The Dow Jones Industrial Average fell on Monday amid rising yields even after Goldman Sachs (G.S.) surpass the views. Meanwhile, tesla (TSLA) fell after CEO Elon Musk said massive job cuts are coming as Trump media and technology (DJT) also sank. AND Apple (AAPL) and NVIDIA (NVDA) both fell in the stock market today despite bullish forecasts from Wall Street.
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Additionally, a trio of notable stocks were sweeping nearby entries: ELK (CLUTCH), Lam Research (LRCX) and Hello (HERE).
Shares initially rose after Israel successfully repelled an attack by Iran over the weekend. Israel Defense Forces Chief of Staff Herzi Halevi said the attack "will receive a response."
In economic terms, retail sales in the United States were stronger than expected. March retail sales rose 0.7% overall, compared with expectations for a 0.3% increase. They rose 1% excluding cars and gasoline, also above views. February's overall gain was revised up to 0.9%.
"While strong sales growth is a good sign for economic growth in the quarter, increased consumer spending could contribute to high consumer prices and cause additional inflation," said senior investment strategist at Commonwealth Financial Network, Sam Millette, in a note to clients. "Bond yields rose immediately after the release on growing concerns about a possible no-landfall, no-rate-cut scenario."
Gains fade for S&P 500 and Nasdaq slides
In afternoon trading, the Nasdaq composite fell about 1.7%. Trading Desk (TTD) and Atlassian (EQUIPMENT) were among the laggards, with both falling nearly 6%.
The benchmark S&P 500 index also saw its gains fade, falling more than 1%. regional bank M&T Bank (MTB) rose nearly 4% despite missing earnings. The stock is approaching a flat base entry of 148.23, MarketSurge Analysis Shows.
The S&P 500 all sectors were negative. The real estate and technology sectors were losing the most ground. Healthcare and consumer staples outperformed the stock market today
Small-cap stocks retreated lower, with the Russell 2000 falling 1.4%. Growth stocks also came under attack, with the Innovator IBD 50 ETF (FFTY) falling almost 2%. Breadth was weak, with declines leading positives by more than 2 to 1 on the NYSE and almost 3 to 1 on the Nasdaq.
Yields rebounded strongly again after Friday's flight to safety. The 10-year Treasury bond jumped 13 basis points to 4.63%, while the 30-year bond jumped 14 basis points to 4.74%. The five-year yield rose 11 basis points to 4.65%, while the two-year bond rose 5 basis points to 4.94%.
Dow Jones Today: Goldman Sachs Earnings Pop
The early gains were a faint memory for bulls as the Dow Jones retreated more than 200 points lower. It was down 0.6% in recent actions.
Goldman Sachs shares were the best performer, rising almost 3% after the banker reported first quarter earnings which were far above the opinions of Wall Street. The strength of its commercial and investment banking businesses drove the pace.
Intel (INTC) and UnitedHealth (UNH) also shined, rising more than 1% each.
Sales force (CRM) was the worst performer on the Dow Jones Index and S&P 500 on Monday, falling nearly 6% in early stocks. The stock is on track for its worst day since Dec. 5, 2022, according to Dow Jones Market Data.
Salesforce is in advanced conversations acquire computing (INFA), reported the Wall Street Journal.
Stock market today: Donald Trump's shares sink on this
The difficult road continues for Trump Media & Technology investors. On Monday, shares plunged another 17% when the company said it planned to issue more shares.
While this is not uncommon for SPAC stock, the addition of 21.5 million shares will put more than 15% additional float on the market. This dilution is never a way to win over shareholders.
Those who bought Donald Trump's stock at recent highs are suffering painful losses. Trump Media shares are now down about 66% from the 2024 high, which it reached on March 26.
People who held out after buying Trump Media at its all-time high of 175, reached in October 2021 when it was still Digital World Acquisition, have lost almost 85% of their money.
Truth Social's parent company is also having problems on a technical level. Monday's move means it is now about 38% below the key 50-day moving average. MarketSurge Analysis Shows. For starters, you might soon test the 200-day line.
