The Dow Jones Industrial Average and other major indexes pared losses but still finished lower Friday, feeling the effect of Adobe‘s (ADBE) earnings-induced troubles. The Nasdaq tried to recover but appeared to be headed toward territory it hasn’t seen since last fall. Meanwhile, Nvidia gave back gains and slipped at the closing bell, while Tesla (TSLA) stemmed its fall on the stock market today.
X
The Dow ended 0.5% lower on Friday while the S&P 500 fell 0.7%. Among the S&P sectors, energy and utilities gained while technology and communication services lagged.
The Nasdaq finished 1% lower. The tech-heavy index had its first back-to-back weekly losses since late October.
After a steep decline on Thursday, small caps fared slightly better. The Russell 2000 gained 0.4%. Also, options expired Friday.
In economic news, the Empire State Manufacturing Index’s measure of manufacturing activity in March contracted to -20.9. Economists expected a fall to -8. Further, the University of Michigan’s consumer sentiment survey came in at 76.5 for March. The survey was expected to come in at 77.3, according to Econoday.
Also on the economic front, investors await Federal Reserve Chair Jerome Powell’s remarks after the Fed’s policy announcement Wednesday. The consensus sentiment is that interest rates are expected to stay the same.
Volume on the New York Stock Exchange was lower but higher on the Nasdaq compared with the same time on Thursday. Breadth improved as advancers outnumbered decliners on both exchanges.
The Innovator IBD 50 (FFTY) exchange traded fund bucked the bearish tide and rose 0.3% on the stock market today. Further, the yield on the benchmark 10-year Treasury note ticked up slightly to 4.31%.
Dow Jones Stocks
Nike (NKE) was off 0.6% as it headed into earnings next week. Shares are also in a downtrend as they face resistance at the 50-day moving average, according to IBD MarketSurge. The maker of shoes and sports apparel became the latest short position on IBD SwingTrader.
Tech stocks in the Dow sold off while Boeing (BA), JPMorgan Chase (JPM), Merck (MRK) and Caterpillar (CAT) all finished higher.
Stock Market Today
Adobe fell nearly 14% after its results, dragging down much of the market with it. Shares had fallen below the 50-day moving average ahead of earnings, then dived below the 200-day line on Friday.
Adobe beat Wall Street’s targets for its fiscal first quarter ended March 1, but offered a lackluster outlook. At least 15 Wall Street analysts cut their price targets on Adobe stock after the company released the results late Thursday.
GigaCloud Technology (GCT) soared more than 23% after reporting a strong quarter and upbeat outlook. The IBD 50 stock is extended.
Among the “Magnificent Seven” stocks, Nvidia (NVDA) was up most of the day but ultimately failed to break a two-day losing streak on the stock market today. The AI chip leader will hold the GTC 2024 conference for artificial intelligence developers next week. Nvidia is a holding on the Investors Business Daily IBD Leaderboard model portfolio. Shares lost 0.1%.
Tesla managed to keep from sinking even lower. The electric-vehicle giant gained 0.7% but remains in a downtrend.
Market Rally Pauses Ahead Of Fed, Two Big AI Events
On The Earnings Deck
In computer tech services, Accenture (ACN) has formed a three-weeks-tight pattern as it tests the 50-day moving average ahead of earnings next week. In retail, apparel maker Lululemon (LULU) is in a flat base with an early entry at 474.17, according to IBD MarketSurge. The company reports its fourth-quarter results on Thursday.
Elsewhere, Darden Restaurants (DRI) offers a similar pattern with an entry at 176.84 ahead of third-quarter results next week. Homebuilder stock KB Home (KBH) is in a buy zone from a flat base’s buy point of 64. First-quarter earnings are due Wednesday.
Enterprise software stock Smartsheet (SMAR) fell nearly 7% after the company’s sales outlook for the current quarter suggested further deceleration. Sales have been slowing over the past seven quarters.
Outside the Dow Jones index, mixed results and a weak outlook sent Jabil (JBL) plummeting more than 16%. Shares have gapped down below the 50-day moving average. Specialty retail stock Ulta Beauty (ULTA) also fell on a soft outlook.
Finally, an approval from the FDA for its drug to treat a type of fatty liver disease helped Madrigal Pharmaceuticals (MDGL). Shares of the drug stock surged 11% on the stock market today.
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