Dow Dips Amidst Tech Weakness, Nasdaq Rebounds; Bill Ackman's Alphabet Eyes Buy Point

Major indices declined on Monday, with the Dow Jones Industrial Average falling 162 points. However, certain stocks performed well, including All States, Badger Meter, and Ares Management, which approached buy points. Artificial intelligence stocks Super Microcomputer and Nvidia gained ground, while Bitcoin and related stocks surged.

Market Overview: Dow Falls Amid Tech Weakness, Nasdaq Rebounds

The major market indexes experienced a mixed session on Monday, with the Dow Jones Industrial Average (DJIA) and other prominent benchmarks declining. The decline was attributed to weakness in artificial intelligence (AI) stocks, including Super Microcomputer (SMCI) and Nvidia (NVDA). However, a Bill Ackman-backed stock, Alphabet (GOOGL), approached a buy point, while former President Donald Trump's Digital World Acquisition (DWAC) surged on market news. Bitcoin and related stocks also experienced notable gains.

Dow Jones Today: Boeing Up, Disney Shines

The Dow Jones Industrials ended the session down 162 points, or 0.4%. Boeing (BA) witnessed early gains, but its shares ultimately closed 1.4% higher. CEO Dave Calhoun's announcement of his departure later this year sparked the rise in shareholder sentiment.

Walt Disney (DIS) led the Dow Industrials index with a 3% surge, benefiting from an upgrade to overweight by Barclays. The media giant has witnessed a 32% increase in its stock price year-to-date.

3M (MMM) and Intel (INTC) were the worst Dow Jones laggards, with declines of 1.8% and 1.7%, respectively, amidst concerns related to China.

Bill Ackman AI Stock Eyes Entry

Billionaire investor Bill Ackman's Pershing Square investment company holds a stake in Alphabet, the parent company of Google. Google's stock has been hovering near a buy point after a strong performance over the past year. MarketSurge analysis indicates an undefined consolidation pattern with a current quote of 153.78.

Google's stock closed on a high note despite falling 0.5% on Monday. Its accumulation/distribution rating of B- suggests that large institutions see potential in the stock. Google's shares have soared by 43% in the past twelve months.

Magnificent Seven: Nvidia Stock, Tesla Rally

Other so-called Magnificent Seven stocks exhibited varying fortunes in the market. Tesla (TSLA) gained 1.1%, despite a downgrade by Mizuho Securities. Nvidia (NVDA) also rose 0.8%, extending its gains from the recent buy point and approaching an all-time high. Amazon.com (AMZN) experienced a modest increase of 0.5%.

However, Meta Platforms (META) and Microsoft (MSFT) both declined by more than 1%. Apple (AAPL) saw a rally attempt fade, resulting in a 0.8% loss.

Donald Trump Stock Rises Ahead of Change

Digital World Acquisition has experienced significant volatility in recent days. After shareholders approved its merger with Trump Media & Technology Group, the stock surged on Monday. News of the former president reducing the size of his bond due to his New York fraud case further fueled the rally.

Digital World closed just below its session high, rising 35.2%. It has regained its 50-day moving average and cleared its 21- and 10-day lines. The stock has benefited from Trump's increased momentum in his bid to secure his party's presidential nomination.

Starting Tuesday, Digital World will trade under the ticker symbol DJT and the name Trump Media & Technology Group.

Stock Market Today: Bitcoin Rises Above $70,000

Bitcoin regained its momentum on Monday, rising back above the $70,000 per token level. It traded at close to $71,000, according to CoinDesk.

Grayscale Bitcoin Trust (GBTC) surged 11.2%, while BlackRock's spot bitcoin ETF, iShares Bitcoin Trust (IBIT), gained 11.4%. Other bitcoin stocks also witnessed gains, with Coinbase (COIN) rising 9.5% and Riot Platforms (RIOT) up 9.1%. CleanSpark (CLSK) performed even better, gaining 19.9%.

Outside the Dow Jones: 3 Stocks Close to Buy Points

Several stocks are nearing buy points in the market. Allstate (ALL) is in a buy zone after clearing a flat base with an ideal entry point of 168.05. The stock is experiencing a turnaround, with profitability returning in recent quarters. Analysts project a 1,200% earnings increase in 2024.

Badger Meter (BMI) is in a cup-with-handle base with an ideal entry point of 164.81. Earnings have grown by an average of 39% over the past three quarters.

Ares Management (ARES) is forming a flat base with an ideal buy point of 139.40. It closed flat on Monday, finding support at its 21-day exponential moving average. Ares stock has a strong overall performance and an EPS Rating of 97.