The Dow Jones Industrial Average fell Monday amid spiking yields even after Goldman Sachs (GS) beat views. Meanwhile, Tesla (TSLA) fell after Chief Executive Elon Musk said massive job cuts are coming, as Trump Media & Technology (DJT) also sank. And Apple (AAPL) and Nvidia (NVDA) both fell on the stock market today despite bullish Wall Street calls.
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Also, a trio of noteworthy stocks were digging in near entries: KLA (KLAC), Lam Research (LRCX) and Heico (HEI).
Stocks initially moved higher after Israel successfully repelled a strike from Iran over the weekend. Israeli Defense Forces chief of staff Herzi Halevi said the attack “will be met with a response.”
In economic news, U.S. retail sales were stronger than expected. March retail sales rose 0.7% overall compared with expectations for a 0.3% increase. They were up 1% excluding autos and gas, also above views. February’s overall gain was revised up to 0.9%.
“While the strong sales growth is a good sign for economic growth in the quarter, the surge in consumer spending could contribute to high consumer prices and cause additional inflation,” Commonwealth Financial Network senior investment strategist Sam Millette said in a note to clients. “Bond yields rose immediately following the release due to rising concerns off a potential no-landing, no-rate-cut scenario.”
Gains Fade For S&P 500, Nasdaq Slides
In afternoon trade, the Nasdaq composite fell about 1.7%. Trade Desk (TTD) and Atlassian (TEAM) were among the laggards, both dropping almost 6%.
The benchmark S&P 500 also saw gains melt away as it fell more than 1%. Regional bank M&T Bank (MTB) popped nearly 4% despite an earnings miss. The stock is nearing a 148.23 flat-base entry, MarketSurge analysis shows.
The S&P 500 sectors were all negative. Real estate and technology were giving up the most ground. Health care and consumer staples held up best on the stock market today
Small caps reversed lower, with the Russell 2000 skidding 1.4%. Growth stocks also got mauled, with the Innovator IBD 50 ETF (FFTY) falling nearly 2%. Breadth was weak, with decliners leading advancers by more than 2-to-1 on the New York Stock Exchange and nearly 3-to-1 on the Nasdaq.
Yields rallied strongly again after Friday’s flight to safety. The 10-year Treasury note soared 13 basis points to 4.63% while the 30-year jumped 14 basis points to 4.74%. The five-year yield popped 11 basis points to 4.65% while the two-year climbed 5 basis points to 4.94%.
Dow Jones Today: Goldman Sachs Earnings Pop
Early gains were a faint memory for bull as the Dow Jones reversed more than 200 points lower. It was down 0.6% in recent action.
Goldman Sachs stock was the best performer, rising nearly 3% after the banker reported first-quarter earnings that were well above Wall Street views. Strength in its trading and investment banking businesses fueled the beat.
Intel (INTC) and UnitedHealth (UNH) also shined, rising more than 1% each.
Salesforce (CRM) was the worst performer on the Dow Jones index and the S&P 500 Monday as it tumbled nearly 6% in early action. The stock is on pace for its worst day since Dec. 5, 2022, according to Dow Jones Market Data.
Salesforce is in advanced talks to acquire Informatica (INFA), the Wall Street Journal reported.
Stock Market Today: Donald Trump Stock Dives On This
The rocky ride continues for Trump Media & Technology investors. On Monday, shares plunged another 17% as the company said it planned to issue more shares.
While this is not uncommon for SPAC stocks, the addition of 21.5 million shares will put more than 15% in additional float on the market. Such dilution is never a way to win over shareholders.
Those who bought the Donald Trump stock at recent highs are nursing painful losses. Trump Media stock is now down around 66% from the stock’s 2024 high, which it touched on March 26.
People who hung on after purchasing Trump Media at its all-time high of 175 — reached in October 2021 when it was still Digital World Acquisition — have lost nearly 85% of their money.
The Truth Social parent also is struggling on a technical basis. Monday’s move means it now sits about 38% below the key 50-day moving average, MarketSurge analysis shows. It could soon test the 200-day line to boot.
