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The Dow Jones Industrial Average and other indexes clinched fresh record highs Monday on expectations of a U.S.-China trade pact. Palantir Technologies (PLTR) cleared an entry while Tesla (TSLA) gained despite a warning about Chief Executive Elon Musk. But gold stocks melted while a cluster of rare-earth stocks dropped on the stock market today. The Dow shot up 337 points, or 0.7%, and logged a second consecutive closing high. Nvidia (NVDA) fared best on the index, with a gain of 2.8%, with Microsoft (MSFT) and Apple (AAPL) also strong. Amazon.com (AMZN) gained more than 1% after a Reuters report it is looking to cut up to 30,000 corporate jobs. The Nasdaq composite led the day's rally with a 1.9% jump. Qualcomm (QCOM) was the strongest stock, soaring 11% after the company announced new AI accelerator chips. MercadoLibre (MELI) and Tesla (TSLA) also stood out with gains of more than 5% and 4%, respectively. Investors on Monday reacted to Trump administration officials saying the U.S. is making progress in trade talks with China. Meanwhile, Treasury Secretary Scott Bessent said he made progress in his hunt for the next Federal Reserve chair. Stock Market Today: IBD 50 Outperforms The S&P 500 closed up 1.2%. Top performers here included Keurig Dr Pepper (KDP) and Leaderboard Watchlist name Robinhood (HOOD). The former stock climbed 7.6% as the beverage maker raised full-year guidance, while the latter added 4.3%. Chemicals play Albemarle (ALB) was among the worst laggards, falling as much as 8.9% after Bloomberg reported it will be selling sell a majority stake in its refining catalyst business as it looks to raise $660 million. It closed down 5%. A majority of the benchmark index's sectors were in positive territory. Communication services, consumer discretionary and technology led advancers while materials and consumer staples were the worst laggards. Small caps squeezed out a tiny gain, with the Russell 2000 rising 0.3%. Growth stocks flexed their muscles though, with the Innovator IBD 50 (FFTY) exchange traded fund up 1.6%. The 10-year Treasury yield was essentially flat at 4%. Meanwhile, oil prices reversed, with West Texas intermediate futures falling 0.2% to around $61.40 per barrel. Volume has higher compared to Friday on both the Nasdaq and the New York Stock Exchange, according to preliminary data. IRobot Craters, Flashes Sell Signal Just a few years ago, iRobot (IRBT) was a stock trading for almost 200 per share. But the domestic cleaning devices stock cratered below its 50-day moving average, triggering a key sell rule, after plunging 34% on the stock market today. At session lows of 3.57, it was more than 98% below its January 2021 high of 197.40. So far in 2025 alone, it has lost more than half its value compared to where it closed in 2024. In a session in March this year, the stock tumbled 35.7%. The Roomba vacuum maker was battered after it disclosed that negotiations to find a buyer have fallen apart. "Although this review process remains active and ongoing, last week the last remaining counterparty to a potential sale transaction withdrew from the process following a lengthy period of exclusive negotiations, and we currently are not in advanced negotiations with any alternative counterparties to a potential sale or strategic transaction," the company said in a regulatory finding. Today's painful action undermines the dangers of bottom-fishing. Those following the tenets of The IBD Methodology would instead be looking for companies that boast strong profit growth and which are performing well on a technical basis. iRobot has been struggling since e-commerce giant Amazon abandoned a planned $1.7 billion acquisition in early 2024 due to regulatory scrutiny. Palantir Tops Entry; Tesla Up Despite Elon Musk Worry Palantir Technologies also made a bullish move, rallying into a buy zone above a cup-with-handle entry of 188.20. However, buying now carries additional risks as the firm is getting set to post quarterly results on Nov. 3. The stock, which holds a best-possible IBD Composite Rating of 99, is looking to build revenue gains after hitting the $1 billion milestone in sales for the first time in the second quarter. Palantir is a member of the prestigious IBD Leaderboard list of top stocks. Meanwhile, Tesla nailed down a 4.3% gain. It rallied despite the electric vehicle maker's Chair Robyn Denholm warning in a letter that the company risks losing Chief Executive Elon Musk if his new pay package is not approved. Tesla "could lose significant value" without him as it "may no longer be valued for what we aim to become," she also said. Musk's new 10-year package could be worth up to $1 trillion in stock, but depends on Tesla meeting aggressive targets. These include hitting a market capitalization of $8.5 trillion. Online shareholder votes regarding the mooted pay package for Musk must be received before midnight ET on Nov. 5. Tesla stock is offering up an early buy point of 451.68. This comes as it forms a cup-with-handle base with ideal entry point of 470.75. It holds a Composite Rating of 77, but is in the top 10% of issues in terms of price performance over the past 12 months. 