Stocks Tuesday were mostly higher after Monday’s positive action. The Dow Jones Industrial Average, Nasdaq and S&P 500 all held above their 50-day moving averages. Big morning movers included Palantir Technologies (PLTR) and Datadog (DDOG). Both sank after earnings releases in the stock market today.
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The Dow Jones Industrial Average rose nearly 0.3%. The 30-stock index reclaimed its 50-day line Monday. The S&P 500 added 0.2%, while the Nasdaq was fractionally higher.
The Russell 2000 inched 0.3% higher. Volume rose on the Nasdaq and the New York Stock Exchange vs. the same time in Monday’s session.
Among exchange traded funds, Invesco QQQ Trust (QQQ) crept up 0.1%. But the Innovator IBD 50 ETF (FFTY) underperformed as it slid around 0.6% in the stock market today.
West Texas intermediate crude oil slid 0.5% to $78.01 a barrel. The benchmark 10-year Treasury yield edged lower to 4.44%.
Stock Market Today: Palantir Technologies Plunges
IBD 50 stock Palantir Technologies gapped down more than 14% in heavy volume, after the company reported first-quarter earnings that met expectations and topped sales views. Palantir guided for second-quarter revenue above estimates, but its full-year 2024 guidance disappointed investors. Palantir offers AI tools to government customers for intelligence gathering, counterterrorism and military purposes. The company now plans to use generative AI to spur growth in the commercial market.
Datadog gapped down more than 10% in heavy trading following the company’s first-quarter earnings report and announcement of an executive move.
The company beat adjusted earnings and sales estimates and gave 2024 revenue guidance that topped views. But it announced Amit Agarwal will step down as president at the end of 2024. The company said in the earnings release that he is expected to join Datadog’s board of directors after his departure. The stock fell sharply below its 50-day line, triggering a sell signal and is now testing its 200-day moving average.
Also in the stock market today, IBD 50 name Axon Enterprise (AXON) sank around 4% in heavy trading, even after the company reported higher-than-expected first-quarter adjusted earnings and revenue, and raised its 2024 sales guidance. Axon makes bodycam equipment, Taser stun guns and law enforcement products.
Magnificent Seven Stocks Invest In Self-Driving startup
Nvidia (NVDA) dropped more than 2%. The AI and chip leader is one of the investors in Wayve Technologies. The company raised more than $1 billion to speed up development of artificial-intelligence products for autonomous driving. In separate news, Goldman Sachs raised its price target on Nvidia stock to 1,100 from 1,000 and maintained its buy rating. Nvidia stock is in a cup base with a 974 buy point.
Another Magnificent Seven name, Microsoft (MSFT), is also an investor in the U.K.-based company. Microsoft shares edged lower in the stock market today. Shares are in a flat base with a 430.82 buy point.
Vertex (VRTX) reversed higher more than 1% after the cystic fibrosis treatment maker reported higher-than-expected first-quarter profit and revenue. The stock is in a flat base with a 448.40 buy point. It is trying to regain its 50-day line.
Disney Flashes Sell Signal
Dow Jones stock Walt Disney (DIS) gapped down more than 8% in huge volume and knifed below its 50-day line, triggering a sell signal. Shares sank from a flat base with a 123.74 buy point after Monday’s nearly 2.5% rise. The media and entertainment company reported better-than-expected fiscal second-quarter adjusted earnings but revenue came up short of forecasts.
The stock is on track for its largest percent decrease since May 11, 2023, when it fell 8.7%, according to Dow Jones Market Data. Disney stock was the biggest loser on the Dow in the stock market today.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
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