The Dow Jones Industrial Average and other major indexes struggled near the day’s lows in afternoon trades as more earnings rolled in Friday, with stocks feeling the effect of Adobe‘s (ADBE) earnings-induced troubles. Nvidia bucked the tide, however, and rose ahead of a key artificial intelligence event while Tesla (TSLA) fell further on the stock market today
X
The Dow fell 0.6%, while the S&P 500 tumbled 0.7%. The tech-heavy Nasdaq took the brunt, as it dropped 1% and was on track for its first back-to-back weekly losses since early November.
After a steep decline on Thursday, small caps fared slightly better. The Russell 2000 gained 0.2% in afternoon trades. Meanwhile, options were set to expire Friday, which will likely lift trading volume.
In economic news, the Empire State Manufacturing Index’s measure of manufacturing activity in March contracted to -20.9. Economists expected a fall to -8. Further, the University of Michigan’s consumer sentiment survey came in at 76.5 for March. The survey was expected to come in at 77.3, according to Econoday.
Also on the economic front, investors await Federal Reserve Chairman Jerome Powell’s remarks. Powell is due to speak Wednesday, amid sentiment that interest rates are expected to stay the same.
Volume on the New York Stock Exchange and on the Nasdaq was higher compared with the same time on Thursday. Breadth was mixed. On the New York Stock Exchange, decliners outnumbered advancers but on the Nasdaq, the reverse held true.
The Innovator IBD 50 (FFTY) exchange traded fund bucked the sell-off tide and rose 0.6% on the stock market today.
The yield on the benchmark 10-year Treasury note rose 1 basis point to 4.31%.
Dow Jones Stocks
Nike (NKE) fell 0.7% as it heads into earnings next week. Shares are also in a downtrend as they face resistance at the 50-day moving average, according to IBD MarketSurge. The shoe and sports apparel maker became the latest short position on IBD SwingTrader.
Tech stocks in the Dow sold off while Boeing (BA) and Caterpillar (CAT) were slightly higher.
Stock Market Today
Adobe fell 14% after its results. Shares had fallen below the 50-day moving average ahead of earnings, then dived below the 200-day line on Friday.
GigaCloud Technology (GCT) soared 24% after reporting a strong quarter and upbeat outlook. The IBD 50 stock is extended.
Among the “Magnificent Seven” stocks, Nvidia (NVDA) rose and broke a two-day losing streak on the stock market today. The AI chip leader will hold the GTC 2024 conference for artificial intelligence developers next week. Nvidia is a holding on the Investors Business Daily IBD Leaderboard model portfolio.
Meanwhile, Tesla tried to keep from sinking even lower. The electric-vehicle giant hovered around the break-even line in afternoon trades.
On The Earnings Deck
In computer tech services, Accenture (ACN) has formed a three-weeks-tight pattern as it tests the 50-day moving average ahead of earnings next week. In retail, apparel maker Lululemon (LULU) is in a flat base with an early entry at 474.17, according to IBD MarketSurge. The company reports its fourth-quarter results on Thursday.
Elsewhere, Darden Restaurants (DRI) offers a similar pattern with an entry at 176.84 ahead of third-quarter results next week. Homebuilder stock KB Home (KBH) is in a buy zone from a flat base’s buy point of 64. First-quarter earnings are due Wednesday.
Enterprise software stock Smartsheet (SMAR) fell 7% after the company’s sales outlook for the current quarter suggested further deceleration. Sales have been slowing over the past seven quarters.
Outside the Dow Jones, among electronics contract manufacturers, mixed results and a weak outlook sent Jabil (JBL) 16% lower in the stock market today. Shares have gapped down below the 50-day moving average. Specialty retail stock Ulta Beauty (ULTA) also fell on a soft outlook.
Finally, an approval from the FDA for its drug to treat a type of fatty liver disease helped Madrigal Pharmaceuticals (MDGL). Shares of the drug stock soared 13% on the stock market today.
Please follow VRamakrishnan on X/Twitter for more news on the stock market today.
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Eugen Boglaru is an AI aficionado covering the fascinating and rapidly advancing field of Artificial Intelligence. From machine learning breakthroughs to ethical considerations, Eugen provides readers with a deep dive into the world of AI, demystifying complex concepts and exploring the transformative impact of intelligent technologies.
