Losses deepened for Dow Jones stocks and other indexes in midday action Tuesday amid iPhone woes for Apple and a slew of economic data. Meanwhile, Cathie Wood got rid of some Coinbase shares and bitcoin reversed course. And high fliers Nvidia and Super Micro Computer sank on the stock market today.
X
Dow Jones stocks fell 0.6% in midday trades as blue chips struggled for the second straight session. The index’s Feb. 23 high of 39,282 remains elusive.
The S&P 500 fell 0.8% on the stock market today as defensive plays rose. Among the 11 sectors on the benchmark index, utilities and consumer staples were higher while technology and communication services fell. The broader index remained comfortably above the 5,000 level however.
Further, the Nasdaq continued to languish lower, falling a steep 1.5% after closing 0.4% lower Monday. Small caps on the Russell 2000 tripped and fell 0.6% after hitting a new high on Monday.
Volume on the New York Stock Exchange was lower, but climbed higher on the Nasdaq compared with the same time Monday. Advancers beat decliners by a slim margin on the NYSE. But they lagged on the Nasdaq by nearly 5 to 3.
The yield on the benchmark 10-year Treasury note fell 7 basis points to 4.15%. And the Innovator IBD 50 (FFTY) exchange traded fund tumbled 4% as several growth stocks sold off.
Stock Market Today: Mixed Economic Data
In economic news, the S&P Global Purchasing Managers’ Index for February showed a reading of 52.5 versus views of 51.4. Factory orders in January fell 3.6% but were expected to fall by 3%, according to Econoday.
Also, the monthly survey by the Institute of Supply Management for February came in at 52.6, just below views of 53.
Later this week, Federal Reserve Chairman Jerome Powell is due to give testimony before Congress. Powell is expected to appear before the House Financial Services Committee on Wednesday and the Senate Banking, Housing and Urban Affairs panel on Thursday.
Dow Jones Stocks
Shares of Apple (AAPL) fell on reports of a steep drop in iPhone sales in 2024 in China. Counterpoint Research found that Apple’s China’s smartphone sales have fallen 24% in 2024 from the prior year amid fierce competition.
But according to the research firm, the comparison with an “abnormally high” sales record in January 2023 may be part of the reason. Apple stock tumbled 2.6%, undercutting its base on the stock market today.
Shares of IBM (IBM) ticked marginally closer to a buy point of 196.90 from a flat base, according to IBD MarketSurge. Financial and industrial stocks gained in the Dow while tech leaders fell.
Cathie Wood Sells Coinbase, Bitcoin Reverses
Famed investor Cathie Wood’s Ark Innovation ETF (ARKK) sold more than $30 million in Coinbase (COIN) stock, according to the company’s disclosures. Coinbase soared 11% on Monday but lost 2.7% Tuesday.
Meanwhile, bitcoin continued to eye higher levels and briefly topped the $69,000 mark early Tuesday, but reversed in recent action. It was down 4% near the $64,500 level, according to CoinDesk.
Stock Market Today: Who’s On The Move
Nvidia (NVDA) made up some early losses but remained 0.6% lower after a strong rally on Monday. Super Micro Computer (SMCI) pulled back more than 5% and was holding just above the 1,000 level.
Earnings movers included Target (TGT) which gapped up more than 11% after both sales and earnings beat analyst expectations. Shares are building a cup base with a buy point of 181.70.
Drone maker AeroVironment (AVAV) also gapped up, soaring 29% in recent trades. Shares broke out from an entry at 143.99 and muscled through a buy zone Tuesday after the company reported an earnings beat late Monday.
Elsewhere, GitLab (GTLB) plummeted more than 19% off its results. Shares dived below the 50-day moving average and triggered a sell signal. GTLB was the worst offender in the IBD 50.
Duolingo (DUOL) plunged more than 9%, erasing nearly the entirety of an earnings gap up. ACM Research (ACMR) also suffered a steep fall of more than 9%. Gainers in the IBD 50 included financial and health care stocks.
Finally, Tesla (TSLA) rival Nio (NIO) gave up some early gains and traded 2% higher after its report. Tesla stock lost 4% on the stock market today. IBD MarketSurge shows signs of a persistent downtrend below the 50-day line for the electric-vehicle leader.
Please follow VRamakrishnan on X/Twitter for more news on the stock market today.
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