The major stock market indexes closed barely mixed Tuesday. Nvidia shares eased from larger losses on new U.S. trade restrictions with China. Treasury yields were back on the rise and hit 52-week highs.
The yield on the benchmark 10-year Treasury note surged 14 basis points to near 4.85%, which appeared to influence the afternoon weakness in stocks. At one point Tuesday, the 10-year yield hit 4.846%, a 52-week high and a level not seen since July 25, 2007. The 2-year yield also reached a 52-week high of 5.212% today — a rate not seen since July 6, 2006.
The Nasdaq fared the worst and dipped 0.3% in the stock market today. The Dow Jones Industrial Average and the S&P 500 were nearly unchanged. Meanwhile, the small-cap Russell 2000 rallied 1.1%.
The Nasdaq tested its 50-day moving average before ceding gains. The S&P 500 continued to hold below its 50-day moving average but also met resistance at its 50-day line. The Dow held above its 200-day moving average.
Volume rose slightly on the New York Stock Exchange and on the Nasdaq, according to preliminary numbers.
The Invesco QQQ Trust exchange traded fund, which tracks the Nasdaq 100, shed 0.3%. The Innovator IBD 50 ETF outperformed the major indexes and advanced 0.8%.
Stock Market Action: Nvidia Tanks
IBD 50 stock Nvidia tumbled after the Commerce Department tightened its restrictions on the export of artificial intelligence chips and manufacturing equipment to China. Shares pared losses to 4.7%. NVDA stock fell below its 50-day line but continues to form a base with a 502.66 buy point.
Israel-based CyberArk Software stock rallied 3.6% after JPMorgan upgraded the stock to overweight from neutral and raised its price target to 200 from 182. Shares of the network security company have traded wide and loose since breaking out of its latest base. The stock is above its 50-day line and revisited the buy zone of a 169.34 entry.
Fitness beverage company Celsius Holdings jumped 4.1% and retook its 21-day exponential moving average. Shares climbed off the October lows but remain below the 50-day line.
Lockheed Martin improved to a 0.2% gain after the company reported higher-than-expected third quarter earnings and sales, but earnings lagged last year's quarter. The defense and aerospace stock is in a long irregular base with a 508.10 buy point. Shares retook the 50-day line on Oct. 9, following the start of the Israel-Hamas conflict.
Wyndham Hotels & Resorts rallied 9% in huge volume after the hotel operator rejected the latest proposal by Choice Hotels to buy the company. Choice shares tanked more than 6% on the news and fell below the 200-day line.
Other Stock Movers: VMware Stock Sinks
VMware tumbled more than 7% in heavy volume on speculation that China may block the merger between the cloud software company and chip giant Broadcom. VMW stock fell sharply below its 50-day line and triggered a sell rule before retaking the line. Shares of Broadcom fell 2%.
VF Corp soared nearly 14% in heavy trading. Activist firm Engaged Capital has built a large stake in the outdoor apparel and footwear company and is pressing to cut costs. The stock is bumping up against its 50-day line. VF owns North Face, Vans, Timberland and Dickies brands. VFC shares were the biggest gainer in the S&P 500 Tuesday.
Insurer Unum Group advanced nearly 2% and broke out of a flat base after hitting the 51.15 buy point. Shares are in the 5% buy zone reaching to 53.71. The stock rose for the eighth time in the past 10 days.
Bank of America gained over 2% after the company exceeded third-quarter EPS and revenue expectations.
Goldman Sachs slipped 1.6% after the company reported higher than expected Q3 earnings, but a decline from the year-ago quarter. Goldman stock was the biggest loser in the Dow Jones today.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
