The Dow Jones Industrial Average rose Monday despite weaker-than-expected retail sales and comments from Treasury Secretary Scott Bessent, who said stock market corrections are “healthy.” Among the winners was Netflix, which popped following an upgrade, but Tesla knifed lower on the stock market today.
Stocks sought to build on Friday’s rebound amid recent sharp declines. The Dow industrials were shining as the index rose more than 200 points or 0.5%. Walmart outperformed as it popped more than 2%. Nvidia was the worst laggard though, falling more than 1%.
The Nasdaq composite was the weakest among the major indexes, dipping 0.1%. The tech-heavy index remains down nearly 8% so far this year. Lululemon Athletica impressed here as it climbed more than 3%.
Tesla was one of the worst laggards as it fell around 4%. The electric-vehicle play sits below its major moving averages and is down more than 40% year to date.
Energy Shines
The benchmark S&P 500 rose 0.3% and is gaining ground on its 200-day moving average. S&P 500 sectors were mostly positive on the stock market today. Energy and real estate were faring best while only consumer discretionary fell.
Intel was a standout as it vaulted more than 7%. Fellow chip stock Advanced Micro Devices (AMD) was also strong as it gained nearly 5%.
Small caps came off early highs on the stock market today. The Russell 2000 index moved up 0.4% but remains nearly 7% below its 200-day moving average.
Growth stocks reversed higher, with the Innovator IBD 50 exchange-traded fund up 0.5%. Still, the fund remains down more than 4% in 2025.
Volume was mixed on the New York Stock Exchange and the Nasdaq compared with the same time on Friday.
Retail Sales Data Weaker Than Expected
Stocks moved higher after the Commerce Department reported that retail sales rose an adjusted 0.2% in February compared with January.
This was below the 0.6% reading expected by economists. However, it also came in better than the prior month’s downwardly revised decline of 1.2%.
Excluding autos, sales rose 0.3% and met expectations. In addition, the so-called control group, which strips out non-core sectors, was up 1%, which was better than expected.
Softer retail activity will help soothe worries over inflation. The Federal Open Market Committee is meeting on Tuesday and Wednesday. Central bankers are almost certain to hold interest rates steady. However, post-meeting comments from Federal Reserve Chairman Jerome Powell could give more insights into the future path of monetary policy.
Bessent: ‘Corrections Are Healthy’
The market was also digesting more comments from Treasury Secretary Bessent over the weekend.
He told NBC that “corrections are healthy. They’re normal,” though investors remained worried about current market conditions. Still, Bessent warned how ‘euphoric markets’ can lead to a ‘financial crisis,’ citing 2008.
The Trump administration economic policy point man also refused to rule out a recession, saying “there are no guarantees.”
But there was a sliver of comfort for investors to take from the former hedge fund manager during the “Meet the Press” interview.
“Over the long term, if we put good tax policy in place, deregulation, and energy security, the markets will do great,” Bessent said.
Netflix Pops, Retakes Key Benchmark
Streaming play Netflix was making gains in early action following an analyst upgrade. The stock got a boost after Moffett Nathanson raised it to a buy rating from neutral. It also upped its price target on the company to 1,100 from 850.
Analyst Robert Fishman believes the firm will be able to better monetize its user base going forward, which will to “unlock greater profits in the years ahead.”
Netflix stock rose nearly 4% on the stock market today and was one of the best performers on the S&P 500 as well as the Nasdaq. The stock has surged back above its 50-day moving average in high volume, MarketSurge analysis shows
While this could be used as an early entry for aggressive investors, current market conditions would make this a risky time to buy. Both earnings and price performance are excellent though, which is reflected in its best-possible IBD Composite Rating of 99.
