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Major indexes hit session lows at 10:30 a.m. ET Tuesday after more economic data was released. The Dow Jones Industrial Average shed 250 points and was down 0.8%. The index is at risk of breaking support at its 200-day line.
X
The S&P 500 and the Nasdaq fell a steeper 1% in the stock market today.
Volume on the NYSE was lower and higher on the Nasdaq compared with the same time Monday.
The small-cap Russell 2000 pared some early losses and was down 0.5%.
The Innovator IBD 50 (FFTY) ETF fell 0.7%.
The yield on the benchmark 10-year Treasury note continued to stay around multiyear highs even after falling 2 basis points to 4.51%. On Monday, Treasury yields hit levels last seen in 2007, before the housing market crash of 2008.
The Conference Board’s September consumer confidence survey number fell to 103, a four-month low, from a revised 108.7 the previous month. Economists had expected 105.8 in the latest survey.
The Case-Shiller Home Price Index for July came in higher at 0.9% versus consensus of 0.7% and unchanged from June. The Federal Housing Finance Agency’s House Price Index also rose to 0.8% in July, after June’s revised 0.4% gain. New home sales for August were 675,000, lower than the consensus view of 699,000 and July’s 714,000, according to Econoday.
Late Monday, ratings agency Moody’s warned that a government shutdown could be “negative” for U.S. credit ratings. In August, Fitch downgraded U.S. credit to AA+ from AAA.
Friday’s Personal Income and Outlays for August is another key economic report. The PCE Price Index is expected to show a 0.5% reading, after July’s 0.2%. On an annual basis, Wall Street expects it to rise to 3.5% from July’s 3.3%.
Dow Jones Stocks
Apple (AAPL) fell with most other stocks in the Dow. Merck (MRK) managed to notch a small gain in early trading as did Intel (INTC). Apple top executive Eddy Cue is set to testify in the Alphabet (GOOGL) antitrust hearing Tuesday.
Costco (COST) will report its August-ended quarter earnings after the market close. Comparable sales fell in the third quarter but rose in July and August. E-commerce sales continued to lag in August. The stock, down slightly today, offers an entry at 571.21 in a flat base.
Progress Software (PRGS) will also report at the market close. PRGS is falling below long-term support at the 200-day line.
Late Thursday, cosmetics maker Coty (COTY) issued 33 million shares and announced it had submitted an application for dual listing on the Paris stock exchange. Shares fell below the 50-day line on Tuesday but the stock continues to form a cup base.
Some oil stocks are surviving the market carnage, especially in the energy sector. Helmerich & Payne (HP), ChampionX (CHX) and Valaris (VAL) in the growth 250 are holding their 50-day lines.
Cintas (CTAS) is the worst performer in the IBD 50 index as it dives below its 50-day line. Argenx (ARGX) gapped down nearly 6% and has fallen below the 50-day line.
Among EV plays, Tesla (TSLA) rival Fisker (FSR) surged over 15% and retook its 50-day line after Bank of America analysts reinitiated coverage with a buy rating. The company announced Tuesday it plans to ramp up deliveries to 300 a day.
Tesla Faces New Probe
Tesla reversed higher despite reports of a possible probe into the EV maker’s China exports by the European Union. MarketWatch reported the EV leader likely benefited from Chinese subsidies and may have to face measures to correct the advantage. A handle entry of 278.98 for TSLA stock remains valid for now.
Analysts at JPMorgan upgraded DraftKings (DKNG) to overweight from neutral with a price target of 37, up from 26. Shares are trying to break a five-day losing streak, up 4%, but the stock remains below the 50-day line.
United Natural Foods (UNFI) plummeted more than 21% in heavy volume after quarterly results disappointed. Sales of $7.4 billion rose 2% from the prior year same quarter and showed deceleration. A loss of 25 cents per share showed the wholesaler’s reversal from profitability vs. the year-ago period.
Please follow VRamakrishnan on X/Twitter for more news on the stock market today.
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