The Dow Jones Industrial Average tumbled Monday amid spiking yields even after key index component Goldman Sachs (GS) beat views. Meanwhile, Tesla (TSLA) fell after Chief Executive Elon Musk said massive job cuts are coming, as Trump Media & Technology (DJT) also sank. And Apple (AAPL) and Nvidia (NVDA) each fell on the stock market today despite bullish Wall Street calls.
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Also, a trio of noteworthy stocks dug in near entries: KLA (KLAC), Lam Research (LRCX) and Heico (HEI).
Stocks initially moved higher after Israel successfully repelled a strike from Iran over the weekend. Israeli Defense Forces chief of staff Herzi Halevi said Monday the attack “shall be met with a response.” This appeared to stoke investor fears of more escalation inside the Middle East.
In economic news, U.S. retail sales were stronger than expected. March retail sales rose 0.7% overall compared with expectations for a 0.3% increase. They were up 1% excluding autos and gas, also above views. February’s overall gain was revised as much as 0.9%.
“While the strong sales growth is a wonderful sign for economic growth inside the quarter, the surge in consumer spending could contribute to high consumer prices and cause additional inflation,” Commonwealth Financial Network senior investment strategist Sam Millette said in a note to clients. “Bond yields rose immediately following the discharge due to rising concerns off a possible no-landing, no-rate-cut scenario.”
Stock Market Today: Nasdaq, Small Caps Mauled
Early gains evaporated into losses since the Nasdaq composite tumbled 1.8%. Trade Desk (TTD) and Atlassian (TEAM) were amongst the numerous laggards. The previous stock fell 6.2% while Atlassian dropped 7.1%.
The benchmark S&P 500 also saw gains melt away since it fell 1.2%. Bucking the tide was regional bank M&T Bank (MTB), which popped greater than 4.7% despite an earnings miss. The stock is nearing a 148.23 flat-base entry, MarketSurge evaluation shows.
The S&P 500 sectors were all negative. Technology and real estate got the worst spanking by the bears. Health care and consumer staples, defensive areas, held up best on the stock market today
Small caps reversed lower, with the Russell 2000 skidding 1.4%. Growth stocks also got mauled, with the Innovator IBD 50 ETF (FFTY) falling 2.1%. Breadth was weak, with decliners leading advancers by greater than 5-to-1 on the Recent York Stock Exchange and in excess of 3-to-1 on the Nasdaq.
Yields rallied strongly again after Friday’s flight to safety. The ten-year Treasury note soared 12 basis points to 4.61% while the 30-year jumped 13 basis points to 4.73%. The five-year yield popped 9 basis points to 4.63% while the two-year climbed 3 basis points to 4.92%.
One other Ugly Market Reversal; Tesla Dives On ‘Dark Day’
Dow Jones Today: Salesforce Stock Stumbles
A bear attack saw early gains disappear Monday since the Dow Jones reversed and ended up 248 points lower. This equates to a 0.7% decline. At session highs the blue chip index had surged greater than 400 points.
Goldman Sachs stock was the right performer, rising 2.9% after the banker reported first-quarter earnings that were well above Wall Street views. Strength in its trading and investment banking businesses fueled the beat.
Intel (INTC) and UnitedHealth (UNH) also shined. Intel gained 1.7% while UnitedHealth popped 1.5%.
Salesforce (CRM) was the worst performer on the Dow Jones index and the S&P 500 Monday since it tumbled 7.3%. The stock had its worst day since Dec. 5, 2022, based on Dow Jones Market Data.
Salesforce is in advanced talks to build up Informatica (INFA), the Wall Street Journal reported.
Stock Market Today: Donald Trump Stock Dives On This
The rocky ride continues for Trump Media & Technology investors. On Monday, shares plunged one other 18.4% as the company said it planned to issue more stock.
While it will not be unusual for SPAC stocks, the addition of 21.5 million shares will put greater than 15% in additional float within the marketplace. Such dilution isn’t an answer to win over shareholders.
Those who bought the Donald Trump stock at recent highs are nursing painful losses. Trump Media stock is now down greater than 66% from the stock’s 2024 high, which it touched on March 26.
Individuals who held on after purchasing Trump Media at its all-time high of 175 — reached in October 2021 when it was still Digital World Acquisition — have lost nearly 85% of their money.
The Truth Social parent can be struggling on a technical basis. Monday’s move means it now sits about 39% below the essential thing 50-day moving average, MarketSurge evaluation shows. It could soon test the 200-day line besides.
