The Dow Jones Industrial Average continued to rally strongly Tuesday afternoon. Twitter (TWTR) exploded after You’re here (TSLA) CEO Elon Musk moved to bite the takeover bullet. Some new Cathie Wood buys were surging. Apple (AAPL) popped goal Boeing (BA) was the top blue chip.
There was plenty of bullish action, with a trio of notable stocks testing entries. HF Sinclair (DINO) and Neurocrine Biosciences (NBIX) staged breakouts while DoubleVerify (DV) made a bullish move.
Pink volume on both Nasdaq and the New York Stock Exchange according to early data, a bullish sign.
The yield on the benchmark 10-year Treasury note slipped one basis point to 3.63%. West Texas Intermediate crude oil popped 3% to trade at just over $86 per barrel.
Nasdaq Jumps, Small Caps Soar
The Nasdaq fared best out of the major indexes as it powered 3.3% higher. The S&P 500 was not far behind with a 3.1% gain.
The S&P 500 sectors were all positive, with energy and financials the best performers. The defensive consumer staples and real estate areas made the slimmest gains.
Small caps were also giving the bears a spanking, with the Russell 2000 jumping 3.9%.
The Innovator IBD 50 ETF (FFTY), a bellwether for growth stocks, completed a bullish-looking picture as it also gained 3.4%.
Dow Jones Today: Apple Stock Pops, CRM Shines
The Dow Jones Industrial Average powered higher into the close, gaining more than 800 points. This equations has 2.8% gain.
Apple was among the Dow Jones components powering higher. The Warren Buffett stock gained more than 2%.
AAPL stock has plenty of room left before it can think about retaking its 50-day moving average, MarketSmith analysis shows.
Boeing was the top performer on the Dow Jones today, rising 5.9%. Salesforce (CRM) was just slightly behind with a 5.3% gain.
Coca Cola (KO) lagged but the fizzy-drink giant still gained 0.2%.
Twitter Stock Explodes On Elon Musk Move
Twitter rocketed higher after news that Tesla CEO Elon Musk is set to bring his takeover battle to a close.
TWTR stock closed the session up 22.2%. It surged after trading reopened after it was temporarily closed on the New York Stock Exchange due to reports about Musk’s move.
The eccentric executive is trying to bring his legal fight with the the social media giant and complete the transaction for the originally-agreed $54.20 per share, according to a regulatory filing. The total price tag equals to about $44 billion.
He had been trying to back out of the deal, citing the number of spam and bot accounts on the website.
Wedbush analyst Daniel Ives, who holds a neutral rating on TWTR stock, said it was “a smart move for Musk to go ahead with the deal given the legal hurdles that were ahead.”
Tesla stock was sent reeling by the news but fought back to end the session up 2.9%. It remains shy of its major moving averages.
Donald Trump PSPC Digital World Acquisition (DWAC), which seeks to take his social media platform Truth Social public, closed the day down 5.3%. It has lost about two-thirds of its value so far this year.
New Cathie Wood Buys Soar
Tesla was one of a trio of new buys by ARK Invest portfolio manager Cathie Wood that moved higher Tuesday.
But, while TSLA stock was off its highs in the afternoon, her other purchases powered higher.
On Monday, Ark Innovation ETF (ARKK) bought about 170,000 shares of Roblox (RBLX). Her fund now holds 6,375,541 shares in the mobile game developer.
The stock was ended near highs for the day as it gained 6.2%. It cleared its short-term moving averages but is still lagging the 50-day moving average.
RBLX stock has much work to do, as it remains down nearly 61% so far in 2022.
Cathie Wood also bought just over 49,000 shares of automation software stock UiPath (PATH). ARKK now holds 27,292,202 shares.
This stock has performed better than Roblox, jumping 7.8%. It did close off highs however and is still down nearly 69% for the year, meaning it has tremendous ground to make up. It now sits just beneath its 21-day exponential moving average.
Neither stock would be considered worthy of consideration by CAN SLIM investors, due to their poor IBD Composite Ratings.
Outside Dow Jones: DINO Soars As These Stocks Pass Entries
In contrast, a trio of noteworthy stocks made bullish moves Tuesday as the market rally tries to gather pace. However, with the market still in correction, new exposure can be very risky.
Oil refiner HF Sinclair is actionable after it cleared a cup-with-handle base with a 56.40 buy point.
The relative strength line has been spiked. It is in the top 2% of stocks in terms of price performance over the past 12 months.
DINO stock sits at the summit of the Oil & Gas Refining/Manufacturing industry group, which is ranked No. 9 out of the 197 IBD groups.
Neurocrine Biosciences ended the day just below its buy zone after earlier charging past a 109.36 buy point. This action comes following a bullish advance above its 50-day moving average. The relative strength line is also spiking.
Meanwhile DoubleVerify is back in its buy zone above a 28.07 entry point in a bottoming base. It also flashed an aggressive buy signal by moving back above Friday’s high.
Both NBIX and DV are members of the Leaderboard list of top stocks. Exposure to both names was increased on Tuesday due to the bullish price action.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more analysis of growth stocks.