Dow Jones futures were little changed overnight, along with S&P 500 futures and Nasdaq futures.dow giant united health group (united nations) and johnson & johnson (JNJ) to report early Tuesday morning.
X
Monday morning’s stock market rally tried to rebound, but quickly fell back in another ugly reversal. The S&P 500 and Nasdaq broke through major levels. US Treasury yields rose to 2024 highs amid uncertainty about how Israel will respond to Saturday’s Iranian drone and missile attack.
tesla (TSLA) plummeted amid massive layoffs and a host of other headlines; salesforce.com (CRM) dives into reports that talks to acquire data management software maker are in final stages Informatica (Infa).
meanwhile, Nvidia (NVDA) and microsoft (MSFT), the two megacap AI leaders fell below some key levels on Monday but have yet to break out.
Nvidia stock is on IBD Leaderboard And that IBD50. Microsoft stock is on his IBD long-term leaders list.
Dow Jones futures today
Dow Jones futures fell 0.25% to fair value. S&P 500 futures fell 0.3%. Nasdaq 100 futures fell 0.2%.
The yield on the 10-year US Treasury note fell slightly to 4.61%.
Crude oil futures rose slightly.
China’s economic growth rate in the first quarter was 5.3% compared to the same period last year, exceeding expectations of 4.6% and slightly up from 5.2% in the fourth quarter. Meanwhile, retail sales in March rose 3.1% from a year earlier, and industrial production rose 4.5%, both of which were lower than expected.
As for the U.S. economy, investors will need to know March housing starts and industrial production statistics before investing.
Please note that overnight trades such as Dow futures do not necessarily translate into actual trades in the next regular stock market.
Main income
United Health, Johnson & Johnson, morgan stanley (M.S.) to report early Tuesday morning.
UnitedHealth and J&J stock prices are near their 2024 lows. Morgan Stanley is between its 50-day and 200-day lines after falling last week on reports that regulators were investigating the company’s wealth management business.
IBD experts analyze leading stocks and markets on IBD Live.
stock market rise
Friday’s decline dashed hopes for a stock market rally. Monday was a continuation of that, especially considering the downside reversal from the strong rally.
The Nasdaq and S&P 500 closed below their 50-day lines for the first time since early November, as the stock market rally was just beginning. The Nasdaq fell 1.8%, finally moving out of the April 4 reversal date range. The S&P 500 hit 21-day resistance before falling 1.2% in stock market trading on Monday.
The Dow Jones Industrial Average fell 0.7%, its lowest point since late January. Salesforce stock fell 7.3% as investors didn’t like the talk of the Informatica acquisition.that offset goldman sachs (G.S.), up 2.9% on earnings.
The small-cap Russell 2000 fell 1.4%, hitting a two-month low.
The broader market has been struggling for some time, with Nvidia, Microsoft and other AI and mega-cap giants propping up the Nasdaq. But defeats in the past two sessions are causing these leaders to fall from grace.
The Nasdaq has now suffered three major reversals in the past few weeks, starting with the Nvidia-led selloff on March 8th. In general, the market has rebounded with an increase in days in circulation and a decrease in trading volume.
US crude oil prices fell 0.3% to $85.41 per barrel.
The 10-year Treasury yield rose 13 basis points to 4.63%, hitting a new 2024 high. Friday’s safe-haven flows into U.S. Treasuries reversed on Monday as Middle East unrest receded, and strong retail sales pushed yields higher.
Market fear gauge rises again
especially, CBOE Volatility Index, or VIX, rose 11% on Monday, hitting a 2024 closing high. On Friday, market fear soared to its highest level since late October due to Iran concerns. Concerns about the Middle East remain high, but soaring yields are adding to investor anxiety.
However, the VIX does not appear to be at extreme levels that would suggest a market bottom.
However, the rise in the VIX and indicators of highly oversold market conditions are worth noting.
ETF
Among growth ETFs, iShares Expanded Technology Software Sector ETF (IGV) Microsoft and Salesforce, two major IGV companies, fell 2.75%. VanEck Vectors Semiconductor ETF (SMH) decreased by 1.5%. Nvidia stock is his major SMH holding.
ARK Innovation ETF (Arkku) sold 4.6%, ARK Genomics ETF (arcg) 3.8%. Tesla stock is a major holding across Ark Invest’s ETFs.
SPDR S&P Metals & Mining ETF (XME) fell 0.2%. SPDR S&P Home Builders ETF (XHB) fell 1.3%. Energy Select SPDR ETF (XLE) retreated 0.9%, while the Healthcare Select Sector SPDR Fund (XLV) fell 0.2%.
Industrial Select Sector SPDR Fund (XLI) retreated by 0.7%. Financial Select SPDR ETF (XLF) fell 0.5%, with Goldman the leading member.
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nvidia stock
Nvidia stock fell 2.5% to 860.01 after reaching 906.13 on Monday morning. The AI chip leader has fallen below the 21-day line and is once again testing the 10-week line. The flat-based buy point for NVDA stock is 974.
Nvidia chip manufacturer taiwan semiconductor (TSM) reported early Thursday morning.
microsoft stock
Microsoft stock fell 2% to 413.65, below its previous buy point of 420.82 and closing below its 50-day line for the first time since Oct. 6.
MSFT stock entered at 429.37 in a tight three-week pattern, but would still be relatively close to its 50-day level. The Dow tech giant may be working on a new flat base.
Microsoft’s financial results for the third quarter of fiscal 2024 are scheduled to be released on April 25th.
Tesla suffers ‘another bad day’
Tesla announced that it will cut more than 14,000 jobs, or more than 10% of its global workforce. This follows surprisingly low first-quarter deliveries, with first-quarter earnings expected to be announced on April 23rd.
Tesla also sharply reduced discounts on Model Y inventory in the US, even as inventories skyrocketed.
These moves could boost profits and profit margins, but they also signal the possibility of further production cuts.
Several Tesla executives from major projects have resigned or been fired, which bodes poorly for the effort.
Next-generation EVs are being put on the back burner, Electrek reported on Monday. Despite Musk’s vague denials, this largely confirmed a Reuters report from two weeks ago.
Additionally, Cybertruck deliveries have reportedly been suspended in recent days.
Monday was “another dark day” for Tesla, said Wedbush analyst Dan Ives, a longtime TSLA bull.
This spate of bad news and uncertainty has increased interest in the company’s first-quarter earnings report on April 23 and subsequent conference call.
“The Street wants and needs answers on Tesla’s first quarter conference call next week,” Ives said in a note Monday.
Tesla stock fell 5.6% on Monday to 161.48, near its recent 11-month low of 160.51.
what to do now
The stock market entered the week with an “uptrend under pressure.” Monday’s actions certainly didn’t help.
Investors should reduce their exposure.
Also, with earnings season in full swing starting next week, there is a great deal of uncertainty.
But stay engaged and keep your watchlist updated.
Many stocks have set up or established new locations, but most have suffered setbacks recently. We will focus on companies that maintain their leading levels and show relative strength. If the market regains momentum soon, these stocks could emerge as leaders.
Read The Big Picture every day to stay on top of market direction and key stocks and sectors.
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