Dow Jones Gains As Tesla Hits $1 Trillion Mark; Donald Trump SPAC Plummets; 3 Stocks Pass Buy Points

The Dow Jones Industrial Average rose as Walt Disney (DIS) led the blue chips. Tesla (TSLA) passed the $1 trillion mark while Donald Trump SPAC Digital World Acquisition (DWAC) plummeted from opening highs.

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Meanwhile, a host of stocks made positive moves amid the bullish market action. Lithium play Albemarle (ALB) is eyeing a new entry, while Denbury (DEN), Cadence Design Systems (CDNS) and electric infrastructure play Quanta Services (PWR) passed buy points.

Nasdaq Gains As Growth Stocks Lead

The Nasdaq the top major index of the day as it popped 0.9%. Tesla was leading the way here, but Moderna (MRNA) also stood out with a gain of about 7%.

The S&P 500 was also up, though by a slimmer 0.5%. Nucor (NUE) was a top stock here, rising about 7%.

The S&P sectors closed mostly positive, with energy and consumer discretionary leading. Financials and utilities were the only laggards.

Small caps also turned in a good gain despite the weakness among financials. The Russell 2000 was finished with a gain of 1%.

However, it was growth stocks that made the most bullish move, with the Innovator IBD 50 ETF (FFTY) posting a gain of 1.6%.

Dow Jones Gains As Disney Stock Leads

The Dow Jones Industrial Average lagged the other major indexes, but was still up 0.2%.

Walt Disney stock was the leading component on the Dow Jones today, closing with a gain of 1.5%.

However, shares in the media giant remain rooted below the key 50-day and 200-day moving averages.

Disney was getting a run for its money from Home Depot (HD), which rose 1.4%, and Visa (V) which ended up with a gain of 1.1%.

Tesla Stock Reaches $1 Trillion, Leaves Buy Zone

Tesla stock managed to join the $1 trillion market-cap club as it jumped almost 13%.

It is now extended from a 900.50 buy point from a deep cup base, MarketSmith analysis shows. The EV giant had already provided investors with a slew of early entries during the consolidation.

The stock has been going higher after another record quarter for the firm saw it beat earnings views.

Tesla stock was given another boost Monday after Morgan Stanley upped its price target from 900 to 1,200, citing higher volume expectations after the company’s Q3 report. In addition, rental car giant Hertz ordered 100,000 Tesla vehicles for its fleet.

Meanwhile, CEO Elon Musk tweeted Sunday that the Tesla FSD Beta 10.3 was “seeing some issues,” so the company was rolling back to Beta 10.2. He then posted on Twitter early Monday that FSD Beta 10.3.1 was “rolling out now.”

Tesla stock is a member of the prestigious IBD Leaderboard list. 

Among related stocks, General Motors (GM) fell about 0.2%, while Ford (F) fell just over 2% . Chinese EV play Nio (NIO) rose almost 6%.

Donald Trump SPAC Falls Hard

A listed special purpose acquisition company linked to former President Donald Trump fell hard after opening higher.

The stock closed down about 11%, giving up more than 31% on its session high of 121.62. It is even further adrift of its all-time high of 175, which it reached Friday.

Digital World Acquisition exploded on the news it is to be the vehicle that will take the Trump Media & Technology Group public via a merger.

It skyrocketed after it emerged that the company is looking to launch a social media site named Truth Social. There will also be a subscription-based video-on-demand service to be called TMTG+.

Trump has seen his access to key social media networks such as Twitter (TWTR) limited severely since the Jan. 6 Capitol riot.

The SPAC stock is still up bigly overall, as it had been trading at around the 10 level for much of October.

Stock Of The Day Eyes Entry

Albemarle stock is eyeing a new entry after rising more than 3% on the stock market today.

The stock is forming a cup base with a buy point of 253.19. It is also on track to form a handle after the close, which would give a lower buy point to 244.46.

Investors can still buy the lithium stock Monday following its strong market action. It has rebounded from its key 50-day line, passing very short-term levels.

The stock has gained around 60% so far this year, and demand for electric vehicles could send it higher still.

Institutional investors are piling in, with its Accumulation-Distribution Rating coming in at a solid B. ALB stock is the current IBD Stock Of The Day, and was also added to SwingTrader Monday.

These 3 Stocks Pass Buy

Energy play Denbury is in a buy zone after breaking out from a consolidation, according to MarketSmith analysis. The buy point here is 81.47.

Energy stocks have been performing very well of late, and the stock’s relative strength line is spiking. Earnings are due in 10 days.

An approach highlighted by Investor’s Business Daily is to use options as a strategy to reduce risk around earnings. It’s a way to capitalize on the upside potential of a stock’s move around earnings, while reducing the downside risk.

Cadence Design Systems is just below its entry after briefly moving above a cup-without-handle entry of 168.71.

Overall performance is strong for the electronics design software maker. It is worth keeping tabs on for a potential earnings gap-up, as Q3 results are due after the close.

Electric infrastructure stock Quanta Services is sitting in a buy zone after breaking out of a flat base. The buy point here is 119.80.

The relative strength line looks to be making progress again, which is a positive. Strong earnings performance has earned it an EPS Rating of 95 out of 99.

Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.

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