The stock market weakened in afternoon trading and tried to bounce off the lows of the day, as Treasury yields reached a 16-year high. Meanwhile, cryptocurrency-related stocks rallied. Tesla gave back all gains and was back in negative territory.
Tesla trimmed 0.5% after the company reported a decline in its third-quarter auto deliveries. Deliveries of 435,059 fell from last year's quarter, but the company warned of further declines due to planned factory shutdowns. Shares are in a cup-with-handle base with a 278.98 buy point. The stock is bumping up against its 50-day moving average.
Stock Market Action
The Nasdaq was creeping up 0.2% in afternoon stock market action. The Dow Jones Industrial Average fell 0.5% and the S&P 500 pulled back 0.4%.
The major indexes remain deep below their 50-day moving averages, with the Dow below its 200-day moving average. The Nasdaq and S&P 500 bounced last week after trending toward their 200-day lines.
The small-cap Russell 2000 lost 1.7%, and remains well below its 200-day line.
Volume rose on the NYSE and fell on the Nasdaq vs. the same time on Friday. Declining stocks outnumbered advancers by roughly 3-1 on the Nasdaq and by more than 4-1 on the NYSE.
The Nasdaq 100-tracking Invesco QQQ Trust ETF gained 0.3%. The Innovator IBD 50 ETF weakened, now down 0.7%.
The benchmark 10-year Treasury yield surged 10 basis points to 4.67%. It is at the highest point this year and highest since July 2007, according to Cboe.com. The rising costs of borrowing are putting pressure on stocks, and this morning's economic data supported the case for higher interest rates for longer.
September's final Purchasing Managers' Manufacturing Index (PMI) reading came in at a higher 49.8 vs. the 48.9 consensus. It measures the private-sector economy by tracking changes in production, new orders, stock levels, employment and prices across manufacturing industries.
The September Institute for Supply Management (ISM) Index of 49.0 came in higher than the 47.8 expected and higher than August's 47.6. The survey queries purchasing managers about general production volumes, new orders, order backlogs, inventories and deliveries.
With a government shutdown avoided, there was another reason for yields to rise. The House and the Senate on Saturday passed a 45-day temporary solution to keep the government open, avoiding a shutdown with hours to spare.
Stock Movers: Crypto Stocks Rally With Bitcoin
Crypto mining stock Riot Platforms surged over 8% in heavy volume and found support at its 200-day line, with today's rise in bitcoin. Bitcoin rallied nearly 4% to over $28,000.
Digital asset miner and blockchain stock Marathon Digital spiked 4.2% in heavy trading, and found resistance at its 200-day line.
Crypto fintech stock Coinbase eased from larger morning gains, now up 1.3%.
IBD 50 stock FTAI Aviation plunged over 4% and sliced through its 50-day line in lighter-than-average trading. The aircraft leasing company reclaimed its 50-day line last week before falling below it today.
Arch Resources trimmed losses but still sold off nearly 10% in heavy volume after the coal mining company lowered its third-quarter adjusted EBITDA forecast by 10% vs. its outlook in Q2. Arch gave a full-year volume forecast in line with previous estimates but raised its cost-per-ton guidance.
Other coal stocks fell in sympathy in stock market action.
IBD 50 stock Consol Energy gapped down over 3% in heavy volume after hitting an all-time high on Friday.
Coal miner Hallador Energy trimmed larger losses, now down 3.6%, while rival Natural Resources lost nearly 3%. The coal energy group is ranked No. 1 out of the 197 IBD industry groups and had gained over 36% this year through Friday's close.
Among oil stocks, Exxon Mobil fell 2% while BP shed 2.4% and Shell pulled back 1.8% as the price of oil eased.
EV stock Rivian pulled back 0.6% after the company announced it produced 16,304 vehicles at its Illinois facility and delivered 15,564 in the third quarter. Shares are in a consolidation with a 28.06 buy point.
Other Stock Market Movers
Discover Financial Services gapped up over 5% in heavy volume and retook its 21-day exponential moving average. The credit card company is the biggest gainer in the S&P 500 Monday.
Insulet popped over 3% after Jefferies upgraded the diabetes care stock to a buy rating from hold but lowered its price target to 240.
Sphere Entertainment soared nearly 14% after the company opened its Sphere venue in Las Vegas with a concert by rock band U2 Friday. Shares are in a consolidation with a 43.93 buy point. The relative strength line hit a 52-week high as shown by the blue dot in its MarketSmith chart.
IBD 50 component Zscaler rallied 3.4% after Piper Sandler upgraded the cloud security stock to overweight from neutral and raised its price target to 190 from 160.
Follow Kimberley Koenig for more stock market news on X, the platform formerly known as Twitter, @IBD_KKoenig.
