Stock Market Today: Adobe Sell-Off Casts Pall On Tech Stocks; Ulta Beauty Tumbles

Stocks struggled in the early going Friday, weighted down by an earnings sell-off for Adobe stock. Adobe (ADBE) plunged more than 10% in the stock market today despite reporting another quarter of solid bottom-line and top-line growth.




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Investors focused on a sluggish revenue outlook from Adobe, which trumped news of a new $25 billion share repurchase program. The stock gapped below its 200-day moving average in heavy trading.

The Nasdaq composite and S&P 500 sustained losses of 1% and 0.7%, respectively. The Russell 2000 small-cap index edged higher after a sharp drop Thursday. The Dow Jones Industrial Average eased 0.4%.

The early weakness comes after the Nasdaq composite and S&P 500 logged distribution days Thursday. This morning, winners were evenly matched with losers on the Nasdaq, with breadth slightly positive on the NYSE.

Stock Market Today

Technology stocks lagged in the Dow Jones today, with names like Salesforce (CRM), Amazon.com (AMZN) and Microsoft (MSFT) down 1.5% to 2%.

Nvidia (NVDA) reversed slightly higher in the stock market today after last week’s bearish downside reversal in huge volume. The sell-off on March 8 raises the likelihood of a near-term pullback for Nvidia, but the stock has been stubborn about giving back gains ahead of next week’s AI conference.

Sellers knocked bitcoin lower by nearly 2%. But Coinbase (COIN) reversed higher after a soft start. MicroStrategy (MSTR), which announced another debt offering earlier in the week to buy more bitcoin, was down more than 3%. Bitcoin miner and IBD 50 firm CleanSpark (CLSK) added 5%.

The 10-year Treasury yield, up nearly 20 basis points in the prior three sessions, edged higher to 4.31%. Yields spiked Thursday after the Producer Price Index showed unexpectedly high wholesale prices. The Consumer Price index on Wednesday also showed hotter than expected prices.

In economic news today, the Empire State Manufacturing index contracted more than expected in March at -20.9. The Econoday consensus was for -8.

Ulta Beauty (ULTA) pared losses but still slumped more than 5% in the stock market today after the company reported a 21% rise in quarter profit. Revenue increased 10% to just over $3.55 billion. But the beauty retailer guided full-year earnings slightly below expectations.

In the biotech group, Madrigal Pharmaceuticals (MDGL) soared nearly 20% after the Food and Drug Administration approved Rezdiffra to treat patients with liver disease. Eli Lilly (LLY) and Leaderboard stock Novo Nordisk (NVO) are testing their blockbuster weight-loss drugs for the same disease, known as nonalcoholic steatohepatitis, or NASH.

Follow Ken Shreve on X @IBD_KShreve for more stock market analysis and insight.

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Source: investors.com

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