The major indexes retreated Tuesday morning, with the Nasdaq, Dow Jones Industrial Average and S&P 500 down modestly. Tesla (TSLA) weighed the Nasdaq while Eli Lilly (LLY) was a leader in the stock market today.
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The Dow Jones index dipped 0.4%, more than 200 points at one point, and remained below its 21-day exponential moving average after bumping up to it Monday. The S&P 500 shed nearly 0.2%, while the Nasdaq also faded 0.2%. The S&P 500 and Nasdaq are testing resistance at their 50-day moving averages.
The small-cap Russell 2000 fared worse than the major indexes and shaved off nearly 0.7% in the stock market today. Volume fell on the Nasdaq and rose on the New York Stock Exchange vs. the same time in Monday’s session.
Among exchange traded funds, Invesco QQQ Trust (QQQ) edged lower 0.2%. The Innovator IBD 50 ETF (FFTY) fell 0.6% in the stock market today.
West Texas intermediate crude oil fell 1.7% to $81.20 a barrel, causing the energy sector to fall 1.1%.
The benchmark 10-year Treasury yield inched higher to 4.65% after the employment cost index rose 1.2% in the first quarter, to the fastest pace in a year and a half.
This follows the Treasury Department’s announcement on Monday afternoon it will need to borrow $41 billion more in the current quarter than initially expected.
In addition, the Federal Reserve begins a closely watched two-day meeting on Fed chief Jerome Powell will comment Wednesday afternoon. Investors will be listening for any signals on when rate cuts may begin.
Stock Market Today: Tesla Drops After Monday’s Rally
Tesla stock gave back more than 3% after soaring 15.3% Monday. The company announced it is letting go two executives and its entire supercharge team, as reported by The Information on Tuesday, citing an internal email.
MicroStrategy (MSTR) gapped down more than 10% in the stock market today after the company missed first-quarter sales estimates and reported a loss.
Eli Lilly stock surged 7% after the drugmaker topped first-quarter adjusted earnings estimates but missed on sales. Lilly raised its full-year adjusted earnings and revenue guidance. Lilly stock reclaimed its 50-day moving average as it forms a flat base with an 800.78 buy point.
Lilly’s top drugs include its weight-loss drug Zepbound, which is also used as a treatment for Type 2 diabetes and sold under the name Mounjaro. Lilly stock was a big gainer on the S&P 500 on Tuesday.
Amazon.com (AMZN) was almost flat ahead of its earnings report due out after the market close today.
Dow Stocks Moving: 3M Rallies, McDonald’s Sinks
Dow Jones stock 3M (MMM) gapped up and is in the 5% buy zone of a cup-with-handle base buy point of 91.29, on the MarketSurge weekly chart. 3M also topped an alternative entry at 95.67.
The company beat first-quarter adjusted profit and sales projections and gave full-year 2024 revenue guidance reflecting the spinoff of its Solventum (SOLV) health care unit. 3M makes a variety of industrial, consumer and health care products including Post-its. 3M was the biggest gainer on the Dow Jones Tuesday.
Another Dow Name, McDonald’s (MCD), erased early losses. The fast-food giant reported a miss on its first-quarter profit estimates but higher sales than expected. In addition, same-store sales growth also missed views. The stock fell further below its 21-day line but continues to work on a flat base.
Warren Buffett stock Coca-Cola (KO) was nearly flat after the beverage company reported higher-than-expected first-quarter earnings and revenue. Shares are in a buy range reaching to 64.70 from a flat-base buy point of 61.62.
Big Stock Movers: Chip Stocks Show Mixed Results
NXP Semiconductors (NXPI) gapped up more than 4% in heavy volume and broke out of a double-bottom base with a 251.96 buy point. The Netherlands-based chipmaker reported better-than-expected first quarter adjusted earnings and sales and gave second-quarter profit and revenue guidance in line with analysts’ estimates.
Meanwhile, chip designer Rambus (RMBS) sank nearly 3% even after the company exceeded first-quarter EPS and sales forecasts. The stock tested its 200-day line in an irregular base with a 76.38 buy point.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
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