The Dow Jones Industrial Average closed lower Tuesday even as blue-chip Microsoft shook off overseas antitrust charges. Nvidia boosted the Nasdaq by popping after a Wall Street call, while SolarEdge Technologies plunged on a debt offering. And both Chipotle Mexican Grill and bitcoin managed to rally on the stock market today.
The Dow Jones index finished near lows for the day as it fell nearly 299 points, or 0.8%. In contrast, the tech-heavy Nasdaq composite closed near session highs as it rallied 1.3%. Chip stock Arm, a recent initial public offering, flexed its muscles here, powering 6.3% higher.
However, fellow Nasdaq component SolarEdge cratered, plummeting 20.6% amid news of a debt offering. The firm plans to offer $300 million in convertible notes, due in 2029.
Meanwhile, the S&P 500 rose 0.4%. In the S&P, cruise stock Carnival sailed higher on a second-quarter earnings beat, rising 8.7%. But Pool plunged 8% after it cut its full-year earnings outlook. Trading was briefly halted on Pool.
Leaderboard stock Novo Nordisk rose 3.3%, gaining after the company's weight-loss drug Wegovy was approved in China. It is extended past a 137.22 entry. Chipotle Mexican Grill, set to undergo a 50-for-1 stock split, ended the day up 2.8%. The stock is off last week's highs but retained support at its 21-day exponential moving average.
The S&P 500 sectors ended mostly lower. Technology and communication services fared the best while real estate and materials were the worst performers.
Small caps closed off session lows, but the Russell 2000 still fell 0.4%. The Innovator IBD 50 ETF finished the day at highs, rising 1.6% on the stock market today.
Magnificent Seven: Nvidia Pops After Bullish Call
Nvidia got some respite after negative action knocked it off its perch as the world's most valuable publicly traded company. Nvidia shares surged 6.8% on the stock market today.
Some relief was arguably due given the stock's sharp reversal. Bank of America reiterated its buy rating on Nvidia and added it to its "best-of-breed" list, which it reserves for firms with strong balance sheets, excellent management teams and impressive earnings-per-share growth.
The other so-called Magnificent Seven stocks were also making gains. Tesla rallied as it headed into the close, and ended the day more than 2.6% higher. Tesla remains above its 50-day line but below its 200-day moving average. It jumped despite a Cybertruck recall.
Meta Platforms and Google-parent Alphabet were also solid. Shares of Meta rose 2.3% while Alphabet gained 2.7%. Meta stock is eyeing a cup-with-handle entry of 514.01.
Dow Jones component Apple, which is extended, ended the day up 0.5%. E-commerce giant Amazon.com turned in a gain of 0.4%.
Updated 3:15 p.m. ET
Stock Market Today: Airbus, Boeing Fall As Spirit Fades
Airbus) was fighting back amid a torrid session, but remained lower. Shares were down nearly 2% heading into the close.
Airbus gapped below the 200-day moving average in high volume, triggering a sell signal. The stock took a hit after the company pared its forecast for deliveries and operating profits.
Meanwhile, Airbus rival and Dow Jones component Boeing was down more than 2%.
Boeing fell after news emerged that the aerospace giant now plans to buy Spirit AeroSystems with stock rather than cash. This adds a wrinkle to the $4 billion deal.
Spirit stock tumbled about 4%. But the maker of aircraft fuselages and other major components looks to be getting support at the important 50-day moving average.
Spirit AeroSystems stock lost ground on a potential cup-base entry point of 36.34, according to MarketSurge analysis.
Updated 2:01 p.m. ET
Bitcoin Jumps, Crypto Plays Gain
Bitcoin also fought back Monday's losses by rallying about 3% Tuesday. It is back near the $62,000-per-coin level after testing the $60,000 mark yesterday, according to CoinDesk.
The cryptocurrency is now comfortably clear of its 24-hour low of $58,580.29. Crypto bulls will be relieved that it has battled back above the psychologically important $60,000 level.
Nevertheless, the price of the digital currency remains well off highs for the year. Bitcoin is down more than 16% from its 2024 high of $73,737.94, which it reached back in March.
