The Dow Jones Industrial Average closed slightly higher as the stock market mainly treaded water. Meanwhile, Fox skidded after it emerged that Tucker Carlson has left Fox News. Microsoft and Intel slumped while First Republic soared before diving after-hours.
A trio of noteworthy names attempted breakouts despite the choppy action. ExxonMobil, Wingstop and Hologic all tested entries.
Treasury yields dipped. The 10-year yield fell 7 basis point to 3.51% while the two-year yield slid 6 basis points to 4.14%, making the yield curve more inverted.
Nasdaq Falls As IBD 50 Lags
The Nasdaq lagged the other major indexes, ending the day 0.3% lower. PDD was a laggard here as it dropped 3.6%.
The benchmark S&P 500 reversed higher to gain 0.1%. Albemarle impressed with a gain of 5.9%.
The S&P 500 sectors closed mixed. Energy, health and materials were the top performers. Technology and real estate were the worst areas.
Small caps lagged, with the Russell 2000 down 0.1%. Growth stocks also lagged, with the Innovator IBD 50 ETF sliding 0.6%.
Dow Jones Today: Microsoft Stock, Intel Lag
The Dow Jones average held up best out of the major indexes. It rose 0.2%, or 66 points.
Microsoft stock was among the worst performers here, falling 1.4%. It is trading in a buy zone above a 276.86 entry, MarketSmith analysis shows.
The stock is trading near the 21-day exponential moving average. Microsoft earnings are due after the close Tuesday, which could be a catalyst for further gains, or more weakness.
Chip behemoth Intel lagged most on the Dow Jones today, sliding 2.1%. It is trading below the 200-day moving average. Salesforce also struggled, falling 2.1%.
Caterpillar fared best on the index as it rose 1.4%. Chevron was just behind with a near-identical gain.
Fox Stock Dips On Tucker Carlson Departure
Fox stock managed to fight its way off lows for the day after falling sharply on the departure of commentator Tucker Carlson from Fox News.
His departure comes amid the fallout from Fox's $787.5 million defamation lawsuit settlement with Dominion Voting Systems.
"We thank him for his service to the network as a host and prior to that as a contributor," a Fox News Media spokesperson said in a statement.
Carlson was the star host on the network, with his show regularly drawing bigger audiences than both competitors on other networks and shows by other Fox News hosts such as Sean Hannity.
Fox stock recovered from session lows, but ended the day down 3%. The stock is forming a flat base with a 34.52 entry but has now fallen below its 200-day moving average.
Fox shares common ownership with the parent of Investor's Business Daily.
Solar Stocks Mixed After FSLR Downgrade
First Solar stock took a hit after Citi downgraded it to sell from neutral. Citi also slashed the price target to 194 from 220.
"We believe FSLR's long-term outlook for margins and growth will draw increased scrutiny as the global supply of Si-based modules rises while the cost drops," analyst Vikram Bagri said in a note to clients, regarding the cost of silicon modules for solar panels.
Bagri also believes that benefits from the Inflation Reduction Act may already be priced into the stock.
FSLR dropped 3.2% but managed to hold just above its 50-day moving average. It remains extended past a 185.38 consolidation entry.
Other solar plays were mixed. Enphase Energy closed slightly positive while Canadian Solar lost 0.5%. SolarEdge Technologies dropped 0.2%.
The Invesco Solar ETF was nearly flat after dropping nearly 1% earlier.
First Republic Stock Dives Late After Earnings
First Republic stock has been hammered amid the regional banking crisis.
It managed to shoot nearly 12.2% higher as it got set to report earnings after the close. But it then plunged nearly 22% in extended trading after the report came out.
All eyes were on the firm's deposit base. EPS was seen cratering 64% to 72 cents, according to Zacks Investment Research. Revenue was also expected to plunge 18.9% to $1.13 billion.
EPS of $1.23 was comfortably clear of views while $1.21 billion in sales also beat views. The stock appeared to fall on a near 41% decline in deposits to $104.5 billion.
FRC stock remains rooted far below its major moving averages. Even with Monday's rally, the San Francisco-based bank remains down more than 80% so far in 2023.
Analysts are growing increasingly confident that the regional banking crisis, sparked by the failure of Silicon Valley Bank, has been contained.
Outside Dow Jones: Exxon Stock Leads Breakouts
Despite the negative action there were a number of notable breakouts.
ExxonMobil is in a buy zone after clearing a cup-with-handle entry of 117.28. This is a first-stage pattern.
The stock boasts an EPS Rating of 79 out of 99 and it is in the top 10% of stocks in terms of price performance over the last 12 months.
Wingstop made a low-volume move above a 193.84 buy point. The relative strength line hit fresh highs, a bullish sign. WING stock is a member of the IBD 50 list of top-performing issues.
Medical systems play Hologic topped its 85.06 handle entry, but volume was light.
One reason for caution in the above breakouts is all have upcoming earnings reports.
An approach highlighted by Investor's Business Daily is to use options as a strategy to reduce risk around earnings. It's a way to capitalize on the upside potential of a stock's move around earnings, while reducing the downside risk.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more analysis of growth stocks.
