The Dow Jones Industrial Average fell on Monday as yields soared despite major index components. goldman sachs (GS) exceeded the number of views. meanwhile, tesla (TSLA) fell after CEO Elon Musk said large-scale layoffs were planned. Trump's media and technology (DJT) also sank.and apple (AAPL) and Nvidia (NVDA) Both fell on the stock market today despite bullish voices on Wall Street.
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In addition, the following three notable stocks are close to entry. KLA (KLAC), ram research (LRCX) and Heiko (Hey).
Stocks initially rose after Israel successfully repelled last weekend's attack on Iran. Israel Defense Forces Chief of Staff Helj Halevi said on Monday that “there will be a response” to the attack. This seems to have fueled investors' concerns about further escalation of the situation in the Middle East.
In economic news, US retail sales were stronger than expected. Overall retail sales rose 0.7% in March, compared to expectations of a 0.3% increase. Excluding automobiles and gasoline, the index rose 1%, again exceeding the number of views. The overall rate of increase for February has been revised upward to 0.9%.
“While strong sales growth is a good sign for economic growth in the quarter, the surge in consumer spending is likely to lead to higher consumer prices,” Sam Millett, senior investment strategist at Commonwealth Financial Network, said in a note to clients. “This could lead to further inflation,” he said. “Bond yields rose immediately following the announcement due to growing concerns about a potential no-landing, no-rate-cut scenario.”
Stock market today: Nasdaq, small caps hit hard
The Nasdaq Composite Index fell 1.8%, evaporating early gains into a loss. trade desk (TTD) and atlassian (TEAM) was one of the late starters. The former's stock fell 6.2%, while Atlassian's fell 7.1%.
The benchmark S&P 500 index also fell by 1.2%, erasing its gains.It was local banks that went against the flow. M&T Bank (MTB) rose more than 4.7% despite missing out on gains. According to MarketSurge analysis, the stock is approaching a flat base entry of 148.23.
All S&P 500 sectors were negative. Technology and real estate were the worst hit by the bears.Healthcare, consumer staples and defense sectors held up best in the stock market today.
Small-cap stocks reversed lower, with the Russell 2000 down 1.4%. Growth stocks also took a hit, with the Innovators IBD 50 ETF (FFTY) down 2.1%. The margins were weak, with declining issues leading advancers by more than 5 to 1 on the New York Stock Exchange and more than 3 to 1 on the Nasdaq.
After Friday's safe flight, yields rose significantly again. The 10-year bond rose 12 basis points to 4.61%, and the 30-year bond rose 13 basis points to 4.73%. The five-year bond yield rose nine basis points to 4.63%, and the two-year bond yield rose three basis points to 4.92%.
Another ugly market reversal occurs.Tesla plunges into a 'dark day'
Dow Jones Today: Salesforce Stock Slumps
On Monday, the bear attack caused the Dow Jones stock to reverse, dropping 248 points and erasing its early gains. This corresponds to a decrease of 0.7%. At the high of the session, the blue-chip index rose more than 400 points.
Goldman Sachs stock was the best performer, rising 2.9% after the bank reported first-quarter profits that far beat Wall Street's expectations. This was driven by strength in trading and investment banking.
intel (INTC) and united health (UNH) also shined. Intel rose 1.7% and UnitedHealth rose 1.5%.
sales force (CRM) fell 7.3% on Monday, the worst performer on the Dow Jones Index and S&P 500. It was the worst day for stocks since Dec. 5, 2022, according to Dow Jones Market Data.
Salesforce is in advanced negotiations for acquisition Informatica (INFA) and the Wall Street Journal reported.
Stock Market Today: Donald Trump Stocks Plunge
Things continue to be tough for Trump Media & Technology investors. Shares fell another 18.4% on Monday after the company announced plans to issue additional shares.
This is not unusual for SPAC stocks, but the addition of 21.5 million shares would add more than 15% float to the market. This kind of dilution is never the way to win over shareholders.
Those who bought Donald Trump's stock at its recent high are facing painful losses. Trump Media stock is now down more than 66% from its 2024 high on March 26th.
Those who were holding on after buying Trump Media at a record high of 175 (recorded in October 2021 when it was still a Digital World acquisition) lost nearly 85% of their assets.
Parent company Truth Social is also struggling on the technical front. Monday's move means it is now about 39% below the key 50-day moving average, according to MarketSurge analysis. There is a possibility that we will try the 200-day line until launch soon.
