The stock market pulled back from afternoon highs, with the major indexes holding on to losses. Investors jumped into bitcoin-related stocks as the price of bitcoin soared.
The Dow Jones Industrial Average dipped 0.2%. The Nasdaq, which had been down as much as 1.7%, trimmed its loss to 1%. The S&P 500 skidded 0.7% in the stock market today.
All three major indexes remained solidly above their 50-day moving averages. The small-cap Russell 2000 showed strength and gained 0.9% after forcefully reclaiming its 200-day moving average on Friday.
Volume rose on the New York Stock Exchange and the Nasdaq vs. the same time on Friday.
The Invesco QQQ Trust, which tracks the Nasdaq 100, trimmed 1.2%. The Innovator IBD 50 ETF eased from larger losses, now down 1.1%. And the 10-year Treasury yield added 7 basis points to just under 4.3%.
October factory orders dipped 3.6% from September vs. the 2.6% drop expected, according to Econoday. Tuesday we get the Labor Department's October job openings data and the final November PMI numbers. Thursday brings the weekly jobless claims numbers and, more importantly, on Friday eyes will be on the November payroll report.
Stock Market Movers: Lululemon Sinks After Downgrade
Lululemon Athletica fell 2.1% after Wells Fargo downgraded the yoga apparel retailer to equal weight from overweight with a 445 price target. Meanwhile, Deutsche Bank raised its price target to 500 from 479 and maintained its buy rating.
LULU shares reached a 52-week high on Friday and are extended from a 406.94 flat base buy point. Lululemon reports its October-quarter earnings Thursday after the market close.
IBD 50 component MakeMyTrip surged 6% to hit an all-time high in heavy volume. The stock has climbed since the travel company beat Q3 profit and revenue expectations on Nov. 2. Travel stocks have acted strongly in November.
Idexx Laboratories gapped up above the 484.07 buy point of a cup-with-handle base and is in the 5% buy range. The veterinary products stock has rallied since Idexx reported a mixed third quarter on Nov. 1.
Palantir Technologies sank more than 8% after William Blair analysts see potential headwinds after a U.S. Army presentation last week hinted that Palantir's renewal contract may be less than the original contract. The government cybersecurity stock undercut its 21-day exponential moving average in heavy trading Monday, and is 8% below its 20.24 buy point. That triggers a sell signal.
Chinese game maker company NetEase gapped below the 50-day line and is on pace for a seven-day losing streak. The descent triggered a sell signal. The stock pulled back from a 52-week high set on Nov. 20, following the company's upbeat third-quarter earnings report on Nov. 16.
Meta Platforms also gapped below the 50-day average, but is trying to regain the line.
Bitcoin Stocks Jump
Coinbase Global jumped nearly 7% in heavy volume, as the price of bitcoin topped $42,000 for the first time since April 2022. Coinbase shares are more than 20% above a 114.43 buy point, according to MarketSmith pattern recognition. So investors can take some profits, especially as the stock backs off from opening highs.
Other stocks benefiting from the rise in bitcoin include MicroStrategy and crypto mining tech firm Marathon Digital. MicroStrategy — the largest corporate holder of bitcoin — topped a profit zone from a 449.49 buy point of a cup-with-handle base a month ago, and has now cleared resistance around 535.
Spotify gapped up after the music streaming service announced in a staff memo on Monday that it would lay off another 17% of its workforce, or about 1,500 workers. This is the third staff reduction this year. The stock is nearing a 20% profit zone of a flat base with a 167.74 buy point. The stock reached a 52-week high on Monday.
Uber Technologies gained nearly 5% on news that the ride-hailing company will join the S&P 500 index on Dec. 18. Shares are in the profit zone of a double-bottom base with a 49.19 buy point.
Alaska Air Group sold off sharply on news the airline agreed to buy Hawaiian Airlines for $1.9 billion and assume $900 million in debt. The move sent Alaska Air stock below its 50-day line, triggering a further sell signal.
Hawaiian shares catapulted 187% in huge volume.
Science Applications gapped up following the company's mixed October-quarter results. Its adjusted earnings increased while revenue declined. The government technical services provider in the earnings release raised its full-year fiscal 2024 revenue guidance. The revised guidance exceeded estimates.
Stock Shakers: Online Car Retailer Races
Carvana jumped 15% after JPMorgan upgraded the online used car retailer to neutral from underweight and raised its price target to 40 from 25.
General Motors rose 2.8% following Mizuho's upgrade to buy from neutral with a price hike to 42 from 38.
IBD 50 stock Fluence Energy advanced more than 4% after Roth MKM upgraded the stock to buy from neutral and raised its price target to 31 from 27. This follows several other analysts' price target hikes last week. Shares are near the 28.14 buy point of a lopsided double-bottom base.
In other stock market news, Virgin Galactic plunged 17% on news that its founder Richard Branson said he wouldn't put more money into the space tourism company.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
