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.
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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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