As if that wasn't enough, Trump's hush money trial began in New York on Monday. This is the first time a US president has faced a criminal trial.
Cathie Wood buys plummeting stocks
Warren Buffett once said that investors “should be fearful when others are greedy, and only greedy when others are fearful.” That's certainly the case with ARK Invest CEO Cathie Wood, who took advantage of Friday's big sell-off to buy back into stocks that were on the decline.
Her company, where she also serves as chief investment officer, acquired more than 308,000 shares. recursion medicine ARK Innovation (ARKK) Exchange Traded Fund (RXRX) on Friday. It is currently nearly 51% below its February 27 high of 15.74 and below the 200-day line. Investor's Business Daily does not recommend buying stocks whose price is below 10 or is trending down.
The fund also purchased nearly 40,000 shares. Roku (ROKU) acquired shares for the ARK Innovation Fund on Friday.
Roku stock is currently trading below its 50-day and 200-day moving averages, according to MarketSurge analysis. On the stock market today, the stock is down nearly 46% from its recent high of 108.84 on December 14th.
Other moves made by the adventurer Wood include: teledoc health (TDOC) and 10X Genomics (TXG).
While it may be tempting to try to catch a falling knife, investors often end up losing money. IBD recommends buying stocks with strong earnings and price performance. Look for strong industry leaders that are demonstrating superior revenue growth and sales. IBD 50 is a rich hunting ground for such problems.
Stock market today: Elon Musk takes an ax to Tesla
Tesla shares fell 5.6% on news that the company is considering cutting more than 10% of its global workforce as it pursues growth. According to MarketSurge analysis, the 50-day moving average has lost further ground.
In a leaked memo, Musk said large-scale layoffs were necessary due to “duplication of roles and duties.” According to the company's annual report, the number of employees as of December 2023 is 140,473.
“There's nothing worse than this, but it has to be done,” Musk said, “so we can be lean, innovative, and greedy for the next growth cycle.” It will be,” he said.
Wedbush analyst Dan Ives rates the stock above his 300 price target, calling it “another dark day for Tesla.” He was concerned about the departure of “key” executives Drew Baglino and Rohan Patel.
“In our view, Mr. Baglino is an absolutely gutsy man, as he has contributed to Tesla's powertrain and energy efforts and was considered by many to be key to the Model 2 initiative in the coming years. It’s a punch loss,” Ives said.
Reports that deliveries of the Cybertruck were suspended may also have weighed on Tesla stock. The stock price has fallen by about a third so far in 2024.
The Magnificent Seven: Apple gets hit again
The remaining stocks in the so-called Magnificent Seven ended lower on the stock market today.
Apple fell 2.2%. This was despite Morgan Stanley reiterating its overweight rating on the stock. Apple stock lost ground at its 50-day line, which has become a resistance level.
Apple, a Dow Jones component, took a hit after iPhone shipments fell 9.6% from January to March from a year earlier, according to IDC estimates released Sunday. .
meta platform (META) fell 2.3% and reversed its decline. microsoft (MSFT) also fell, dropping 2% amid a sell-off in tech stocks. Currently, we are testing the 50-day line.
Leaderboard stock Nvidia erased early gains and closed 2.5% lower. This was despite Citi issuing a “Positive Catalyst Watch” on Nvidia stock, saying investors should buy on any weakness.
Amazon.com (AMZN), Google's parent company, fell 1.4% alphabet (GOOGL) fell 1.8%.
Beyond the Dow Jones: 3 stocks close to entry
With today's negative stock market movement, now is a good time to put stocks on your watchlist that are nearing a breakout.
Chip equipment stock KLA lost 0.3% after its early gains disappeared. According to MarketSurge analysis, we are aiming for an entry of 729.15 from a flat base in the third stage.
Lam Research reversed to a 1.1% decline, but continues to perform well. We are about to reach the flat base entry of 1,000.39. This is also a third stage pattern between early and late stages.
Despite less-than-ideal performance, Lam Research ranks among the top 6% of stocks based on stock performance over the past 12 months.
Finally, Aerospace's Heico ended the day up 1%, chasing a flat-based buy point at 200.64. This is your first step base and means you are likely to make a big profit. The company has an EPS rating of 83 and boasts strong support from institutional investors.
Follow Michael Larkin on X, formerly known as Twitter. @IBD_MLarkin For a detailed analysis of growth stocks.
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