Stocks closed with mixed results Tuesday as the Dow Jones Industrial Average and S&P 500 edged slightly higher while the Nasdaq composite slipped. Disney plunged and was the worst performer on the Dow. Meanwhile, Palantir Technologies sold off on the stock market today following earnings.
The Dow Jones Industrial Average ticked 0.1% higher in the wake of reclaiming its 50-day moving average Monday. The S&P 500 also added 0.1%, while the Nasdaq pulled back 0.1%. All three indexes came off the session's lows and remained above their 50-day moving averages.
The Russell 2000 stood out as it rose 0.2%. Volume rose on both the Nasdaq and the New York Stock Exchange vs. the same time in Monday's session.
Among exchange traded funds, Invesco QQQ Trust was nearly flat. The Innovator IBD 50 ETF erased earlier gains and dipped 0.4%.
West Texas intermediate crude oil edged higher to $78.50 a barrel. The benchmark 10-year Treasury yield ticked lower to 4.46%.
Disney Is Worst In Dow
Dow Jones stock Walt Disney gapped down 9.5% in huge volume and knifed below its 50-day line, triggering a sell signal. Shares had been forming a flat base with a 123.74 buy point.
The media and entertainment company reported better-than-expected adjusted earnings for its fiscal second quarter. Revenue, however, came up short of forecasts.
The stock drop was Disney's largest percentage decrease since Nov. 9, 2022, when shares fell 13.2%, according to Dow Jones market data. Disney was the biggest loser among the 30 Dow components on the stock market today.
Meanwhile, IBD 50 stock Palantir Technologies plummeted 15.1% in heavy volume after the company reported first-quarter earnings that met expectations and topped sales views.
Palantir predicted its second-quarter revenue would beat estimates, but its full-year 2024 outlook disappointed investors. Palantir offers AI tools to government customers for intelligence gathering, counterterrorism and military purposes. The company now plans to use generative AI to spur growth in the commercial market.
Stock Market Today: Nvidia, Microsoft Invest In A startup
Magnificent Seven stock Nvidia dropped 1.7% but pared larger losses. The AI and chip leader is one of the investors in Wayve Technologies. Wayve has raised more than $1 billion to speed up the development of artificial-intelligence products for autonomous driving.
In separate news, Goldman Sachs raised its price target on Nvidia stock to 1,100 from 1,000 and maintained its buy rating. Nvidia stock is in a cup base with a 974 buy point.
Another Magnificent Seven name, Microsoft, is also an investor in U.K.-based Wayve. Microsoft shares weakened in afternoon trading and slid 1%. Shares are in a flat base with a 430.82 buy point.
Builders Crashes, Axon Falls
Elsewhere, Builders FirstSource cratered 19.1% in huge volume even after the construction materials company topped first-quarter profit and sales estimates. But investors focused on its 10% earnings drop over last year's quarter on flat sales. Analysts polled by FactSet expect declining profits for the next four quarters with 7% sales growth over the next three periods.
Another IBD 50 name, Axon Enterprise sank 4.6% in heavy trading, even after the company reported first-quarter adjusted earnings and revenue that came in higher than expected. It also raised its 2024 sales outlook.
Axon makes bodycam equipment, Tasers and law enforcement products. Further, the company announced it will buy airspace security leader Dedrone for an undisclosed amount.
Stock Market Today: Biotech Breaks Out
GSK climbed 1.6%, breaking out of a cup base with a 43.84 buy point. It is in the low end of a buy range stretching to 46.03.
The stock has rallied since the company beat its first-quarter profit and sales expectations and raised its 2024 core operating profit outlook on May 1. The U.K.-based pharmaceutical and biotechnology stock climbed to a 52-week high on the stock market today.
Air Lease sank 7.3% after the aircraft leasing company missed revenue and exceeded profit views. Its earnings decreased 18% over the prior year's quarter while sales growth slowed to 4%. The giant drop in heavy volume was a clear sell signal.
Paymentus Holdings got pummeled, falling 13.5% even after the bill payment platform operator announced higher-than-expected earnings and revenue for the first quarter. The disappointment came after the company gave second-quarter and full-year revenue forecasts that fell short of estimates.
Stocks Making Big Moves
Further, Sterling Infrastructure soared 15.8% and broke out of an irregular base on the stock market today as it bypassed the 116.36 buy point. Shares are in the buy zone reaching to 122.18 as it hit a 52-week high.
Sterling's relative strength line also reached a 52-week high as shown by the blue dot on MarketSurge charts. The heavy construction company topped first-quarter profit and sales projections. Sterling specializes in contracting services for highway paving, bridge, water, sewer and light rail projects.
Star Bulk Carriers jumped 5.9%, breaking out of a Stage 3 flat base with a 25.16 buy point. Shares are in the buy zone up to 26.42. The stock and its relative strength line reached 52-week highs. Star Bulk operates vessels that transport commodities, including iron ore, minerals, fertilizers and steel products worldwide. Star Bulk is the IBD Stock Of The Day.
Atkore tumbled 12.5% in large volume and fell sharply below its 50-day line, triggering a sell signal. The maker of electrical and mechanical products missed its fiscal second-quarter sales forecasts but beat profit estimates. Atkore cut its fiscal 2024 profit outlook. Its profits have declined for five straight quarters while sales have dropped for six straight periods.
Futures: Uber, Shopify Plunge, But 3 Stocks Flash Buy Signals
Datadog Falls After Executive Shift
Datadog plunged 11.5% in heavy trading following the company's first-quarter earnings report and an executive move.
The company beat adjusted earnings and sales estimates and gave a 2024 revenue outlook that topped views. But it announced that Amit Agarwal will step down as president at the end of 2024.
The company said in the earnings release that he is expected to join Datadog's board of directors after his departure. The stock fell sharply below its 50-day line, triggering a sell signal, and is now testing its 200-day moving average.
Finally, Vertex gained 1.9% on the stock market today after the cystic fibrosis treatment maker reported higher-than-expected first-quarter profit and revenue. The stock is in a flat base with a 448.40 buy point. It is trying to regain its 50-day line.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
