Dow Jones Rises Amid Key Economic Data; Spotify Plunges On Earnings
AdamSummary:
The Dow Jones rose slightly amid mixed economic data and earnings reports. Spotify plunged on weak results, while Tesla, Nvidia, and Amazon declined. Housing and jobs data drew investor attention.
The Dow Jones Industrial Average and other major stock indexes traded mixed Tuesday, as Wall Street reacted to a number of key economic reports. In stocks, Nvidia (NVDA) and Tesla (TSLA) declined, while Spotify (SPOT) plunged on earnings.
After the opening bell, the Dow Jones Industrial Average rose 0.3%, while the S&P 500 dropped 0.2%. The tech-heavy Nasdaq composite lost 0.4%.
The 10-year Treasury yield ticked higher to 4.22% early Tuesday. Meanwhile, oil prices dropped, as West Texas Intermediate futures traded near $60.90 per barrel.
Among exchange traded funds, the Invesco QQQ Trust (QQQ) fell 0.4%, while the SPDR S&P 500 ETF (SPY) moved down 0.3% after the open.
Tesla stock declined 1.4% in early action Tuesday, looking to extend a win streak to six sessions. Shares bullishly climbed above their 50-day moving average line Friday, and are now testing their 200-day line, the next resistance level to watch. Led by Elon Musk, the electric-vehicle maker remains nearly 42% off its record high of 488.54, reached on Dec. 18.
Nvidia stock lost 0.3% in morning action Tuesday. Shares of the artificial intelligence giant snapped a four-day win streak Monday, finding resistance around their 10-week line, an important area to watch.
Finally, Spotify stock plunged nearly 7% after the music streaming giant reported more subscribers than expected in the first quarter but badly missed on earnings and revenue in the period. Shares threatened to trigger the 7% loss rule from a 621.20 buy point.
Stock Market Today: Economic Data, Earnings Movers
On the economic front Tuesday are a pair of housing reports: the Case-Shiller index and the Federal Housing Finance Agency, or FHFA home price index. Also on the agenda are new consumer confidence numbers and the Job Openings and Labor Turnover Survey, or JOLTS report.
February's Case-Shiller index rose 0.4% on the month, meeting estimates, with an annual increase of 4.5%, just below the 4.7% Econoday estimate. The FHFA home price index rose just 0.1% in February, below the 0.3% expected rise.
The Conference Board's confidence report, on tap for 10 a.m. ET, is expected to fall to 87.5 in April from 92.9 in March. Finally, the JOLTS report is expected to show job openings down at 7.464 million in March after declining to 7.568 million in February amid rising business uncertainty. That report is also due at 10 a.m.
In stocks, AstraZeneca (AZN), Coca-Cola (KO), General Motors (GM), Honeywell (HON), PayPal (PYPL) and Pfizer (PFE) were key earnings movers Tuesday.
Shares of AstraZeneca added 0.3% in morning trading, while Coca-Cola stock declined 1%. General Motors stock skidded nearly 3%, while Honeywell shares surged more than 4%. PayPal stock climbed 1.3%, as Pfizer shares lost 0.5% in early morning action.
Elsewhere, Hims & Hers Health (HIMS) soared nearly 28% after the company reached a deal with Novo Nordisk (NVO) to sell its Wegovy drug in the U.S.
Dow Jones Extends Rally
On Monday, blue chips on the Dow Jones Industrial Average moved up 0.3%, or 114 points, while the S&P 500 edged higher and the Nasdaq lost 0.1% to snap a four-day win streak.
Due to current market volatility, now is an important time to read IBD's The Big Picture column for how to handle the current market and to track the updated exposure level.
Among the best companies to watch in the current stock market are CrowdStrike (CRWD), MercadoLibre (MELI), Penumbra (PEN) and Guidewire (GWRE).
Along with Apple (AAPL) and Nvidia, Dow Jones components making notable moves this week were Amazon.com (AMZN), Microsoft (MSFT) and Boeing (BA).
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Dow Jones Stocks: Boeing Nears Buy Point
Shares of Dow Jones component Boeing gained 0.8% Tuesday after approaching a double-bottom entry at 184.40 Monday, according to MarketSurge chart analysis.
Outside the Dow, cybersecurity leader and new IBD Leaderboard stock CrowdStrike is adding to breakout gains past a 400.02 buy point in a cup with handle, according to IBD MarketSurge chart analysis. Shares rose 0.4% Tuesday morning.
E-commerce giant MercadoLibre is just above a 2,202 buy point in a double bottom, according to IBD MarketSurge. MercadoLibre stock added 0.5% Tuesday.
Penumbra also broke out last week, topping a 288.57 double-bottom entry. Its relative strength line is at new highs, triggering the blue dot on the IBD MarketSurge chart. That's a bullish indicator of market leadership. Shares dropped 0.7% Tuesday.
Finally, Guidewire is rapidly nearing a 201 buy point in a double bottom, finishing Monday just below the buy trigger. Guidewire stock gained 0.9% in early morning trades.
Dow Jones Leaders: Amazon, Apple, Microsoft
Magnificent Seven stocks are rebounding from lows as Wall Street reacts to the fallout from President Donald Trump's tariffs. One of them, Dow Jones component Amazon, dropped 2% early Tuesday after the White House called Amazon's plan to post the cost of tariffs a "hostile and political act." First-quarter earnings results are expected out late Thursday.
IPhone maker Apple sank 0.4% Tuesday morning. Shares closed Monday at their highest level since early April. Earnings are due out Thursday after the close.
Finally, software giant Microsoft dipped 0.4% Tuesday. Shares are above their 50-day line for the first time since late January, with the company set to report earnings Wednesday evening.
source : investors
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