The Dow Jones Industrial Average fell 0.5% in the first hour of trading Tuesday. Dow tech stocks Salesforce (CRM), Apple (AAPL) and Cisco (CSCO) rose while health care and bank stocks fell.
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Tech stocks led as the S&P 500 drifted into red at the end of the first hour. Nvidia (NVDA), Advanced Micro Devices (AMD) and Microchip Technology (MCHP) all gained.
Homebuilder stocks Lennar (LEN) and DR Horton (DHI) rallied ahead of Thursday earnings.
The Nasdaq and small-cap Russell 2000 fell 0.1% in early trading. Travel and leisure stocks Airbnb (ABNB) and Booking (BKNG) rose.
NYSE volume was lower while Nasdaq volume ticked higher compared to the first hour on Monday.
Crude oil slipped less than 0.5% to trade at $80.67 per barrel. The yield on the benchmark 10-year Treasury note fell 2 basis points to 3.57%.
Stocks Moving Today
Bank of America (BAC) fell despite strong earnings. Net interest income rose 25% as interest rates surged, helping the money center bank to post a strong quarter. Weak bond trading and fewer deals undermined Goldman Sachs (GS) quarterly revenue. Shares were testing the 50-day line after diving over 3%.
Johnson & Johnson (JNJ) fell sharply despite posting a strong quarter. The Dow Jones leader raised its full year earnings outlook to $10.60-$10.70 per share. Sales of its cancer drugs and treatment for Crohn’s disease was strong. Investors may have been disappointed by the lack of clarity on baby powder class action lawsuits.
HSBC raised its Nvidia (NVDA) price target to 355 and upgraded its rating to buy from reduce. The IBD Leaderboard stock jumped 3%. Shares are extended with no clear base or entry yet.
Shares of Google parent Alphabet (GOOGL) continued to slip after falling on Monday on news that Samsung might use Bing rather than Google on its phones. Dow Jones component Microsoft (MSFT) also slipped slightly. GOOGL is back below its buy point of 106.69 while Microsoft is in a buy zone above a base, according to IBD MarketSmith.
Lockheed Martin (LMT) broke out of a flat base after earnings. M/I Homes (MHO) broke out of a cup with handle with a buy point at 63.57. Crocs (CROX) on IBD SwingTrader is approaching an entry at 143.60 with a relative strength line at new highs.
Earnings Deck Outside Dow Jones
Shares of Netflix (NFLX) gained. The streaming giant reports earnings after the close. Analysts are looking for a profit of $2.87 per share. NFLX stock has added more than 12% this year and doubled in price since bottoming out in May 2022.
Shares are in a cup with handle with a potential entry at 349.90. United Airlines (UAL) is on tap as well this evening.
Tesla (TSLA) fell.
On Friday, Tesla chief Elon Musk incorporated a new company that will develop artificial intelligence technologies. Musk helped found OpenAI in 2015 but left it in 2018.The new company, called X.ai, has 100 million shares on offer in a private sale.
Tesla’s earnings are due Wednesday. Also on deck: Morgan Stanley (MS).
Housing starts and building permits declined in March. On Tuesday, the Commerce Department showed that single family housing starts rose 2.7% on a seasonally-adjusted basis. Single family building permits rose 4.1% but multifamily homes fell.
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