As if that were not enough, Trump's secret money trial began in New York on Monday. This is the first time an American president has faced a criminal trial.
Cathie Wood buys the stock market today
Warren Buffett once said that investors should "be fearful when others are greedy and be greedy only when others are fearful."
That was certainly the case for ARK Invest CEO Cathie Wood, who took advantage of Friday's sharp drop to rally the sagging stock.
Her company, where she also serves as investment director, acquired more than 308,000 shares in Recursion Pharmaceuticals (RXRX) for ARK Innovation (ARKK) exchange-traded fund on Friday. It currently stands around 50% below its February 27 high of 15.74 and has undermined the 200-day line. IBD does not recommend buying issues with prices below 10 or in downward trends.
The fund also bought about 40,000 Year (YEAR) shares on Friday for the ARK Innovation Fund.
Roku stock is currently stuck below its 50-day and 200-day moving averages. MarketSurge Analysis Shows. In the stock market today, shares are just over 46% away from their high of 108.84 reached on December 14.
Other moves made by Wood's swashbuckling included purchases of Teledoc Health (TDOC) and Genomics 10X (TXT).
Trying to catch a falling knife may be tempting, but it often leaves investors suffering losses. Investor's Business Daily recommends buying stocks with strong earnings and price action. Look for leaders in strong industries that show superior profit and sales growth. He IBD 50 It is a rich hunting ground for these issues.
The Magnificent Seven: Tesla Falls as Elon Musk Makes a Move
The so-called Magnificent Seven were all down heading into Monday's close.
Tesla Stock Dropped Nearly 5% Despite Expected News lay off more than 10% of its global workforce while pursuing growth. He lost more ground in his 50 day moving averageaccording Analysis of the market surge.
Musk said in a leaked memo that the massive cuts are necessary because of the "duplication of job roles and functions." According to the firm's annual report, it had 140,473 employees as of December 2023.
"There's nothing I hate more, but it has to be done," Musk said. "This will allow us to be agile, innovative and eager for the next phase of the growth cycle."
Cybertruck deliveries reportedly stopped It may also be weighing tesla stock. Shares have plunged by about a third so far in 2024.
Apple Stock Takes Another Hit
Apple, also a member of the Magnificent Seven, also fell in the stock market today, falling almost 2%. This came despite Morgan Stanley reiterating an overweight rating on the stock. Apple stock is testing potential resistance at its 50-day line.
Dow Jones stocks took a hit after iPhone shipments fell 9.6% in the January-March period compared to a year earlier, according to IDC estimates released Sunday.
Metaplatforms (GOAL) reversed the downward trend, falling 2.5%. microsoft (MSFT) fell almost 2% amid the technological decline.
Leaderboard Actions Nvidia saw its early gains fade and fell nearly 1%. Citi issued a "positive catalytic watch" on Nvidia stock and said investors should buy on any weakness.
Amazon.com (AMZN) and Google-father Alphabet (GOOGLE) both fell more than 1% each.
Stock market today: three stocks close to entering
Amid the negative action in the stock market today, it's a good time to look for stocks approaching a breakout for your watch list.
KLA chip equipment stock was slightly positive. It is gaining ground with an entry of 729.15 from a flat base of the third stage, MarketSurge analysis shows it.
Lam Research retreated slightly lower, but continues to trade strongly. It is approaching a flat base entry of 1,000.39. This is also a third stage pattern, which lies between the early and late stages.
Its earnings performance isn't ideal, but Lam Research is among the top 6% of stocks in terms of price performance over the trailing 12 months.
Finally, aerospace play Heico held on for a nearly 2% gain as it searches for a flat base buy point at 200.64. This is a first stage foundation, which means you are more likely to make big profits. The stock's EPS Rating is 83 and it has strong institutional backing.
Follow Michael Larkin on X, formerly known as Twitter, at @IBD_MLarkin for more growth stock analysis.
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