dow Jones today, falling around 3%. An analyst downgraded the stock to a sell rating. Shoe stocks have been coming under pressure following poor results from Foot Locker (FL).
Apple stock showed resilience even as it fell 0.4%. It was dipping after it was downgraded to hold from buy by Loop Capital. It did hold its price target at 180. Loop’s supply chain analyst John Donovan believes Apple has reduced its shipments for the June quarter. This could cause the firm to fall short on its revenue guidance.
DraftKings Stock Surges On Upgrade
DraftKings popped nearly 8% after UBS analyst Robin Farley upgraded it to buy from neutral and hiked his price target to 30 from 19. He cited “higher revenue growth and greater flow-through to EBITDA” as the rationale for the upgrade.
According to Farley, the expansion of sports betting into new states could fuel further growth.
The gambling stock is now extended past a 21.72 buy point, according to MarketSmith analysis. It is up nearly 133% so far in 2023.
DKNG is a member of the prestigious IBD Leaderboard list of top stocks. It has been showing renewed signs of accumulation as it moves to higher ground.
The stock currently holds an average analyst rating of outperform and price targets ranging from 17 to 39,
Outside Dow Jones: MELI Among Stocks Testing Entries
Former Leaderboard stock MercadoLibre is in a buy zone after clearing a flat base entry at 1,337.85 on its weekly chart, MarketSmith analysis shows.
The e-commerce stock boasts a perfect IBD Composite Rating of 99. Stock market performance is its strongest suit and it is up nearly 64% so far in 2023.
Array Technologies is just below its entry after earlier clearing its 24.69 entry by a small margin. Low volume on the move is a flaw.
The solar stock boasts a good mix of earnings and stock market performance. It is in the top 4% of stocks in terms of price performance over the past 12 months.
10X Genomics is trading in a buy zone after clearing a flat-base entry of 56.32. Volume was above average here.
At the moment, this a more speculative play, with its EPS Rating a poor 21. But it is on track for a profit this year. Big Money has also been a net buyer, with its Accumulation/Distribution Rating a solid B+.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more analysis of growth stocks.
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