The Dow Jones Industrial Average fell as Treasury yields rose. Three of the stocks including Coinbase (currency), despite Cathy Wood buying the shares. Ali Baba (Baba) Went on a magic carpet trip in a while apple (AAPL) And Microsoft (MSFT) He falls. micron technology (mo) loss of earnings views.
A couple of noteworthy stocks have tried to break out despite the hard work. both of them CGI (Gulf International Bank) And Sophos Brands (sofo) Points of purchase have been tested, without success.
Treasury yields continued to rise. The 10-year yield increased by 3 basis points to 3.56% while the two-year yield increased by 10 basis points to 4.06%. The yield curve remains inverted, which is a classic indicator of a recession.
Energy stocks got a boost with WTI rising 0.8% to more than $73 a barrel. It continues to pull away from the recent lows.
Nasdaq Falls, IBD 50 Lags
The Nasdaq closed off its lows for the day but was still down 0.5%. EV stock Lucid (LCID) underperformed here with a decline of 7.2%.
The S&P 500 also fell, despite rallying to the close. It fell 0.2%. It continues to lag behind the 50-day moving average. Humana (Hmm) was lagging behind here as it slipped 4.7%.
The S&P 500 sectors ended the session mixed, with the Energy and Industrial sectors notching the best gains. Communications, health and technology services suffered.
Small caps barely fell, as Russell 2000 fell 0.1%. Growth stocks have suffered the most, with the Innovator IBD 50 ETF (fifty) decreased by 1.5%.
Dow Jones today: Microsoft and Apple are down again
The Dow Jones Industrial Average also fell, though not as sharply as other major indices. It closed down less than 40 points, or 0.1%.
Microsoft resisted as the close approached, but it still fell 0.4% as shares of major technology companies continued to give up some recent gains. Ground lost at entry 276.86, MarketSmith’s analysis appears.
Apple also suffered, down 0.4%. Despite this, it is still clear of the 50-day and 200-day moving averages. It also managed to end the session above the 10-day line.
American Express (AXP) was the worst stock on the Dow Jones day, down 2.4%. Walgreens Boots Alliance (WBA) led the upside with a gain of 2.7%.
These stocks are struggling despite Cathy Wood’s purchases
Renowned money manager Kathy Wood is never afraid to buy on the dip, but the strategy had mixed luck with three new buys on Tuesday.
Cryptocurrency Coinbase reversed higher, gaining 0.8%. It is trading near the 50-day moving average. Wood’s featured ETF ARK Innovation (ark) more than 32,000 shares on Monday.
This came in the form of Bitcoin, the most popular digital currency of all time, which also reversed to the upside. It also rose 0.8% and remains up nearly 65% for the year.
Teladoc Health (TDOC) was down 1%, although it closed slightly off today’s lows. It is trading below its major moving averages. ARKK added more than 18,000 shares.
Joby Aviation (Function) also fell by 1%, although it was also lower. ARK Autonomous Technology & Robotics ETF (ARKQ) bought 448,000 shares. This cheap stock does not meet CAN SLIM standards.
Alibaba stock goes on Magic Carpet Ride
BABA stock jumped after news of it being split into six separate business groups. Investors seem excited about the fact that each of these groups could go public to raise outside funding.
The six are: Cloud Intelligence, Cloud Commerce, Local Services, Cainiao Smart Logistics, Global Digital Commerce and Digital Media and Entertainment Group.
Each group will have its own board of directors and chief executive officer. A statement issued by the company stated that this step “aims to unleash shareholder value and enhance competitiveness in the market.”
Chinese stocks rose 14.3%, sending investors riding the magic carpet in the process. Alibaba stock is now up 7% so far in 2023.
Miss Micron Earnings; MU stock is late
chip giant micron technology (mo) up slightly after the close after earnings.
The stock closed lower heading into its report, down about 1%. But in extended trading, it’s up about 2%. It is testing support at the 50-day moving average. The memory chip maker is up nearly 18% so far in 2023.
Micron’s earnings per share were seen falling from $2.14 last year to a loss of 67 cents this year, according to Zacks Investment Research. Revenue was expected to drop 52% to $3.76 billion.
Instead, the Boise, Idaho-based company lost 1.91 adjusted cents per share on sales of $3.69 billion.
Micron makes two types of memory chips: DRAM and Nand. DRAM chips serve as main memory in computers, servers, and other devices, and work closely with CPUs. Nand flash chips provide long-term data storage.
Outside Dow Jones: These stock test entries
Since the stock market is currently in a correction, now is the time to add to watchlist instead of buying stocks. Any purchases now carry additional risks.
However, IT outsourcing comes into play CGI (Gulf International Bank) briefly cleared the 94.10 flat base entry. It has since fallen below that level. Overall performance is strong here, with the stock earning an IBD composite rating of 91 out of 99.
Play packaged food Sophos Brands (sofo) Its RSI line saw new highs as it tested 16.93 buy points at the base of the saucer. Close below this level. This is the first stage pattern. Early stage rules are more likely to work.
Please follow Michael Larkin on Twitter at @employee For further analysis of growth stocks.
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