The Dow Jones Industrial Average slid on the stock market today while Calvin Klein parent PVH (PVH) cratered following its quarterly report. Fund manager Cathie Wood loaded up on Tesla (TSLA) just before the EV stock plummeted on Q1 delivery data. Magnificent Seven stocks Nvidia (NVDA) and Meta Platforms (META) fell despite bullish Wall Street calls.
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Meanwhile, a trio of stocks eyeing buy points were trying to dig in near entries. Badger Meter (BMI), Republic Services (RSG) and TJX (TJX) are all near entries.
Stock Market Today: Nasdaq, Small Caps Slip
The tech-heavy Nasdaq gave up 1.4%. ON Semiconductor (ON) and Advanced Micro Devices (AMD) lagged with dips of more than 3% each.
The benchmark S&P 500 fell around 1%. Humana (HUM) and CVS Health (CVS) were among the worst performers here as managed-care providers sold off.
Calvin Klein parent PVH, which was dropped from the S&P 500 in 2022, was a noteworthy laggard on the stock market today as it gave up around 23% after it warned of lower revenue for 2024. It gapped below its short-term and 50-day moving averages, triggering a sell signal.
S&P 500 components were mostly in the red. Energy and utilities were faring best on the stock market today. Technology and health care were the weakest sectors.
Small caps were bitten by the bears, the Russell 2000 falling nearly 2%. Growth stocks were getting an even harsher spanking, with the Innovator IBD 50 ETF (FFTY) crumbling more than 2%.
The Job Openings and Labor Turnover Survey showed available positions at 8.76 million. This was in line with economist expectations for 8.8 million and up 8,000 on January’s level. The ratio of openings to available workers fell to 1.35 from 1.43 the previous month.
The 10-year Treasury note rose 4 basis points to 4.37% while the 30-year also gained 4 basis points to 4.51%. The five-year yield popped 2 basis points to 4.36% while the two-year slid 2 basis points to 4.7%.
Dow Jones Today: UnitedHealth Dives
The Dow Jones was getting hit hard early, falling more than 400 points. This equates to a drop of about 1%.
UnitedHealth (UNH) was hardest hit, falling almost 6%. The stock lost even more ground on its 50-day moving average, MarketSurge analysis shows.
Health care stocks in general were hit after the Centers for Medicare and Medicaid Services announced Medicare Advantage rates for 2025 will increase 3.7%. This disappointed investors who had been hoping for a bigger increase.
Amgen (AMGN) and Intel (INTC) also lagged with dips of nearly 2% each. Chevron (CVX) trimmed gains and was up only 0.3%.
Cathie Wood Buys Tesla, Stock Dives On Deliveries
Buying laggards can be a perilous strategy. But one investor who is not afraid to buy the dip is Ark Invest Chief Executive Cathie Wood.
The firm, where she also serves as chief investing officer, snapped up more than 62,000 Tesla shares for its ARK Innovation ETF (ARKK) Monday. It also bought just over 22,000 shares for the ARK Next Generation Internet ETF (ARKW).
But this time it failed to pay off for the fearless investor as Tesla shares crumbled around 5%, losing further ground on the 50-day moving average in the process.
Tesla was hammered on weak Q1 deliveries. They fell 6.5% year over year to 387,000, missing expectations for 454,000 deliveries. It was also a decline of 20% on the previous quarter.
Tesla stock sits around 45% below its 2023 high of 299.29, which it reached last July. It has been stuck in a stubborn downtrend since then.
The move underlines the risks of buying a stock heading into a key report, whether it be earnings or, in this case, product delivery data.
Bargain hunting can be tempting for investors but IBD recommends buying stocks with strong earnings and price performance rather than laggards. Look for leaders in strong industries that are showing superior earnings growth and sales, such as stocks in the IBD 50 list of top stocks.
Magnificent Seven: Nvidia, Meta Fall Despite Bullish Calls
The other Magnificent Seven stocks were all having negative sessions.
Nvidia (NVDA) fell almost 3%. The Leaderboard stock is extended past its most recent entry. The chip stock, a leader in artificial intelligence, is now testing support at the 21-day exponential moving average. It was lower despite Oppenheimer reiterating an outperform rating.
Meta Platforms (META) also skidded on the stock market today, falling almost 1%. It has dipped below the 21-day line but remains above the 50-day moving average. It fell despite Bank of America reiterating its buy rating while also hiking its price target to 550 from 510.
Google parent Alphabet (GOOGL) skidded around 2%, though volume was below-average. It is trading just below a 153.78 entry.
E-commerce giant Amazon.com (AMZN) and Microsoft (MSFT) both dipped more than 1% while Apple (AAPL) fell nearly 1%.
Outside Dow Jones: 3 Stocks Near Entries On Stock Market Today
Tuesday was not looking like the best day for breakouts. But a few noteworthy names were hanging tough near entries.
Badger Meter is in a cup-with-handle base with an ideal entry of 164.81. While overall performance is strong, earnings performance stands out. Earnings have grown an average 39% over the past three quarters. The stock is a member of the industrial machinery industry group.
Republic Services is another one to watch as it forms a flat base with a buy point of 192.57. It was holding firm on the stock market today and is trading above both its 10-day line and its 21-day exponential moving average.
Overall performance is very strong for the trash-hauling play, with its IBD Composite Rating coming in at 98. Earnings performance is a key strength, with RSG stock holding an EPS Rating of 95.
Off-price apparel play TJX was trying to dig in at the 21-day exponential moving average. It has formed a flat base with an ideal entry point of 102.84.
Earnings performance is stout, with its EPS Rating coming in at 93 out of 99. In total, 49% of its stock is currently held by funds, according to MarketSurge data.
Please follow Michael Larkin on X, formerly known as Twitter, at @IBD_MLarkin for more analysis of growth stocks.
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Source: investors.com
