The Dow Jones Industrial Average backed off record levels Monday amid news on the replacement of Walt Disney (DIS) Chief Executive Bob Iger. Boeing (BA) moved higher on word of a potential strike deal, while Nvidia (NVDA) touched new heights. And Humana (HUM) and Cigna (CI) had contrasting fortunes amid reports of merger talks on the stock market today.
The Dow Jones Industrial Average saw early gains fade, backing off after making a record close Friday. It fell around 300 points, which equates to a dip of 0.8%. Outside of Boeing, UnitedHealth (UNH) fared best with a gain of more than 1%. American Express (AXP) lagged with a decline of more than 2%.
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Meanwhile, the Nasdaq composite reversed lower, falling 0.1%. Super Micro Computer (SMCI) fared best as it popped more than 2%, with Marvell Technology (MRVL) making a similar gain. Warner Bros. Discovery (WBD) underperformed, falling around 3%.
Stock Market Today: Tech Stocks Shine, Real Estate Lags
The benchmark S&P 500 lost 0.4%, slipping back slightly on last week’s record close. Kenvue (KVUE) was a top performer as it jumped more than 6% on news Starboard Value has taken a stake in the firm. Monolithic Power Systems (MPWR) lagged with a skid of more than 5%.
The S&P 500 sectors were mostly negative. Only technology moved higher, while real estate and health care lagged.
Small caps also were getting butchered by the bears, with the Russell 2000 diving 1.6%. Growth stocks reversed lower, with the Innovator IBD 50 (FFTY) exchange traded fund falling 0.7%.
Magnificent Seven: Nvidia Hits Record After Bullish Call
The so-called Magnificent Seven were having a mostly negative start to the week.
But Nvidia managed to buck the trend, as it hit a fresh all-time high amid a bullish Wall Street call. The Leaderboard stock traded as high as 141.80, a split-adjusted record. While it gave some of this back, it remained up nearly 2% in recent action.
The stock is flirting with a 140.76 buy point, MarketSurge analysis shows. Nvidia shares got a boost after Barclays reiterated its overweight rating on the stock, and touted its artificial intelligence credentials.
Apple (AAPL) and Google-parent Alphabet (GOOGL) were the only other members of the group in positive territory, though their gains were fractional.
Tesla (TSLA) was the worst laggard here as it dropped more than 1%. The stock, which reports earnings late Wednesday, is just under its 50-day moving average.
Meta Platforms (META), Microsoft (MSFT) and Amazon.com (AMZN) were also lower with dips of less than 1% each.
Stock Market Today: 3 Stocks Test Entries
Meanwhile, there were a number of breakouts despite the negative overall action.
Specialty financial services stock Marex (MRX) is testing a flat-base entry of 26.03, according to MarketSurge analysis. Overall performance is very good, with the stock holding an IBD Composite Rating of 98. Earnings are a weak spot though, reflected in its Earnings Per Share Rating of 64 out of 99.
Institutions have been net buyers of the stock of late, with its Accumulation/Distribution Rating coming in at B+.
Financial software stock nCino (NCNO) briefly cleared a consolidation entry of 37.48. This is a first-stage pattern, a positive. However, it is around 16% above its 50-day moving average, meaning it is extended from this important benchmark.
Defense stock Loar (LOAR) briefly cleared a flat-base buy point of 80.79, though it has retreated back below this level. This is also a first-stage pattern.
IBD Research shows early-stage bases are more likely to succeed. Loar earnings are seen ramping up 69% next year, above the growth levels sought by investors following The IBD Methodology.
10:54 a.m. ET
Disney: Iger Succession Plan Emerges
Disney stock slipped marginally on the stock market today amid news the firm is making progress in its quest to replace current CEO Bob Iger. The firm has said it is shooting to have a new replacement for Iger in place in “early 2026.”
It comes as the Dow Jones component announced Morgan Stanley Executive Chairman James P. Gorman will be taking over as Disney’s chairman on Jan. 2. Gorman, who had already been chairing the Disney Board’s Succession Planning Committee, will succeed incumbent Mark G. Parker.
“A critical priority before us is to appoint a new CEO, which we now expect to announce in early 2026,” Gorman said in a media release. “This timing reflects the progress the Succession Planning Committee and the Board are making, and will allow ample time for a successful transition before the conclusion of Bob Iger’s contract in December 2026.”
Iger returned to the CEO role in November 2022 following the dismissal of his previous successor Bob Chapek, whose performance had disappointed investors.
Disney stock was slightly lower, skidding 0.4%. It sits above its 50-day line, but below the 200-day moving average. Disney stock lags the benchmark S&P 500 for 2024 despite a year-to-date lift of more than 7%.
Stock Market Today: Boeing Pops Amid Labor Deal Hopes
Boeing stock took flight in early action Monday as the aerospace giant and the International Association of Machinists and Aerospace Workers came to terms on a potential new contract. If it is approved by workers it would bring a crippling monthlong strike to an end.
A vote on the proposal is expected Wednesday. Under the terms of the deal, workers get a 35% wage increase over the four-year span of the contract.
Standard & Poor’s has estimated that Boeing is losing $1 billion a month due to the strike.
Boeing stock rallied nearly 4% and is now trying to retake its critical 50-day moving average, according to MarketSurge analysis.
Cigna Swoons On Humana Acquisition Talks
Health insurance plays Cigna and Humana had contrasting fortunes after Bloomberg reported the companies have restarted merger talks. According to Mizuho analyst Ann Hynes it is likely that Cigna will attempt to get the buyout of Humana over the line.
She said that the deal is reliant on the outcome of the forthcoming presidential election, and that she believes “the likelihood is high.”
Humana stock ticked higher in early trade on the stock market today. In contrast, Cigna stock gapped lower, falling 4%.
It lost ground on the 200-day moving average after falling below the technical benchmark Friday, MarketSurge analysis shows.
Stock Market Today: Financial Software Play In Buy Zone
Finally, financial software stock Alkami Technology (ALKT) is in the actionable zone above a flat-base buy point of 36, according to MarketSurge analysis. Shares surged nearly 6% Monday.
One negative here is this is a fifth-stage base. Such later stage patterns are less likely to succeed, IBD research finds. However, the relative strength line is gaining traction.
The stock is an excellent all-around performer, with its IBD Composite Rating a near-ideal 98 out of 99.
Earnings growth has been strong of late, earning it an Earnings Per Share Rating of 80. This makes it of interest to those following the IBD investing methodology.
Wall Street expects earnings to soar 120% in 2025, according to MarketSurge data. It also resides in the top 8% of issues in terms of price performance over the prior 12 months.
Please follow Michael Larkin on X at @IBD_MLarkin for more analysis of growth stocks.
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