Nvidia Stock Roars Back, Leads S&P 500, As Chips, Steel Plays Rebound

Nvidia (NVDA), Micron Technology (MU), Steel Dynamics (STLD), Teledyne Technologies (TDY) and Monolithic Power (MPWR) are the top S&P 500 index gainers on the stock market today.

The S&P 500 index rose 0.6% on Monday. The Nasdaq jumped 1.05%, just reclaiming its 50-day.

NVDA stock ran up 7.1% to 437.53, retaking the 50-day line after tumbling below that key level last week. Morgan Stanley said Monday that this was a good time to buy Nvidia stock. Investors could use a break of a short-term downtrend, roughly coinciding with the 21-day line, as an early entry. But Nvidia earnings are due Aug. 23.

Nvidia stock is on IBD Leaderboard.

MU stock jumped 6.1% to 68.25, rebounding back above the 50-day line. The memory-chip giant has a handle on an awkward-looking double-bottom base, offering a 72.34 buy point. There could be an entry from breaking the downtrend of Micron stock’s handle.

STLD stock popped 5.2% to 107.65, moving back above its 50-day and 200-day lines. Investors could view that as an aggressive entry into Steel Dynamics from a deep, five-month consolidation with a 136.46 buy point. Or, they could see it as a trendline break within a six-week flat base within that larger consolidation. The flat-base buy point is 111.71.

STLD stock rallied after U.S. Steel (X) said it’s mulling strategic alternatives after receiving several unsolicited bids, including a rejected one from rival Cleveland-Cliffs (CLF). Diversified industrial firm Esmark on Monday afternoon bid $35 a share for the much-larger U.S. Steel, according to Monday afternoon reports. U.S. Steel stock gapped up 37%, hitting a 15-month high intraday. CLF stock vaulted 8.8%. Nucor (NUE), another U.S. steelmaker, rose 3.3%.

TDY stock leapt 5% to 402.50, retaking its 50-day line but still below the 200-day. Teledyne stock is trying to break a choppy four-month downtrend. Goldman Sachs upgraded the industrial conglomerate to buy, raising its price target to 495 from 423.

MPWR stock climbed 4.5% to 524.66, moving toward its 50-day line after hitting a two-month intraday. A decisive retaking of the 50-day line would also involve breaking a trendline for the chipmaker. Those would offer multiple reasons for an early entry as Monolithic stock works on an emerging consolidation.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.


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