Dow Jones Falls But Tesla Jumps As Musk Sets ‘Cheap Car’ Target| Investor’s Business Daily
The Dow Jones and other major indexes wavered in afternoon trades Wednesday as Tesla (TSLA) soared on plans for a thriftier car model. Meanwhile, Nvidia (NVDA) and Super Micro Computer (SMCI) gave up early gains, as Facebook-parent Meta Platforms (META) stumbled ahead of its earnings report on the stock market today.
X
A follow-through day for the market seems to be on track in the wake of Monday’s gains, and could happen as early as Thursday. The Dow Jones Industrial Average flirted with break-even ground, but was slightly higher in recent action as the S&P 500 edged up 0.1% on the stock market today. The Nasdaq composite gave back some of its earlier gains but still was ahead by 0.2%.
Volume was lower on the New York Stock Exchange and Nasdaq compared with the same time on Tuesday. Breadth deteriorated, with decliners outnumbering advancers by 2-to-1 on the NYSE and 5-to-3 on the Nasdaq.
After three solid days of gains, the small-cap Russell 2000 fell 0.7%. The Innovator IBD 50 (FFTY) exchange traded fund also gave up robust early gains and was flat.
The yield on the benchmark 10-year Treasury note rose 5 basis points to 4.64%. Bitcoin held near the $65,000 level after its fourth halving.
On the economic front, new orders for durable goods came in higher than expectations in March, up 2.6%. Economists had expected orders to rise 2.3%.
Dow Jones On Stock Market Today
Boeing‘s (BA) first-quarter revenue of $16.6 billion fell 8% from the prior year, while a loss of $1.13 per share beat estimates for a loss of $1.63. But Boeing quickly erased early, hefty gains and fell 1%.
Ahead of its first-quarter report after the market close, IBM (IBM) has formed a flat base, though a buy point of 199.18 is a ways off.
Among other stocks on the Dow Jones index, American Express (AXP) is in a buy zone above an alternative buy point of 231.69. It is featured in stocks near a buy zone. But keep in mind that market risk is higher than normal right now.
Visa (V) gapped up to its 50-day moving average after second-quarter results were announced late Tuesday. The stock broke above a trendline entry around 275, although it has trimmed gains.
Stocks On The Move
Tesla held the bulk of its early gains on the stock market today and was up 10% after first-quarter results came in below views late Tuesday. It was the company’s lowest per-share earnings figure since the first quarter of 2021.
But shares rose after the electric-vehicle giant signaled that a “more affordable car” could be ready as early as later this year or in 2025. The company also set Aug. 8 for the unveiling of its robotaxi.
Chief Executive Elon Musk said that the robotaxi may be the way for the company to bridge autonomous-driving technology and the mass market. That would also indicate that Tesla may enter new markets, including ride-sharing.
Meta Platforms is testing its 50-day moving average ahead of earnings after the market close. Meta is a holding in IBD Leaderboard and also in the IBD MarketSurge Growth 250. Analysts polled by FactSet expect sales to increase 26% to $36.1 billion with earnings up 47% to $4.97 per share.
Also ahead of its report after the closing bell, ServiceNow (NOW) is near its 50-day moving average as it works on a flat base.
Mixed Action Among AI Stocks
Among artificial intelligence plays, IBD Live Watchlist stock Vertiv (VRT) rose on the stock market today after a strong quarter and a raised full-year outlook.
But gains for Super Micro Computer and Nvidia dissipated by the afternoon. Super Micro was slightly down in recent action while Nvidia dropped 1.5%.
Chipotle Mexican Grill (CMG) is just above its 10-week moving average with earnings due after the market close Wednesday. The stock is on the IBD Live Ready list.
In aerospace and defense, General Dynamics (GD) reported sales of $10.7 billion, with earnings of $2.88 per share. The stock slid 5.5% and fell below its 50-day moving average in heavy volume.
A holding of ARK Invest Chief Executive Cathie Wood, Teradyne (TER) met resistance at the 200-day moving average ahead of first-quarter results after the close today. Also reporting later today, gaming company Churchill Downs (CHDN) has retaken its 50-day moving average on the stock market today.
Magnificent Seven stock Alphabet (GOOGL) is in a buy zone ahead of earnings. The search giant is a holding in the IBD 50.
Please follow VRamakrishnan on X/Twitter for more news on the stock market today.
YOU MAY ALSO LIKE:
IBD Live: Learn And Analyze Growth Stocks With The Pros
Learn How To Time The Market With IBD’s ETF Market Strategy
Find The Best Long-Term Investments With IBD Long-Term Leaders
MarketSurge: Research, Charts, Data And Coaching All In One Place
