Dow Jones Increased As Tesla Stock Reached $ 1 Trillion Mark; Donald Trump SPAC Plummets

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

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

Nasdaq Leads As Growth Stocks

The Nasdaq was the leading major index of the day as it fell 0.9%. Tesla leads here, but Moderna (MRNA) also stands out with nearly 7%.

The S&P 500 also rose, albeit by a thinner 0.5%. Nucor (NUE) is a leading stock here, rising approximately 7%.

US Stock Market Overview Today Index Symbol Price Gain/Loss % Change Dow Jones (0DJIA) 35743.78 +66.76 +0.19 S&P 500 (0S & P5) 4566.92 +22.02 +0.48 Nasdaq (0NDQC) +152236.78 +66.76 +0.19 S&P 50. + 0.99 IBD 50 (FFTY) 50.19 +0.80 +1.62 Last Update: 4:04 PM ET 10/25/2021

S&P sectors closed mostly positive, leading to energy and consumer discretionary. Finances and equipment were the only ones caught.

Small caps have also been good despite financial weakness. Russell 2000 ended with a 1%gain.

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

Dow Jones Leads As Disney’s Stock Leader

The Dow Jones Industrial Average caught up with other major indices, but still rose 0.2%.

Walt Disney stock is the top share on the Dow Jones today, closing with a gain of 1.5%.

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

Disney takes its money from Home Depot (HD), which rose 1.4%, and Visa (V) which resulted in a profit of 1.1%.

Tesla Stock Reaches $ 1 Trillion, Leaving Buy Zone

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

This has now extended from a 900.50 buy point from a deep appraisal base, the MarketSmith analysis shows. The EV giant has already given investors plenty of early entry during the merger.

The stock rose after another record quarter for the company which saw it beat earnings views.

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

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

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

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

Donald Trump SPAC Falls Hard

A listed special purpose acquisition company linked to former President Donald Trump has fallen sharply after opening higher.

The stock closed about 11%, giving more than 31% to its session high of 121.62. It further drifted to its all-time high of 175, which reached on Friday.

Digital World Acquisition exploded with the news it will be the vehicle that Trump Media & Technology Group will deliver to the public through a merger.

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

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

SPAC stock is still rising significantly overall, as it has been trading around 10 levels for most of October.

Stock Of The Day Eyes Entry

Albemarle stock is looking for new entry after rising more than 3% in 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 hold after closing, which will provide a lower buy point at 244.46.

Investors can still buy lithium stock on Monday following its strong market action. It rose from its main 50-day line, which passed very short levels.

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

Institutional investors are on the rise, with its Accumulation-Distribution Rating entering solid B. ALB’s stock is the current IBD Stock Of The Day, and was also added to SwingTrader Monday.

This 3 Stocks Pass Buy

Playing energy Denbury is in a buy zone after diverting from a consolidation, according to MarketSmith analysis. The buying point here is 81.47.

Energy stocks are performing well lately, and the relative strength line of the stock is rising. Earnings must be paid within 10 days.

One strategy featured by Investor’s Business Daily is to use options as a strategy to reduce risk around profits. This is a way to maximize the upside potential of moving the stock around earnings, while reducing downside risk.

Cadence Design Systems was just below its entry after a brief move above the cup-without-handle entry of 168.71.

The overall performance is strong for electronics design software makers. It’s worth tracking for a potential revenue gap-up, as Q3 results are due after closing.

Electric infrastructure stock Quanta Services is sitting in a buy zone after exiting on a flat base. The buying point here is 119.80.

The relative strength line seems to be evolving again, which is a positive. Due to strong earnings performance, it earned 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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