As if that wasn’t enough, Trump’s hush-money trial began in New York Monday. This is the first time that a U.S. president has faced a criminal trial.
Cathie Wood Buys On Stock Market Today
Warren Buffett once said that investors should “be fearful when others are greedy and to be greedy only when others are fearful.”
That was certainly the case with ARK Invest Chief Executive Cathie Wood, who used Friday’s sharp drawdown to snap up plunging stocks.
Her firm, where she also serves as chief investment officer, snapped up more than 308,000 shares in Recursion Pharmaceuticals (RXRX) for the ARK Innovation (ARKK) exchange traded fund on Friday. It currently sits around 50% below its Feb. 27 high of 15.74 and has undercut the 200-day line. IBD does not recommend buying issues priced below 10 or in downtrends.
The fund also bought nearly 40,000 Roku (ROKU) shares on Friday for the ARK Innovation Fund.
Roku stock is currently stuck below its 50-day and 200-day moving averages, MarketSurge analysis shows. On the stock market today, shares sat just over 46% off their high of 108.84 reached Dec. 14.
Other moves made by the swashbuckling Wood included purchases of Teledoc Health (TDOC) and 10X Genomics (TXG).
Trying to catch a falling knife can be tempting, but often leaves investors nursing losses. Investor’s Business Daily recommends buying stocks with strong earnings and price performance. Look for leaders in strong industries that are showing superior earnings growth and sales. The IBD 50 is a rich hunting ground for such issues.
Magnificent Seven: Tesla Falls As Elon Musk Makes Move
The so-called Magnificent Seven were all lower heading into the close Monday.
Tesla stock fell almost 5% despite news it is looking to ax more than 10% of its global workforce as it chases growth. It lost more ground on its 50-day moving average, according to MarketSurge analysis.
Musk said in a leaked memo that the massive cuts are necessary due to “duplication of roles and job functions.” According to the firm’s annual report, it had 140,473 employees as of December 2023.
“There is nothing I hate more, but it must be done,” Musk said “This will enable us to be lean, innovative and hungry for the next growth phase cycle.”
A reported halt of Cybertruck deliveries may also be weighing on Tesla stock. Shares have plunged roughly a third so far in 2024.
Apple Stock Takes Another Hit
Fellow Magnificent Seven component Apple was also lower on the stock market today, falling nearly 2%. This was despite Morgan Stanley reiterating an overweight rating on shares. Apple stock is testing potential resistance at its 50-day line.
The Dow Jones stock was hit after iPhone shipments fell 9.6% in the January-to-March period vs. a year earlier, according to IDC estimates released Sunday.
Meta Platforms (META) reversed lower as it fell 2.5%. Microsoft (MSFT) was down almost 2% amid the tech rout.
Leaderboard stock Nvidia saw early gains fade and fell nearly 1%. Citi issued a “positive catalyst watch” on Nvidia stock and said investors should buy on any weakness.
Amazon.com (AMZN), and Google-parent Alphabet (GOOGL) both fell more than 1% each.
Stock Market Today: Three Stocks Near Entries
Amid the negative action on the stock market today, it is a good time to look for stocks nearing breakouts for one’s watchlist.
Chip equipment stock KLA was slightly positive. It is gaining ground on an entry of 729.15 out of a third-stage flat base, MarketSurge analysis shows.
Lam Research reversed slightly lower, but is continuing to trade tightly. It is nearing a flat-base entry of 1,000.39. This is also a third-stage pattern, which is between early and late stage.
Its earnings performance is not ideal, but Lam Research is among the top 6% of stocks in terms of price performance over the past 12 months.
Finally, aerospace play Heico remained up nearly 2% as it chases a flat-base buy point of 200.64. This is a first-stage base, which means it is more likely to net big gains. The stock’s EPS Rating comes in at 83 and it boasts strong institutional support.
Please follow Michael Larkin on X, formerly known as Twitter, at @IBD_MLarkin for more analysis of growth stocks.
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