Stocks fell as Dow Jones Industrial Average component Apple (AAPL) got hit with a $2 billion fine from the EU while fellow Magnificent Seven stock Nvidia (NVDA) popped. JetBlue (JBLU) and Spirit Airlines (SAVE) had contrasting fortunes as their merger fell apart. Three Warren Buffett stocks are trading near entries on the stock market today.
John Deere is looking to cash in. That’s because it takes more than grit for today’s farmers to drive tractors, till soil and harvest crops. About 30% of farmland in the U.S. lacks sufficient connectivity, according to Deere. So in January 2024, Elon Musk’s SpaceX and its Starlink satellites announced a partnership with the farming giant to provide Wi-Fi for the company’s farm machinery. Experts say the deal could be a boon for both companies.” vid-name=”Elon Musk And Starlink Satellites Are Disrupting The Farming Industry. How Deere Is Looking To Cash In.” vid-cat=”Industry Insights” vid-date=”02/29/2024″ vid-date-tmsp=”1709196831″ vid-image=”https://www.investors.com/wp-content/uploads/2024/02/IBD_II_starlink022924-640×360.jpg” vid-authors=”MEREDITH HEYMAN, MIKE JUANG”>
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Meanwhile, a couple of other noteworthy stocks are also trading near buy points. Rollins (ROL) tested an entry while Fortinet (FTNT) is near the top of a base.
Stock Market Today: Nasdaq Dips, Small Caps Gain
The tech-heavy Nasdaq index was down 0.2% at midday. Warner Bros. Discovery (WBD) was lagging here as it fell around 5%, losing even more ground on its moving averages in the process.
The benchmark S&P 500 slipped fractionally. Hewlett Packard Enterprise (HPE) stood out here as it surged more than 9% as it extends gains from its earnings rally.
The S&P 500 sectors were mixed. Communication services and energy lagged most in the stock market today. Materials and utilities, the latter a defensive area, were performing the best.
Small caps were outperforming, with the Russell 2000 rising 0.4%. Growth stocks were getting nibbled by the bears, though, with the Innovator IBD 50 ETF (FFTY) falling 0.5%.
The 10-year Treasury note rose 4 basis points to 4.22% while the 30-year also gained 4 basis points to 4.37%. The 5-year yield popped 5 basis points to 4.21% while the 2-year jumped 7 basis points to 4.6%.
Dow Jones Today: Apple Stock Falls After Fine
The Dow Jones was giving up some ground amid the mildly negative early action. It was down nearly 90 points, or 0.2%.
Apple was among the worst Dow stocks as it fell around 3% on the news the EU is fining the company $1.95 billion. Its executive body, the European Commission, said the firm violated antitrust rules by restricting app developers from telling users about alternative ways to subscribe to music-streaming services.
It has ordered Apple to remove provisions that prevent developers from doing so.
“Apple’s conduct, which lasted for almost ten years, may have led many iOS users to pay significantly higher prices for music streaming subscriptions,” the commission said.
Chevron (CVX) turned in a similar decline to Apple stock. Merck (MRK), Nike (NKE) and Johnson & Johnson (JNJ) also lagged with dips of around 2% each.
Intel (INTC) fared best on the Dow Jones today as it rose almost 4%. International Business Machines (IBM) also stood out due to a nearly 3% lift. Big Blue is forming a base with a 196.90 buy point.
These Warren Buffett Stocks Eye Entries
One investor with a proven track record of outperformance over the long term is Berkshire Hathaway (BRKB) CEO Buffett. A few stocks held by the firm were trading in or near entries Monday.
Homebuilder Lennar (LEN) is in a buy zone after clearing a flat-base buy point of 156.01. It’s holding strongly above the 10-week moving average. The relative strength line had been taking a pause during the base-construction period. It is now trying to move higher.
Overall performance marks it as one of the better names on the stock market today, with LEN stock’s IBD Composite Rating coming in at 94. Solid fundamental performance is reflected in an 81 EPS Rating, out of 99.
