April Webinar RegistrationApril Webinar Registration


Stocks Pare Gains But Whole Foods Soars; CAT Lifts Dow; Where's Trump Tax Plan?

X Stocks pared gains sharply Monday ahead of Fed Chair Janet Yellen's speech and as President Trump went back to the drawing board for a tax reform plan.

The S&P 500 and Nasdaq composite each finished less than 0.1% higher, while the Dow Jones industrial average was basically flat. Small caps outperformed, with the Russell 2000 gaining 0.2%. Volume was mixed, lower on the NYSE but slightly higher on the Nasdaq, according to preliminary figures.

Caterpillar (CAT), up nearly 2% in below-average trade, led the Dow in the stock market today. Shares continue to build the right side of a flat base and are slightly below a 99.56 buy point.

Automakers, truckers and oil drillers were among the day's top gainers. Tesla (TSLA) popped 3% to a new high, driving out of buy range from a 287.49 entry. Piper Jaffray upgraded the electric carmaker to overweight from neutral and boosted its price target to 368 from 223.

Knight Transportation (KNX) and Swift Transportation (SWFT) gapped up and soared 13% and 24%, respectively, in heavy turnover. Both stocks jumped back above their 50-day lines. The two big U.S. truckers agreed to merge in a deal worth around $6 billion.

On the Dow, Chevron (CVX) and Exxon (XOM) rose about 0.5% each as West Texas intermediate crude futures surged 1.5% to above $53 a barrel. Steel, fiber optic and bank stocks lagged.

Whole Foods Market (WFM) rocketed 10% to an eight-month high in hearty volume. Activist investor Jana Partners took a nearly 9% stake in the organic and natural foods supermarket chain and is pushing for a turnaround, according to an SEC filing.

In the IBD 50, BioTelemetry (BEAT) rallied 9% in active turnover. Shares are well-extended from a 24.20 flat-base entry and subsequent pullbacks to the 10-week line. The cardiac monitoring services provider announced an agreement to buy Swiss rival LifeWatch for about $257 million.

IBD 50 stocks Momo (MOMO) and Alibaba Group (BABA) also scored gains. Chinese social network Momo soared 7% to a record high in busy trade, while online retail giant Alibaba added 2% to a new high. Alibaba is extended from a 104.67 buy is offering an alternate entry at 110.55.

The Job Openings and Labor Turnover Survey for February will be released early Tuesday, as well as the National Federation of Independent Business' small business optimism index for March. The Minneapolis Fed's Neel Kashkari is also slated to speak.

Yellen was making a speech after the market close on the economy. The sudden failure of the ObamaCare repeal bid gave Trump a chance to pivot to tax cuts and infrastructure spending, but Wall Street is concerned about the lack of clear direction from the White House.

RELATED:

Momo Is On Fire, Thanks To The Kindness Of Strangers

Momo, Alibaba, JD.com Lead China Internet Stocks Up

Stocks Seek Direction As Trump Starts Over On Tax Reform