The major stock market indexes closed mostly lower on Monday as the last trading week of the second quarter got under way. The Russell 2000 Index closed higher after a five-day losing streak, while the Dow Jones couldn't quite get in the green.
The Nasdaq dropped 1.2%, as the indexes deteriorated in the last hour of trading. The Dow Jones Industrial Average inched lower by less than 0.1% to make a six-day losing streak. The S&P 500 lost 0.5%.
The Russell 2000 showed relative strength and rose 0.2%.
The Nasdaq 100-tracking Invesco QQQ Trust ETF fell 1.3%. The First Trust Nasdaq 100 Equal Weighted ETF trimmed 0.1%.
The Innovator IBD 50 ETF fell 1.5%, lagging the market indexes. NYSE and Nasdaq volume were lower compared with the same time on Friday, in preliminary numbers.
The 10-year U.S. Treasury yield shed 2 basis points to 3.72%. The CME FedWatch Tool showed over 76% odds for a quarter-point hike at the July Fed meeting.
Crude oil rose 0.6% to $69.58 per barrel. The price of bitcoin retreated 2.6% to $30,315.
Stock Market Action: Swiss Shoe Stock Jumps
Swiss-based footwear maker On Holding surged 2.9% and reclaimed its 50-day line. The stock has some powerful partnerships including retired tennis legend Roger Federer as well as some newcomers.
Analysts expect 80% earnings growth this year and 23% next year. The Leaderboard Leader Watchlist stock has gained over 80% this year so far.
CarMax sold off 5.8%, giving back more than half of Friday's 10.1% gain following its better-than-expected fiscal first quarter earnings report.
The stock is extended after clearing the 73.57 buy point of a cup-with-handle base.
Truist Securities raised its price target on the used-car retailer to 82 from 64 while keeping its hold rating. Meanwhile, RBC Capital raised its price target to 90 from 70 and maintained its outperform rating.
Pfizer slid 3.7% in heavy volume after reporting it will discontinue development of its weight loss drug lotiglipron. Instead, it will move ahead with a twice-daily pill called danuglipron. At least one analyst called it a setback for Pfizer, saying "It's not the best shot they had."
Cruise Line Stocks Sink
Carnival stock gapped down 7.6% in heavy volume despite reporting a smaller-than-expected loss and higher revenue for its May-ended quarterly results.
Its booking trends are bullish. Management expects over 100% occupancy for this year and 107% in the upcoming August-ended quarter. Occupancy rate can exceed 100% if cabins are booked with more than the two-person capacity, as in the case of parents including a child or two in their room.
IBD 50 stock Norwegian Cruise Line Holdings fell 4.5% while Royal Caribbean Group dropped 0.7% in sympathy with Carnival. Both stocks improved slightly from larger earlier losses.
Carnival stock had reached a 20% profit zone from a 12.62 buy point, but is now below that range. The stock is testing its 21-day exponential moving average. CCL is the biggest S&P 500 loser today.
Google parent Alphabet fell 3.3% after UBS downgraded the stock to neutral from a buy rating but raised the price target to 132 from 123.
The analysts expressed concern that Alphabet's AI features could negatively affect its advertising revenue. UBS projects $301.7 billion for full-year 2023 revenue, or about 6.7% over 2022.
GOOGL shares are trading around the 21-day line and are extended from a cup-with-handle 106.59 buy point.
Other Market Movers: AI Stock Plunges
Swiss-based biotech MoonLake Immunotherapeutics pared earlier gains, and closed up 77.6% in enormous volume on positive news on its skin treatment drug in a Phase 2 study.
WSFS Financial rallied 4.8% after D.A. Davidson upgraded the regional bank stock to a buy from a neutral rating and raised its price target to 45 from 38. The stock gapped up as it bounced off the 50-day line.
Uber Technologies popped 2.5% after Bernstein raised its price target to 50 from 45 and maintained its outperform rating on the ride-hailing stock. Uber stock is nearing the 20% profit zone from a 37.58 buy point and is IBD 50's biggest gainer today.
Cloud- and AI-software stock Intapp plunged 13.8% in heavy volume, sending it below its 50-day line. The break of support and fall of more than 7% from the 47.04 buy point are sell signals. There was no news on the company in today's wires.
Tesla Stock Gets Hit Again
Glucose monitor maker Dexcom fell 1.7% despite giving higher 2025 revenue guidance at its Investor Day on Friday. Shares are teetering around the 21-day line and below the 126.44 buy point of a flat base Dexcom cleared two weeks ago.
Moderna got a 1.6% lift after UBS upgraded the biotech to buy from neutral, but lowered its price target to 191 from 221.
IBD Leaderboard and IBD 50 stock Tesla shed 6.1% after another analyst downgrade. This time it was from Goldman Sachs, to neutral from buy with a higher price target of 248 from 185.
Shares of Tesla fell below the 20% profit-taking zone of a cup base with a 207.79 entry.
Follow Kimberley Koenig for more stock market news on Twitter @IBD_KKoenig.