The well-established Grayscale Bitcoin Trust surged more than 4%. BlackRock's spot bitcoin exchange traded fund, the iShares Bitcoin Trust , rose 4%.
Another noteworthy fund is ARK 21Shares Bitcoin ETF , Ark Invest's offering in the space. The ETF, part of Cathie Wood's ARK Invest family, rose 3.9%.
Other bitcoin stocks also gained. Coinbase jumped nearly 5% and Marathon Digital popped nearly 3%.
Updated 12:10 p.m. ET
Stock Market Today: Consumer Confidence Slips
The health of American consumers is critical given their outlays account for about 70% of the U.S. economy.
Consumer confidence fell slightly in June. It retreated to 100.4 this month from a revised 101.3 in May, the Conference Board said today. This was roughly in-line with economist expectations for a 100 reading.
"We have some concerns about the consumer's willingness and ability to keep spending and the drop in Consumer Confidence isn't welcome news from that perspective," Independent Advisor Alliance Chief Investment Officer Chris Zaccarelli said in a note to clients. "Ultimately, we believe the bull market we are in isn't going to be derailed . . . until either we go into recession or the Fed changes interest rate policy from potential cuts to actual hikes."
Meanwhile, some stocks in the IBD Growth 250 were struggling on the stock market today. Chinese internet content stock Kanzhun fell almost 4%, losing ground on its 50-day moving average and skidding more than 9% below a 21.32 entry.
Owens Corning has undercut the 50-day moving average, a sell signal. It was down more than 3%. It is also falling away from a three-weeks-tight entry.
Updated 10:44 a.m. ET
Stock Market Today: Fed Official Says Rate Hikes May Be Needed
Federal Reserve Gov. Michelle Bowman warned in a speech in London that further rate hikes may be needed if there is no further progress on inflation.
"I remain willing to raise the target range for the federal funds rate at a future meeting should progress on inflation stall or even reverse," she said.
Bowman, a member of the rate-setting Federal Open Market Committee, also said "we are still not yet at the point where it is appropriate to lower the policy rate."
Many consider Bowman as one of the more hawkish members of the FOMC. Treasury yields were little changed. The 10-year was flat at 4.25% while the 2-year was up one basis point.
Nasdaq Leads As Nvidia Roars; FedEx, Rivan Spike Late
Dow Jones Today: Microsoft Steady Amid EU Charges
Microsoft stock remained firm Tuesday despite receiving antitrust charges from the European Union.
The EU accuses the software titan of anticompetitive practices for bundling its Teams app with its Office suite. The EU claims this disadvantaged rivals in the video conferencing space such as Zoom Video Communications and Salesforce's Slack.
Separately, Goldman Sachs reiterated its buy rating on Microsoft stock with a 515 price target, saying it sees the company "yielding strong returns on its Gen-AI investments."
Microsoft is trading above a prior flat base entry of 430.82. Its relative strength line has been making gentle progress of late.
Amgen was the top performer on the Dow Jones today as it gained more than 1%. The stock broke out of a cup-with-handle base and is in buy range from the 322.60 buy point. Home Depot lagged with a decline of more than 4%. Walmart also struggled, falling over 2%.
Outside Dow Jones: These Stocks Test Entries
Natural gas transportation play Hess Midstream is flirting with a flat base entry of 36.84, according to MarketSurge analysis.
The stock holds a perfect IBD Composite Rating of 99. Earnings performance is its strongest suit, with its EPS Rating coming in at 94 out of 99.
Financial software stock Fair Isaac is testing a flat-base entry of 1,451.78 on the stock market today. The relative strength line hit fresh heights. Fair Isaac is among the top 5% of issues in terms of price performance over the past 12 months.
Overall performance is good, with its IBD Composite Rating a strong 97. Earnings are not ideal though, with its EPS Rating sitting at 73 out of 99.
Please follow Michael Larkin on X, formerly known as Twitter, at @IBD_MLarkin for more analysis of growth stocks.
