Stocks were down across the board to start a new month and a fresh quarter Tuesday, as the Nasdaq and S&P 500 dropped more than 1% in morning trades and the Dow Jones Industrial Average slipped. Tesla (TSLA) pulled back on the stock market today as its quarterly delivery numbers loom.
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The Nasdaq composite took the brunt of the losses among the three major indexes. The tech-heavy index was down 1.7% in recent action, or more than 300 points.
The S&P 500 pulled back 1.2% at one point but pared those losses down to right at 1%. It came a day after the benchmark index set a record high.
Also coming off an a record on Monday was the Dow Jones index, which took a break after a three-day climb and sank 0.6%. Dow Jones stocks fell more than 200 points in recent trades.
Small-caps on the Russell 2000 felt the sharpest pain, dropping 1.8%. Volume was lower on the New York Stock Exchange and higher on the Nasdaq vs. the same time Monday.
The 10-year Treasury yield shed nine basis points to 3.72%. West Texas Intermediate crude oil rose 3.2% to near $70.35 a barrel.
Economic News: Dockworker Strike Hits Shippers
Around 45,000 dockworkers went on strike at midnight Tuesday at East and Southern coast ports, affecting more than half of all American imports and exports. The strike was over wages and benefits.
According to The Wall Street Journal, big retailers said they can withstand the strike because they received merchandise early in the season and utilized West Coasts ports in anticipation of a job action. But leaders warned a “walkout lasting a week or longer would push up shipping costs and might trigger product shortages.”
Shipping companies felt the effects on the stock market today. ZIM Integrated Shipping (ZIM) tumbled around 7%, while FedEx (FDX) sank 1.4% and United Parcel Service (UPS) retreated 2.6%.
Dow Jones component Home Depot (HD) pulled back 0.8% while Best Buy (BBY) slid 2.1% on the stock market today. Both are extended from buy zones.
In other economic news, the final September Purchasing Managers’ Manufacturing Index reading, known as PMI, came in at 47.3 vs. the 47.0 expected but was lower than August’s 47.9. A reading below 50 indicates contraction. New orders decreased for the third straight month and saw the steepest drop since June 2023, according to S&P Global.
The September Institute for Supply Management manufacturing index held steady with August’s 47.2 reading. The number is calculated from a monthly survey of purchasing managers at roughly 300 manufacturing firms nationwide and shows overall factory sector trends.
The August Labor Department’s Job Openings and Labor Turnover Survey, known as JOLTS. showed that job openings increased to 8.04 million vs. the 7.7 million expected and topped the 7.673 million in July. The trend over the last few months had shown a cooling in the job market.
Stock Market Today: Magnificent Seven Movers
Magnificent Seven stock Tesla (TSLA) fell as much as 3.4% ahead of its third-quarter delivery numbers, expected to be released early Wednesday.
Analyst estimates show Tesla global deliveries totaling 462,000 units, up 6% vs. the year-ago quarter, according to FactSet. Tesla is building the right side of a cup base with a 271 buy point.
Fellow Mag 7 stock Alphabet (GOOGL) reversed and dipped 0.3% after early gains. Pivotal Research initiated coverage on the Google-parent stock with a buy rating and a 215 price target.
Shares are in a base resembling a double-bottom with an official buy point of 191.75, but an early entry can be seen at 168.64. Shares reclaimed their 50-day moving average Friday.
Other Stock Movers: McCormick Spices Things Up
Acuity Brands (AYI) jumped more than 5% in huge volume following the company’s higher-than-expected fiscal fourth-quarter adjusted profit and revenue. Shares are well above the buy zone of a cup-with-handle base with a 256.64 buy point. Shares reached a new high on the stock market today before fading.
McCormick (MKC) notched a 0.7% gain following the spice company’s beat on fiscal third-quarter adjusted earnings and sales. Management also raised its fiscal 2024 profit outlook. Shares are in the buy zone of a cup-with-handle base with a 79.37 buy point.
Anheuser-Busch InBev (BUD) climbed 1% and is in the 5% buy zone up to 68.46 of a cup-with-handle base with a 65.20 buy point. Shares climbed after Citigroup upgraded the beverage stock to buy from neutral.
CVS Health (CVS) added another 1.8% on news the struggling drugstore giant is eyeing strategic options, including a company breakup. CVS stock has lost 21% so far this year.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
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