The Dow Jones Industrial Average fell even as AI stock Microsoft jumped. Oil stocks such as Chevron and Baker Hughes popped as Saudi Arabia and Russia extended production cuts. A trio of Warren Buffett stocks, including Apple, are near entries.
A few stocks pluckily attempted breakouts despite the negative action. Sprinklr, CyberArk Software and Synopsys tested buy points.
Treasury yields spiked. The 10-year yield jumped 9 basis point to 4.26%, while the two-year yield also vaulted 9 basis points to 4.95%. The yield curve remains inverted.
Nasdaq Falls Late As Small Caps Plunge
The tech-heavy Nasdaq sold off into the close, reversing lower. It ultimately closed down 0.1%. Airbnb was a top performer here, spiking 7.2%.
The benchmark S&P 500 struggled, dipping 0.4%. EV stock Tesla stood out as it rallied 4.7%.
The S&P 500 sectors closed mostly lower. Technology and energy fared best in the stock market today. Materials, industrials and utilities lagged.
Bears took the biggest bite out of small caps, with the Russell 2000 diving 2.1%. Growth stocks also dipped, with the Innovator IBD 50 ETF losing 0.5%.
Dow Jones Today: Index Falls As Microsoft Stock Shines
The Dow Jones Industrial Average reversed after a positive open. It gave up 196 points, or 0.6%. It is now back below the key 50-day moving average.
Microsoft stock distinguished itself on the blue-chip index with a 1.5% pop. The AI play has just retaken its 50-day moving average, an encouraging move.
Chip giant Intel saw gains melt away; it ended the session up 0.3%. It tested a flat-base entry of 37.19 but failed to hold above the level.
Walgreens Boots Alliance and Merck lagged on the Dow Jones today. WBA fell 3% while MRK lost 2.1%%.
3 Warren Buffett Stocks Are Near Buy Points
He may have turned 93 years old last week, but few investors are as highly feted as Berkshire Hathaway CEO Warren Buffett.
A trio of stocks in the firm's portfolio are currently near buy points, according to MarketSmith analysis.
Apple has formed a new cup base with an ideal entry point of 198.23.
This is a first-stage base for Apple, which is a positive. AAPL boasts an IBD Composite Rating of 88 out of 99, which is less than the 90 minimum desired. The company's growth has slowed.
Visa is actionable after clearing a flat-base buy point of 245.37 last week. This is part of a bullish base-on-base formation. Institutional investors have been net buyers of the stock of late, with its Accumulation/Distribution Rating coming in at B-.
Jefferies Financial is forming a cup-with-handle base with an ideal entry point of 37.73. But while it is in the top 21% of stocks in terms of stock market performance over the past 12 months, its EPS Rating of 47 out of 99 is far from ideal.
Oil Stocks Gush Higher As Saudi, Russia Extend Cuts
Energy stocks rallied Tuesday after OPEC+ heavyweights Saudi Arabia and Russia extended production cuts, though gains faded into the close.
Saudi Arabia has opted to extend a production cut of 1 million barrels per day until the end of the year. It had originally been labeled as a temporary measure.
Russia, which is currently embroiled in a war with Ukraine, extended its own 300,000-barrel-per-day production cut until the end of 2023.
Oil major Chevron rose 1.3%, but Exxon Mobil closed with a nominal gain. ConocoPhillips also saw early gains fade but closed up 0.6%.
Baker Hughes popped 0.7% while Tidewater inched up 0.3%. Both stocks are members of the prestigious IBD Leaderboard list.
West Texas intermediate crude finished the session up 1.3%.
Futures Fall, But Tech Titan Eyes Buy Signal
Outside Dow Jones: These Stocks Test Buy Points
With the stock market back in a confirmed uptrend, now is the time to be looking for breakouts.
Sprinklr is in a buy zone after clearing a second-stage cup-base entry of 15.50. However, earnings are due after the market close Wednesday, which adds significant risk.
Overall performance is excellent, with Sprinklr's IBD Composite Rating coming in at 94. The relative strength line is also hitting fresh highs.
CyberArk Software closed just below a buy zone after briefly clearing a consolidation-pattern entry of 169.34. CYBR is in the top 16% of stocks in terms of price performance over the last 12 months. Earnings are not ideal: Its EPS Rating comes in at 68 out of 99. Losses are seen swinging to a profit in 2023 and then popping 162% in 2024.
Synopsys cleared a flat-base entry point of 468.03 but closed below it. The design software play boasts strong price and earnings performance. Its EPS Rating is a stout 95.
Please follow Michael Larkin on X, formerly known as Twitter, at @IBD_MLarkin for more analysis of growth stocks.
