May 24, 2024

The Dow Jones and other major stock indexes plunged in morning trades Tuesday, as the markets braced for a key inflation report. Meanwhile, Tesla rose as investors weighed major developments at the electric-car maker, and Nvidia fell on the stock market today in spite of analysts’ bullish views on its China sales.




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The Dow Jones Industrial Average dropped 0.6% as did the S&P 500. Tech-heavy stocks on the Nasdaq lost 0.4%. The Dow Jones index fell below its 50-day moving average while the S&P 500 and the Nasdaq dipped below their 21-day moving averages.

Among the S&P sectors, communication services and real estate led while industrials and financials fell. Technology and consumer discretionary had smaller gains.

Meanwhile, small caps on the Russell 2000 rebounded from the 21-day moving average and rose 0.4% after pronounced volatility in recent sessions. And volume on both the New York Stock Exchange and Nasdaq exchange was lower compared with the same time on Monday.

The Innovator IBD 50 (FFTY) exchange traded fund lagged and fell 0.4%. The ETF is testing support at the 50-day moving average. Further, the yield on the benchmark 10-year Treasury note fell 4 basis points to 4.38%.

Magnificent Seven: Tesla Up, Nvidia Down

Among Magnificent Seven stocks, Tesla (TSLA) added 3% to Monday’s gains on the stock market today after Chief Executive Elon Musk said on X, formerly Twitter, that the company would unveil its robotaxi on Aug. 8. Musk also denied rumors that Tesla would not make a mass market vehicle.

But according to reports, analysts at Deutsche Bank said it is still too early to weigh in on the “thesis-changing” news. Too much uncertainty remains regarding both an autonomous car enabled with artificial intelligence, and what the analysts called a “volume play” through a low-priced vehicle.

Fellow Mag 7 stock Nvidia (NVDA) fell 1% even after a CNBC report that the AI chip leader’s China sales may exceed lowered expectations. Nvidia is a holding in Investors Business Daily’s IBD Leaderboard model portfolio, as well as the growth list IBD 50.

Stock Market Today: Inflation Report Due

There was no economic news due Tuesday. But the Labor Department is due to release its Consumer Price Index report for March on Wednesday.

On an annual basis, inflation is seen rising to 3.5% from 3.2% in February, provided that the monthly increase tapers to 0.3% from February’s 0.4%. Core inflation is expected to fall to 3.7% from 3.8% annually, according to Econoday.

Elsewhere, IBD MarketSurge Growth 250 showed a possible sector rotation underway. The top gainers were insurance stock Root (ROOT) and retail stock American Eagle Outfitters (AEO). Eldorado Gold (EGO) also rose.

In the IBD 50, top gainers were MakeMyTrip (MMYT) and Permian Resources (PR).

Dow Jones Stocks On Stock Market Today

Among stocks in the Dow Jones index, software and networking stocks rose. Cisco (CSCO), Salesforce (CRM) and Microsoft (MSFT) all registered gains. But chipmaker Intel (INTC) fell.

Outside the Dow, Google-parent Alphabet (GOOGL) launched its cloud-computing event on Tuesday. The company announced Monday its Google Cloud unit is expanding its partnership with Palo Alto Networks (PANW). Palo Alto has committed to a “ten-figure” multiyear deal in which it makes Google Cloud its AI and infrastructure provider of choice.

Palo Alto Networks rebounded from the 200-day line and is in a base, though a buy point of 380.84 remains distant, according to IBD MarketSurge. Google stock was up fractionally in a buy zone after breaking out at 153.78.

Monday’s Stock Of The Day United Rental (URI) is building a flat base with a buy point of 732.37. Alamos Gold (AGI) rose on the stock market today after analysts at Bank of America upgraded the stock to a buy from a neutral rating with a price target of 27.25, up from 21.75.

First-quarter earnings start later this week with Wells Fargo (WFC), JPMorgan Chase (JPM) and Citigroup (C) reporting Friday.

Please follow VRamakrishnan on X/Twitter for more news on the stock market today.

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Source: investors.com

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