3:14 p.m. ET Stock Market Today: Gold Stocks Melt Gold stocks have had a tremendous winnings so far in 2025, but have been reversing sharply off highs. And they were falling again Monday as the precious metal itself suffered a dip. Gold, one of the top-performing asset classes of the year, skidded almost 3% to around $4,025 per ounce Monday. This is well off the recent high of $4,346.70. Profit-taking and an easing of geopolitical tensions have been cited as reasons for the drop. Assets focused on the space have suffered even more painful drawdowns. The SPDR Gold Shares ETF (GLD) fell more than 2% during Monday's action. It has slipped below its 21-day exponential moving average and also lost its spot on the prestigious IBD Leaderboard list of top stocks. Nevertheless, the ETF is still holding a gain of about 52% this year. It previously cleared its 25% profit target from a 317.63 flat-base entry but this has eroded to a gain of around 16% from this level. Agnico Eagle Mines and Kinross Gold (KGC) both suffered declines of around 5% on Monday. Both stocks are currently testing support at its 50-day moving average. Triple Flag Precious Metals (TFPM) dipped just over 3%. It undercut its 50-day line in high volume, a sell signal. The latter three gold plays are members of the IBD Sector Leaders list. 1:38 p.m. ET Bessent Makes Fed Move Treasury Secretary Bessent made an important move by announcing he has whittled down his short list of candidates to become the next chair of the Federal Reserve down to five possibilities. The list is made up of current Fed Govs. Christopher Waller and Michelle Bowman, National Economic Council Director Kevin Hassett, former Fed Gov. Kevin Warsh, and BlackRock executive Rick Rieder. Bessent, who had been mooted as a potential candidate himself, is now in the midst of interviewing the candidates. He will look to issue his final list of recommended candidates to President Donald Trump after Thanksgiving. Trump said he will look to announce the replacement for current Fed Chair Jerome Powell at the end of the year. Hassett is currently seen as the front-runner, and it remains to be seen if some of the other potential candidates can win Trump's favor. Powell's term ends in May but he will be able to continue to serve as a governor until 2028. Stock Market Today: More Stocks Pass Buy Points A number of other equities were flirting with entries amid the encouraging action. Macom Technology Solutions (MTSI) is in a buy zone after moving above a cup-with-handle base with an ideal buy point of 144.15, according to MarketSurge analysis. This is an first-stage pattern for Macom, which is a bonus. It is also pulling away from its short-term and major moving averages. The stock's relative strength line is moving higher as it breaks out, which is also encouraging. All-around performance is solid, with its IBD Composite Rating coming in at 96 out of 99. Fundamental strength is a feature, with its Earnings Per Share Rating sitting at 96. However, Macom is only among the top 36% of issues in terms of price performance over the past 12 months. The company develops and makes radio, microwave and millimeter wave semiconductors. It serves areas including telecommunications, defense and data centers. Institutions have been standing pat on the stock of late, with its Accumulation/Distribution Rating sitting at C. However, 79% of shares are held by funds, which is outstanding. Chinese vacation play Atour Lifestyle (ATAT) has also moved into buy range after clearing a flat-base entry of 15.52. All-around performance is high here, with its IBD Composite Rating sitting at 96 out of 99. The stock has been on a tear so far this year, rallying nearly 49%. The stock currently holds a near-top EPS Rating of 98. Full-year earnings are expected to rise 26% both this year and in 2026, MarketSurge data shows. As if that wasn't enough, Atour Lifestyle stock is currently a member of the elite IBD Sector Leaders list. This is IBD's most stringent and powerful screen. 