The Dow Jones and other indexes closed sharply lower Tuesday amid iPhone woes for Apple and economic reports. Meanwhile, investor Cathie Wood got rid of some Coinbase shares as bitcoin reversed course from a record high on the stock market today..
Highfliers Nvidia and Super Micro Computer reversed higher in the final hour of trading.
The Dow Jones Industrial Average sold off 1% as blue chips struggled for a second straight session. The index closed below its 21-day exponential moving average for the first time since Jan. 17.
The S&P 500 also closed 1% lower as defensive plays in the index rose. Among the 11 sectors on the benchmark index, technology was weakest, down 2.5%. The broader index remained comfortably above the 5,000 level and its 21-day line, however.
The Nasdaq fell nearly 1.7% after sliding more than 2% earlier in the day. The small-cap Russell 2000 lost 1% after hitting a new high Monday.
Volume fell on the New York Stock Exchange but climbed on the Nasdaq, according to unconfirmed numbers. Decliners beat advancers on the NYSE by about 7-5 and by nearly 2-1 on the Nasdaq, according to FactSet.
The yield on the benchmark 10-year Treasury note fell 8 basis points to 4.14%. And the Innovator IBD 50 exchange traded fund tumbled 3.8% as several growth stocks sold off.
Stock Market Today: Mixed Economic Data
In economic news, the S&P Global Purchasing Managers' Index for February showed a reading of 52.5 versus views of 51.4. The business survey is an indicator of economic trends. Factory orders in January dropped 3.6% but were expected to fall by 3%, according to Econoday.
Also, the monthly survey by the Institute of Supply Management for February came in at 52.6, just below views of 53.
Later this week, Federal Reserve Chairman Jerome Powell is due to give testimony before Congress. Powell is scheduled to appear before the House Financial Services Committee on Wednesday and the Senate Banking, Housing and Urban Affairs panel on Thursday.
Dow Jones Stocks
Shares of Apple sank 2.8% on reports of a steep drop in iPhone sales in 2024 in China. Counterpoint Research found that Apple's China's smartphone sales have fallen 24% in 2024 from the prior year amid fierce competition. According to the research firm, the comparison with an "abnormally high" sales record in January 2023 may be part of the reason.
But the iPhone maker also faces a risk as a top holding in Warren Buffett's Berkshire Hathaway. According to reports, Berkshire sold 10 million shares of Apple stock in the last quarter of 2023, according to its latest 13F filing, and could sell more.
Shares of IBM lost 0.6% but are nearing a buy point of 196.90 from a flat base, according to IBD MarketSurge. Consumer and industrial stocks gained in the Dow while techs were weakest.
Cathie Wood Sells Coinbase, Bitcoin Reverses
Famed investor Cathie Wood's Ark Innovation ETF sold more than $30 million in Coinbase stock, according to the company's disclosures. Coinbase soared 11% on Monday but gave back 5.4% Tuesday.
Meanwhile, bitcoin continued to eye higher levels and briefly topped the $69,000 mark early Tuesday before it reversed. It was down nearly 4% around the $64,500 level in recent action, according to CoinDesk.
Stock Market Today: Who's On The Move
Outside Dow Jones stocks, Nvidia reversed higher in the closing moments of the session. Super Micro Computer pulled back more than 4% earlier but rallied to gain 1.5% by the close.
Earnings movers included Target, which gapped up 12% after both sales and earnings beat analyst expectations.
Drone maker AeroVironment also gapped up, soaring 28% in the most volume in at least a year. Shares broke out from a cup base Tuesday after the company reported an earnings beat late Monday.
But GitLab plummeted 21% off disappointing results. Shares dived below the 50-day moving average and triggered a sell signal. GTLB was the worst offender in the IBD 50.
Duolingo plunged more than 6%, erasing nearly the entirety of an earnings gap-up on Thursday. ACM Research also suffered a steep fall of more than 8%.
Tesla rival Nio reversed 2.8% higher after its fourth-quarter report.
Tesla stock lost nearly 4% in the stock market today. IBD MarketSurge shows a persistent downtrend below the 50-day line for both electric-vehicle stocks.
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