Stock Market Awaits Biden-McCarthy Debt-Ceiling Cage Match; DraftKings Soars To 52-Week High On Upgrade

The stock market was slow to start Monday’s session with Big Tech leading while the Dow Jones Industrial Average lagged. Investors awaited a contentious 5:30pm ET meeting between President Joe Biden and House Speaker Kevin McCarthy on the debt ceiling. DraftKings (DKNG) soared to the highest price since January 2022 after an upgrade.


The political opponents spoke Sunday on the debt ceiling and agreed to meet on Monday afternoon. Both parties said the conversation was positive. Time is ticking as the June 1 deadline approaches. The Treasury is set to run out money to pay certain obligations if no agreement is reached.

The Dow Jones Industrial Average inched 0.3% lower while the Nasdaq added 0.4%. The S&P 500 notched up 0.1%. The Russell 2000 fared better, adding back 0.7%.

NYSE volume fell while Nasdaq volume rose vs. the same time on Friday.

The Nasdaq 100-tracking Invesco QQQ Trust ETF (QQQ) gained 0.4%. The Innovator IBD 50 ETF (FFTY) held up better than the major indexes, climbing 1.1%.

Crude oil inched 0.2% higher to $71.87 per barrel. Gold futures edged up 0.4% but remain below the psychological $2,000 level. Bitcoin rallied 0.5% to $27,015.

The 10-year U.S. Treasury yield added 1 basis point to 3.7%. The CME FedWatch tool shows over 70% odds for no rate hike at the June Fed meeting. The remainder expect a quarter-point hike.

European stocks were mostly down, with the German DAX and Paris CAC dropping 0.5%. The London FTSE was relatively flat in afternoon trading.

IBD 50’s DraftKings Soars On UBS Upgrade

IBD 50 member DraftKings spiked over 6% after a UBS analyst upgraded the online sports betting and entertainment platform to buy from neutral and raised the price target to 30 from 19. The analyst sees more than 20% annual revenue growth through 2026, due to quicker state expansion and higher revenue per player.

Shares for this former meme stock are above the 5% buy zone of a cup base with a 21.72 buy point. Shares soared 15.3% on May 5, following higher-than-expected Q1 sales and a smaller loss on May 4.

Micron (MU) sank 4.4% after Chinese regulators said they would ban the memory chip giant’s products after it failed a security review, due to “relatively serious” cybersecurity risks.

Nvidia (NVDA), which reports first-quarter fiscal 2024 earnings Wednesday, edged 0.4%  higher.

Rival Advanced Micro Devices (AMD) rose 2.6%.

Also in the IBD 50, Global-e Online (GLBE) eased earlier losses, falling 2%, and is back in the buy zone of a consolidating base up to 36.67.

The Israel-based international e-commerce software platform reported higher Q1 quarter revenue and a smaller loss Friday.

Stock Market Today: E-Commerce Stock In The Buy Zone

South American e-commerce platform MercadoLibre (MELI) bolted 3.2% and hit the 1,337.85 buy point of a flat base.

Its relative strength line hit a fresh high as shown by the blue dot on the weekly chart. Shares gained 59%, hitting a 52-week high.

Facebook parent Meta Platforms (META) reversed course and gained 2.7%. European Union regulators fined the social media giant $1.3 billion for allegedly illegally sending and storing customer data to the U.S.

Ryanair (RYAAY) gave back earlier gains, trimming 0.3%, after the Irish passenger airline reported better-than-expected 2023 revenue. The low-cost airline cited higher demand and fares for the positive results.

Shares of the IBD 50 stock are in the 5% buy zone of a flat base with 99.44 buy point.

Other Stock Market Movers: Regional Bank Jumps

Regional bank PacWest (PACW) popped 9.7% on news it will sell 74 real estate construction loans to Kennedy-Wilson Holdings (KW) with a loan balance of $2.7 billion.

Shares of real estate investment company KW jumped 2.1% in Thursday’s stock market.

Dow Jones component JPMorgan Chase (JPM) gained 0.3% after raising net interest income guidance to $84 billion, attributed to taking over First Republic.

Shares of the financial giant are nearing the 141.88 buy point of cup-with-handle base. JPM hosts an Investor Day conference today in New York.

Also in the Dow, Nike (NKE) lost another 2.8% in heavy volume, on top of Friday’s 3.5% drop, after an analyst downgrade to sell.

The footwear stock is below its 200-day  moving average.

Follow Kimberley Koenig for more stock news on Twitter @IBD_KKoenig.


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