12:21 p.m. ET FTAI Aviation Stock, NatWest Clear Entries IBD recently raised its recommended exposure back to the 60% to 80% range amid encouraging action. This means it is important to keep track of breakouts. FTAI Aviation (FTAI) cleared a flat base with an ideal buy point of 184.44, MarketSurge analysis shows. This is an early-stage pattern for FTAI. This is a plus, as IBD research has found such bases are more likely to net higher returns for investors. The stock's relative strength line is bending higher once again after taking a breather as it formed the bulk of its base. FTAI Aviation stock is among the top 7% of securities in terms of price performance over the past 12 months. The company also has a solid Earnings Per Share Rating of 81. Earnings Risk For FTAI The company's earnings report is due after the close, which makes buying now risky. An approach highlighted by Investor's Business Daily is to use options as a strategy to reduce risk around earnings. Big Money has been loading up on FTAI stock of late, with its Accumulation/Distribution Rating coming in at B. In total, 63% of shares are held by funds. Highly rated holders include the Columbia Acorn Fund (ACRNX) and the Artisan Mid Cap Fund (ARTMX). The New York company operates through two segments: aviation leasing and aerospace products. The former leases assets such as aircraft and engines to airlines, while the latter makes, repairs, and sells engine parts and other components. Banking stock NatWest (NWG) has also moved into buy range after clearing a flat base. The ideal entry here sits at 15.52. All-around performance is very good here, with its IBD Composite Rating sitting at 96 out of 99. The British banking play has rallied more than 50% so far this year. Earnings are seen rising 133% this year before slowing to 11% growth in 2025. 10:58 a.m. ET Stock Market Today: Rare Earth Stocks Hit One group of stocks that were not benefiting from the broader stock market rally during morning trade were rare earth plays. They were hit after Treasury Secretary Scott Bessent said he expects China to delay harsh rare earth export controls on the U.S. These materials have been a constant sticking point in the ongoing trade discord between the two nations. President Donald Trump also struck a hopeful tone as he gets set to meet his Chinese counterpart Xi Jinping later this week in South Korea. "I have a lot of respect for President Xi, and we are going to come away with the deal," he told reporters on Air Force One. MP Materials (MP) fell nearly 9% and lost ground on its 50-day moving average, according to MarketSurge analysis. Critical Metals (CRML) was hit even harder, plunging nearly 18%. It sank below its 21-day moving average and is now more than 60% below its Oct. 14 high of 32.15. USA Rare Earth (USAR) also got pummeled, dropping around 13%. It is seeking support at its 50-day line and is over 50% off its own recent high of 43.98. 9:54 a.m. ET Nasdaq-100 Movers: MercadoLibre, Lululemon Inside the Nasdaq-100 index, MercadoLibre (MELI) and Lululemon Athletica (LULU) climbed 6% and 4%, respectively, making them some of the best performers at the market open. On the downside, Verisk Analytics (VRSK) and Exelon (EXC) declined nearly 1% each. 8:39 a.m. ET Broadcom, Palantir At Buy Points Broadcom jumped more than 2% premarket Monday, closing in on a cup-with-handle buy point at 363.24. And Palantir stock moved up 2.5% Monday morning, set to open above a handle entry at 188.20. 8:31 a.m. ET Nvidia, Tesla Rally Nvidia stock added 2.2% premarket Monday, on pace to extend a winning streak to three sessions. Last week, shares regained a recent 184.48 buy point after finding support at their 50-day moving average. Tesla shares rallied 1.3% in early morning trading Monday, looking to bounce back from Friday's 3.4% decline. Shares are holding near a 470.75 handle entry. Stock Market Today: U.S.-China Trade Deal Hopes Recent U.S.-China trade talks in Malaysia ended with both sides saying they reached agreement on many issues, setting the stage for President Donald Trump and China's President Xi Jinping to finalize a deal. U.S. Trade Rep. Jamieson Greer told reporters early Sunday that "we're moving forward to the final details" and "we have a really good chance of making a very comprehensive deal." Treasury Secretary Scott Bessent said Trump's threatened 100% tariff on Chinese goods is "effectively off the table." He expects China to make "substantial" soybean buys and to delay rare earth exports curbs. Trump and Xi are expected to meet Friday, Oct. 31 at the APEC summit in South Korea. Big Earnings Reports: Apple, Meta, Alphabet, Amazon Apple (AAPL), Microsoft (MSFT), Meta Platforms (META), Alphabet (GOOGL) and Amazon (AMZB) are all set to report earnings this week. Other key earnings reports include Western Digital (WDC) and Seagate Technology (STX), ServiceNow (NOW), Atlassian (TEAM) and Cloudflare (NET), along with credit card giants Mastercard (MA) and Visa (V). Stock Market Today: Fed Meeting Meanwhile, the Federal Reserve's two-day policy meeting kicks off Tuesday. The Fed is a lock to cut its key interest rate by another quarter-point on Wednesday, with the policy statement due at 2 p.m. ET. Chairman Jerome Powell's 2:30 p.m. news conference may signal whether a further rate cut on Dec. 10 is a sure bet following the September consumer price index report. Please follow Michael Larkin on X at @IBD_MLarkin for more analysis of growth stocks. Be sure to follow Scott Lehtonen on X at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today. YOU MAY ALSO LIKE