Floor & Decor (FND) is slightly extended above a flat-base entry of 116.70. This is a first-stage pattern, a bonus because earlier-stage bases are more likely to succeed.
At the moment, earning are its main weakness, with its EPS Rating coming in at 67. Earnings are seen falling this year but popping 40% in 2025. It is in the top 13% of stocks in terms of price performance over the last 12 months.
Ally Financial (ALLY) is flirting with a flat base entry of 38.03 on its weekly chart, MarketSurge analysis shows.
The financial stock gained around 1%. However its overall performance is far from ideal. Earnings are the key weakness.
IBD recommends buying stocks with strong earnings and price performance rather than laggards. Look for leaders in strong industries that are showing superior earnings growth and sales, such as those in the IBD 50.
Magnificent Seven: Nvidia Jumps As Tesla Stock Lags
So-called Magnificent Seven stocks were enduring mixed fortunes.
Nvidia (NVDA) was faring best as it turned in a gain of nearly 4%. The Leaderboard stock is extended past its most recent entry. The chip stock, a leader in artificial intelligence, continues to climb after overcoming brief resistance at the 800 level. UBS reiterated a buy rating on Nvidia stock.
E-commerce giant Amazon.com (AMZN), Microsoft (MSFT) and Meta Platforms (META) turned in fractional gains.
Google parent Alphabet (GOOGL) was having another tough session as it fell more than 3% in above-average volume. It continues to show weakness amid the fallout from criticism of its Gemini artificial intelligence system, and is now testing the 200-day moving average.
Tesla (TSLA) fared worst as it fell more than 6%. It comes after the lawyers who scotched Elon Musk’s $56 billion Tesla pay package in court demanded $6 billion in shares as payment on Friday. The electric-vehicle maker remains stuck below its 50-day and 200-day moving averages.
JetBlue, Spirit Merger Fails
JetBlue and Spirit Airlines were having mixed fortunes after the companies decided to call off their mooted $3.8 billion merger. The decision comes after a court ruling that the deal would reduce competition and harm cost-conscious fliers.
JetBlue stock rallied nearly 2% and is trading above its major and short-term moving averages, MarketSurge analysis shows.
In contrast, Spirit stock dived more than 14% to a nearly record low. The airline is projected to turn in losses in both 2024 and 2025. The moves underline the inherent risks of betting on mergers, especially under the Biden Administration, which has taken a tough stance on takeovers.
Stock Market Today: Ford Stock Jumps Amid EV Sales Pop
Ford Motor (F) was also performing well on the stock market today as it jumped amid a large increase in EV sales. The automotive giant saw U.S. sales soar 10.5% year-over-year in February.
Electric vehicle sales jumped 81%, though just shy of 90% of the company’s sales still came from cars and trucks with internal combustion engines. In total, it sold 174,192 vehicles in February.
The stock rose more than 4%, pulling away from its 200-day moving average. This gauge remains above the key 50-day line for now.
Outside The Dow Jones: 2 Stocks Near Buy Points
With the stock market in a confirmed uptrend it remains important to keep an eye on potential breakouts.
Rollins is in a buy zone after clearing a cup-with-handle entry of 44.43. It is around the buy point in midday trading.
Overall performance is very strong for the pest control play, which is reflected in its IBD Composite Rating of 95. It also holds a strong EPS Rating of 95; however, lackluster fund sponsorship is one negative here.
Fortinet is close to a breakout after forming a 33-week cup-with-handle base. The ideal entry point here is 73.91.
The stock boasts very strong earnings performance. Big Money is also keen on the stock, with its Accumulation/Distribution Rating coming in at B. In total, 48% of its stock is held by funds, according to MarketSurge data.
Please follow Michael Larkin on X, formerly known as Twitter, at @IBD_MLarkin for more analysis of growth stocks.
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