Dow Jones Up As Oracle appears when upgrading; Elon Musk mocks short call, Tesla stock market gains | Investor’s Business Daily

The Dow Jones Industrial Average gained as Microsoft (MSFT) rose amid a merger report. You’re here (TSLA) arose after CEO Elon Musk mocked a top investor for shorting the stock. Oracle (ORCL) jumped on an analyst call ahead of earnings.


Meanwhile, a trio of notable names attempted escapes. Intapp (INTA), WW Grainger (GWW) and biogenic (BIIB) all buy points tested.

Nasdaq shines as IBD 50 jumps

The Nasdaq outperformed the other major indices with an increase of more than 1%. Broadcom (AVGO) and Airbnb (ABNB) were strong here, rising nearly 6% and over 5%, respectively.

The benchmark S&P 500 was also strong, up 0.5%. Carnival (CCL) rose almost 13% after a pair of bullish calls from Wall Street.

S&P 500 sectors were mixed. Technology and consumer discretionary were the best performers. Real estate and energy were the worst performers.

Small caps rose slightly, with the Russell 2000 up 0.4%. Growth stocks outperformed, however, with the Innovator IBD 50 (FFTY) ETF rising 1%.

Dow Jones Today: Microsoft Up Amid Merger Report

The Dow Jones Industrial Average rose less than 100 points before the close. This translates to a gain of 0.2%.

Microsoft shares rose 0.8% as the Wall Street Journal announced that the Federal Trade Commission would take action to block its acquisition of the video game giant. ActivisionBlizzard (ATVI).

Citing a person familiar with the matter, the Journal said the FTC would file an injunction in federal court to stop it from moving forward. He had already taken legal action to prevent the deal from going ahead.

This is just the latest snag in the proposed deal, with the UK Competition and Markets Authority having previously decided to block the merger, although an appeal has been lodged.

MSFT was far from the best performer in the Dow Jones today. Intel (INTC) led the rise with an increase of nearly 5% while Boeing (BA) increased by almost 2%.

Boeing is the IBD stock of the day after clearing an entry of 221.33. It was added to SwingTrader on Thursday.

Ranking Stock Selling power (CRM) was the worst performer in the Dow with a decline of more than 1%.

Tesla supplies after Elon Musk mocks short seller

Tesla is enjoying its best winning streak in history. The stock is on track for 12 straight days higher, roaring more than 35% in that time frame, according to Dow Jones Market Data. That makes it Tesla’s longest winning streak and best 12-day streak since February 2023, when it had a 36.3% run.

Tesla CEO Musk has never been a fan of short sellers. And he couldn’t resist poking fun at legendary investor Bill Miller on Twitter.

Musk posted a laughing face emoji in response to a January video of the former hedge fund manager revealing a short position in the automaker.

“If it goes up, I’m going to short it again,” Miller said in the video, where he also said the electric vehicle giant was “now losing market share.”

It will have been a costly exchange if he kept his word. At the time, he claimed that Tesla “wasn’t worth $380 billion.” In fact, its current market capitalization has now soared to $778 billion.

Tesla stock is currently a member of the IBD ranking. It is well extended from an entry of 207.79 and is now up around 130% since the start of 2023.

Oracle Earnings Due, Stock Pops On Bullish Call

Oracle’s results are expected after the close, but it beat the report on a bullish call from analysts.

Wolfe upgraded ORCL to outperform its peers, citing “accelerating revenue growth as well as expanding margins.” He called for margins to average back to 40% over time. His price target is 130.

The upgrade drove the stock up, with Oracle’s stock up about 6%. ORCL is now up nearly 39% so far in 2023.

JPMorgan also raised its Oracle price target ahead of the report to 109. It maintained its buy rating.

EPS is expected to rise 3% to $1.58 per share, according to Zacks Investment Research. Revenue is expected to rise 16% to $3.74 billion. That would be on the back of 18% revenue growth for three consecutive quarters.

Oracle has shown impressive relative strength since exiting an entry of 91.22 in late March. ORCL stock has made excellent progress since then, finding support at the 21-day exponential moving average along the way.

It was also reported that Oracle invested in AI startup Cohere, which also attracted investment from Nvidia (NVDA).

Outside of Dow Jones: 3 stock test entries

With the market in a confirmed uptrend, now is the perfect time to keep an eye out for any breakouts.

Intapp is in a buy zone after breaking through a consolidation pattern buy point of 47.04, according to MarketSmith analysis. This is a first step model for stock financial software, a plus.

He also saw his relative strength line reach new heights. Strong overall performance earned INTA an IBD composite score of 96 out of 99.

WW Grainger is also usable after clearing a flat base. The ideal entry point here is 709.21. Earnings are a particular strength for the Building Materials game, with its EPS rating of 96 out of 99.

Biogen is one to watch for now after briefly erasing a flat base entry on the weekly chart at 319.74. It is now back below the buy point. The outperformance is strong, but not ideal, which is reflected in its IBD composite rating of 87.

Please follow Michael Larkin on Twitter at @IBD_MLarkin for more growth stock analysis.


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