The Dow Jones Industrial Average was forced lower after briefly moving into positive territory as stocks battled back. Twitter jumped after Tesla CEO Elon Musk and Twitter founder Jack Dorsey attacked the Twitter board amid an ownership battle.
Leaderboard stock LPL Financial skidded after Charles Schwab missed earnings views. Goldman Sachs was the top blue chip.
A couple of stocks attempted breakouts despite the challenging market action. Murphy Oil and Laredo Petroleum both topped buy points.
Volume was lower on both the New York Stock Exchange and the Nasdaq compared to the same time Thursday, the most recent trading day after Friday's holiday.
Meanwhile, the yield on the benchmark 10-year Treasury note popped about five basis points to 2.86%. Oil also jumped, with West Texas Intermediate crude up more than 1% to more than $108 per barrel. Expectations of rising demand in China are pushing up prices.
Nasdaq Scrambles; Small Caps Struggle
The Nasdaq fought back out of negative territory but was down 0.1% in late trading. Chip stock Lam Research was among the top performers as it rose 3%.
The S&P 500 also was off 0.1% after trading briefly higher. Synchrony Financial was faring best outside of Twitter, as it gained nearly 7% after the company's earnings report.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 34412.61 | -38.62 | -0.11 |
| S&P 500 | (0S&P5) | 4391.81 | -0.78 | -0.02 |
| Nasdaq | (0NDQC ) | 13332.36 | -18.72 | -0.14 |
| Russell 2000 | 197.62 | -1.34 | -0.67 | |
| IBD 50 | 36.32 | -0.22 | -0.60 | |
Last Update: 5:30 PM ET 4/18/2022 |
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The S&P sectors were mixed. Energy and financials were shining brightest while health and consumer staples were the worst areas.
Small caps were struggling to fight off the bear attack though, with the Russell 2000 falling 0.5%.
Growth stocks were also struggling to find traction. The Innovator IBD 50 ETF, a bellwether for growth stocks, dipped 0.2%.
Dow Jones Lower As Goldman Sachs Stock Leads
The Dow Jones Industrial Average fell 0.1% after a brief gain.
Goldman Sachs was shining brightest on the Dow Jones today. It was up around 3%. Intel was also performing relatively well as it rose about 2.4%.
Walt Disney was faring worst as it fell about 2%. Its nearest rival for that spot, Johnson & Johnson, was off 1%.
Twitter Stock Up As Elon Musk, Dorsey Slam Board
Twitter stock vaulted after Elon Musk, who is trying to buy the company, and Twitter founder Jack Dorsey attacked the board.
Musk pointed out in a tweet that when Dorsey leaves the board this year it will "collectively owns almost no shares!"
"Objectively, their economic interests are simply not aligned with shareholders," Musk said.
And in a separate Monday missive he said that the board's collective salary "will be $0 if my bid succeeds, so that's [around]$3M/year saved right there."
Twitter founder Jack Dorsey, who is set to leave the board once his term expires following its upcoming shareholder meeting, said in a tweet that boardroom plots have "consistently been the dysfunction of the company."
Twitter stock was one of the best performers on the S&P 500 as it surged around 6%. It is now closing in on the 200-day moving average, MarketSmith analysis shows.
Musk has offered 54.20 per share cash to buy the rest that he doesn't own, giving him 100% of the firm, which he said is his "best and final offer" in a letter to Twitter Chairman Bret Taylor.
The board is trying to fight Musk off by adopting a so-called poison pill that makes it harder for the Tesla CEO to buy the firm.
Leaderboard Stock Hit As Charles Schwab Stock Dives
Charles Schwab stock was pulverized after an earning miss. It gapped lower and was down almost 9%. It flashed a sell signal by breaching its 200-day moving average in heavy volume.
The discount broker missed on both the top and bottom lines. EPS of 77 cents missed analyst views for 84 cents, according to FactSet, while revenue of $4.67 billion was well shy of the expected $4.83 billion.
Expenses were also higher than expected. With the boom in retail trading receding as people return to work, the firm has a challenge ahead to maintain its rate of growth.
Leaderboard stock LPL Financial, which provides a platform of brokerage and investment advisory services to financial advisors, was hit following the report. The stock was off session lows, but remained down around 1.5%. It is extended past a 191.08 buy point.
These Stocks Test Entries
Energy has been the hottest sector so far in 2022, and another couple of names from that area stood out by making bullish moves.
Murphy Oil is actionable after the stock broke out of a rare ascending base pattern, according to MarketSmith analysis. The buy point here is 43.30. The relative strength line has just hit a new high, which is an encouraging sign.
Earnings are seen skyrocketing 233% in 2022 before rising another 39% the following year. Big money has been snapping up the stock in recent weeks.
Laredo Petroleum slid back under its 88.40 entry after breaking out of a cup-with-handle base. With institutional interest also strong here, it might be one to add to a watchlist.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
