Dow Jones Soars on McCarthy’s Debt Ceiling Warning; An activist investor is targeting this growth stock

The Dow Jones Industrial Average rose as House Speaker Kevin McCarthy issued a debt ceiling warning to President Joe Biden. Shake Shack (SHAK) rose on the back of an active investor move during Meta platforms (META) Featured on Analyst upgrade. Microsoft (MSFT) after the regulator boosted its takeover bid Activision Blizzard (ATVI).


Meanwhile, three of the stocks managed to outpace their buy points despite the mixed move. hiko (it’s me), HSBC (HSBC) and CPKC (CP) All entries tested.

Treasury yields were mixed. The 10-year yield increased by four basis points to 3.50% while the 2-year yield decreased slightly to 4%. The yield curve remains inverted.

McCarthy throws down the debt ceiling gauntlet

McCarthy slapped Biden with the proverbial glove before giving a warning about the debt ceiling. He is scheduled to meet with the president on Tuesday and give every indication that he wants a quick solution to the potential crisis.

McCarthy said the two sides remain “far apart”. He accused Biden and his aides of “not talking about anything serious” and claimed they were more interested in making it look like they were engaged in talks.

“I think we should have a deal by the end of this week,” McCarthy said, adding a sense of urgency to the proceedings.

The Speaker indicated earlier that he wanted a full deal rather than a short-term deal to add more negotiating time to the clock.

It comes after Biden said on Sunday he was “hopeful” a deal would be struck to avoid a possible default.

The Nasdaq shines as small caps move

The Nasdaq did better than the other major indices, closing up 0.7%. Chinese e-commerce play (JD) was a good performer here, up 6.7%.

The S&P 500 posted a less impressive gain of 0.3%. Western Digital (WDC) caught the eye here as it rose 11.2%.

S&P 500 sectors closed mixed. Materials, Finance and Technology were the strongest performers. The defensive facilities area lagged further while healthcare also suffered.

However, smaller companies fared the best, with the Russell 2000 index up 1.2%. Growth stocks pulled higher, with the Innovator IBD 50 ETF (FFTY) closing up 0.6%.

Dow Jones today: Microsoft stock up after deal boost

The Dow Jones lagged behind the other major indices but edged higher into the close. It ended the day up 48 points, or 0.1%.

Intel (INTC) was the best performer, up 2.9%. According to MarketSmith’s analysis, the chip giant is holding below the 50-day moving average, but is closing in on the line.

American Express (AXP) f Walgreens Boots Alliance CRM also performed well in the Dow today with each gaining 1.4%.

Microsoft gained 0.2% after Activision Blizzard’s takeover bid got a boost.

The European Union approved the discussed $69 billion deal. However, UK regulators blocked the deal due to competition concerns.

The US Federal Trade Commission also sued Microsoft to block the deal. MSFT extended after entering a flat base at 276.86.

Activision Blizzard ended the session up 1.2%.

Growth stocks are jolted by activist interest

Burger Shake Shack rose after it emerged that activist investor Engaged Capital had its sights set on the company. The activist plans a proxy battle for three board seats, according to the Wall Street Journal.

Engaged, which has a roughly 7% stake in the company, believes it has found ways to double Shake Shack’s profitability in two years. She also wants her to get rid of her overlapping board.

However, the activist company and its management appear to be at odds, which leads to a potential fight.

“Our shares are up more than 50% since the start of the year, and we are well-positioned to continue to enhance shareholder value,” Shake Shack said in a statement.

The stock extended beyond 61.49 buy points. SHAK ended the day up 7.8% and is now up nearly 70% for the year.

Pops stock META after upgrade

Leaderboard arrow Meta platforms (META) ended the day comfortably higher after posting an upgrade.

It was upgraded from Hold to Buy by Loop Capital, which also raised its price target to 320 from 220.

The company sees a brighter revenue picture for the social media giant. It also said the stock had been “meaningfully realigned this year on the basis of expense reductions.”

Meta stock ended the day up 2.2%. It extended beyond 197.26 buying points.

The company previously guided revenue between $29.5 billion and $32 billion in the second quarter. The midpoint was completely void of analysts’ opinions of $29.5 billion.

Earlier this year, CEO Mark Zuckerberg said in a statement that 2023 would be the company’s “year of efficiency.”

Outside Dow Jones: Introducing Biotechnology Test Runs

Three of the stocks attempted a breakout.

Heico jumped after news of its acquisition of private jet parts maker Wencor Group for about $2 billion. Heico stock breached above 177.65 buying points for a flat base on high volumes.

Banking play HSBC has managed to remove the insert of a cup with a handle of 38.54. While overall performance is strong, with an IBD Composite rating of 94 out of 99, buying a bank stock would be a brave move for now. However, HSBC is based in the United Kingdom.

CPCK Railways is trading around a key flat long entry at 83.06 on the weekly chart. Earnings are the main force here. CP stock has an EPS rating of 93 out of 99.

chip stock in innovation (ONTO) He also broke out, this time from the base of a teacup. The entry point here is 89.85. Its strong all-around performance earned it a composite rating of 87 out of 99.

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