The Dow Jones Industrial Average sunk lower Tuesday as the bears attacked the stock market again. Tesla flashed a sell signal amid the fallout from the deal CEO Elon Musk made to buy Twitter. Microsoft and Google parent Alphabet had mixed fortunes on earnings.
With the market gripped by a correction, now is the time to beef up your watchlist. World Wrestling Entertainment, Jazz Pharmaceuticals and Weyerhaeuser are possible candidates.
Volume was mixed compared to the same time Monday. It rose on the Nasdaq but fell on the New York Stock Exchange.
Meanwhile, the yield on the benchmark 10-year Treasury note fell around five basis points to 2.77%. Oil rebounded though, with West Texas Intermediate crude up nearly 3% to more than $101 per barrel.
Bears Maul Small Caps As Nasdaq Lags
The Nasdaq was the worst performing index as it dipped 2.9%. Outside of Tesla, Lucid Motors also lagged badly, down more than 8%.
The S&P 500 gave back 2%. General Electric was among the worst performers in the index as it sunk more than 10%.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 33455.28 | -594.18 | -1.75 |
| S&P 500 | (0S&P5) | 4211.69 | -84.43 | -1.97 |
| Nasdaq | (0NDQC ) | 12628.76 | -376.09 | -2.89 |
| Russell 2000 | 189.29 | -4.56 | -2.35 | |
| IBD 50 | 33.14 | -0.80 | -2.36 | |
Last Update: 2:56 PM ET 4/26/2022 |
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Most S&P sectors were mostly red. Energy was the only area managing to turn in a gain while technology and consumer discretionary were suffering most.
Small caps were also given a shellacking by the grumpy bears. The Russell 2000 fell 2.4%.
Growth stocks were also selling off once again. The Innovator IBD 50 ETF, a bellwether for growth stocks, dipped 2.4%.
Nike Stock Does This As Dow Jones Dives
The Dow Jones Industrial Average took a dive despite being the best performing index. It gave up nearly 600 points, or 1.8%.
Nike was faring worst as it fell more than 5%. This caused the stock to lose ground on its 50-day moving average. It is even further beneath the 200-day line.
Other laggards included Boeing which fell more than 4% and Visa, which dipped around 3%. Payments stock Visa is getting set to post earnings.
Tesla Stock Punished After Musk Buys Twitter
Tesla stock was bearing the brunt of it after CEO Elon Musk made a deal to buy Twitter.
The Leaderboard stock flashed a sell signal as it sunk below its 50-day moving average. Tesla stock was down nearly 11% for the day.
Current holders will be hoping the stock can rally from a test of its 200-day moving average.
The mammoth $46.5 billion deal to take Twitter private will see Elon Musk fund the deal with a mix of his own cash, a buyout loan and a loan against his own Tesla stock.
If Musk has to sell yet more TSLA stock to fund the deal, it could force Tesla stock even lower. That being said, the firm reported stellar earnings in the most recent quarter.
Twitter stock was also down Tuesday. It fell nearly 3% but remains near its 200-day line and clear of all its other moving averages.
Microsoft Earnings Beat, GOOGL Disappoints
Tesla's fellow Leaderboard member Microsoft reversed higher after hours on better than expected results.
The stock had also struggled during the regular trading session, giving up almost 4%. It remains rooted near the lows of a 23-week consolidation.
Analysts expected adjusted profit of $2.18 a share, up 17% year over year. Revenue is expected to pop 17% to $48.96 billion.
Instead, adjusted profit increased 14% to $2.22 a share. Revenue increased 18% to $49.4 billion, with cloud revenue up 32% to $23.4 billion.
Fellow tech behemoth Alphabet also fell also reporting following the closing bell. In open trading the stock had also given yp g%.
GOOGL stock is caught in a downtrend and is trading below all its moving averages. Strong results could help it fight back and find some much needed relative strength.
Analysts expected Alphabet to see earnings drop 2% to $25.70 per share. Sales were seen climbing 23% to $68.05 billion.
The firm reported that Q1 earnings had fallen 6% to $24.62 per share. Sales rose 23% to $68.01 billion.
Nasdaq Hits New Low As Tesla Dives; Microsoft, Google Headline Earnings
WWE Stock Pins Down This Accolade
World Wrestling Entertainment is currently trying to close in on a cup-with-handle entry of 63.81. This is a first-stage pattern, which means it is more likely to succeed.
Its bullish behavior amid widespread destruction has won WWE stock a spot on the Leaderboard Watchlist.
The firm reports earnings on May 5. If it can pile drive analyst estimates, the stock could see more upside.
Jazz Pharmaceuticals is holding above its major moving averages as it eyes a long cup-with-handle buy point of 167.08, according to MarketSmith analysis.
While earnings performance has not been ideal, JAZZ stock is in the top 11% of stocks in terms of price performance over the past 12 months.
Real estate investment trust Weyerhaeuser has formed a consolidation pattern with an ideal buy point of 43.14.
The firm owns nearly 12,400,000 acres of timberlands in the U.S. It also manages an additional 14,000,000 acres of timberland in Canada.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