As if that wasn’t enough, Trump’s hush-money trial began in Recent York Monday. That’s the primary time that a U.S. president has faced a criminal trial.
Cathie Wood Buys Plunging Stock
Warren Buffett once said that investors should “be fearful when others are greedy and to be greedy only when others are fearful.” That was definitely the case with ARK Invest Chief Executive Cathie Wood, who used Friday’s sharp drawdown to snap up plunging stocks.
Her firm, where she also serves as chief investment officer, snapped up greater than 308,000 shares in Recursion Pharmaceuticals (RXRX) for the ARK Innovation (ARKK) exchange traded fund on Friday. It currently sits nearly 51% below its Feb. 27 high of 15.74 and has undercut the 200-day line. Investor’s Business Daily doesn’t recommend buying issues priced below 10 or in downtrends.
The fund also bought nearly 40,000 Roku (ROKU) shares on Friday for the ARK Innovation Fund.
Roku stock is currently stuck below its 50-day and 200-day moving averages, MarketSurge evaluation shows. On the stock market today, shares sit nearly 46% off their recent high of 108.84 reached Dec. 14.
Other moves made by the swashbuckling Wood included purchases of Teledoc Health (TDOC) and 10X Genomics (TXG).
Attempting to catch a falling knife could also be tempting, but often leaves investors nursing losses. IBD recommends buying stocks with strong earnings and price performance. Seek for leaders in strong industries that are showing superior earnings growth and sales. The IBD 50 is a wealthy hunting ground for such issues.
Stock Market Today: Elon Musk Wields Ax On Tesla
Tesla stock tumbled 5.6% amid news it’s attempting to ax greater than 10% of its global workforce since it chases growth. It lost more ground on its 50-day moving average, based on MarketSurge evaluation.
Musk said in a leaked memo that the massive cuts are obligatory due to “duplication of roles and job functions.” In line with the firm’s annual report, it had 140,473 employees as of December 2023.
“There’s nothing I hate more, nevertheless it must be done,” Musk said “This may increasingly enable us to be lean, progressive and hungry for the next growth phase cycle.”
Wedbush analyst Dan Ives, who rates the stock outperform with a 300 goal, said it was a “one other dark day for Tesla.” He was concerned in regards to the departure of “key” executives Drew Baglino and Rohan Patel.
“Baglino is an absolute gut punch loss in our view as he was instrumental inside the Powertrain and Energy initiatives at Tesla and was viewed by many as key to the Model 2 initiative over the next few years,” Ives said.
A reported halt of Cybertruck deliveries can have also weighed on Tesla stock. Shares have plunged roughly a third thus far in 2024.
Magnificent Seven: Apple Takes One other Hit
The remaining of the so-called Magnificent Seven ended lower on the stock market today.
Apple lost 2.2%. This was despite Morgan Stanley reiterating an obese rating on shares. Apple stock lost ground on its 50-day line, which is acting as an area of resistance.
A Dow Jones component, Apple was hit after iPhone shipments fell 9.6% inside the January-to-March period vs. a yr earlier, based on IDC estimates released Sunday.
Meta Platforms (META) reversed lower since it fell 2.3%. Microsoft (MSFT) also dipped, falling 2% amid the tech rout. It’s now testing the 50-day line.
Leaderboard stock Nvidia saw early gains fade and closed 2.5% lower. This was despite Citi issuing a “positive catalyst watch” on Nvidia stock and saying investors should purchase on any weakness.
Amazon.com (AMZN) lost 1.4% while Google-parent Alphabet (GOOGL) dipped 1.8%.
Outside Dow Jones: Three Stocks Near Entries
Amid the negative motion on the stock market today, it’s a wonderful time to look for stocks nearing breakouts for one’s watchlist.
Chip equipment stock KLA saw early gains fade and dipped 0.3%. It’s eying an entry of 729.15 out of a third-stage flat base, MarketSurge evaluation shows.
Lam Research reversed 1.1% lower, but is continuous to trade tightly. It’s trying to reach a flat-base entry of 1,000.39. This generally is a third-stage pattern, which is between early and late stage.
Its earnings performance won’t be ideal, but Lam Research is amongst the numerous top 6% of stocks relating to price performance over the past 12 months.
Finally, aerospace play Heico ended the day up 1% since it chases a flat-base buy point of 200.64. It’s a first-stage base, which suggests it’s more susceptible to net big gains. The stock’s EPS Rating is accessible in at 83 and it boasts strong institutional support.
Please follow Michael Larkin on X, formerly often called Twitter, at @IBD_MLarkin for more evaluation of growth stocks.
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