Stock Market Closes Higher, Dow Jones Leads Major Indexes
The stock market closed higher Tuesday after a rally in the final 90 minutes. The Dow Jones Industrial Average closed the day the strongest while other indexes eked out small gains.
Market Performance
In the stock market today, the Dow improved in the final minutes of the day and gained nearly 0.4%. The S&P 500 also strengthened and inched up 0.2%, while the Nasdaq reversed for a 0.1% increase. The small-cap Russell 2000 fared better than the major indexes and jumped nearly 0.9%.
The Invesco QQQ Trust (QQQ) edged 0.2% lower, while the Innovator IBD 50 ETF (FFTY) pulled back 0.3%.
Volume rose on the New York Stock Exchange and fell modestly on the Nasdaq vs. the same time Monday, in preliminary results.
Meanwhile, the 10-year Treasury yield shed 7 basis points to 4.09%.
Magnificent Seven Mixed: Nvidia Finally Gives In
Magnificent Seven stock and IBD 50 name Meta Platforms (META) gave back 1% while Nvidia (NVDA) took a break from all-time highs and closed the day with a 1.6% loss. The leading chip and AI stock had a tremendous run and is well above the 20% profit zone of a 505.48 buy point.
Meanwhile, Alphabet (GOOGL) added 0.3%. Apple (AAPL) notched up 0.9% while Microsoft (MSFT) shed less than 0.1% and Amazon.com (AMZN) trimmed 0.7%.
Tesla (TSLA) added 2.2% despite a Daiwa downgrade to neutral from outperform with a 195 price target. Piper Sandler cut its price target on the electric-vehicle maker’s stock to 225 from 295 and maintained its overweight rating.
Stock Market Movers: Super Micro Hits New High
Water technology and equipment company Xylem (XYL) gapped up 4.8% in heavy volume and broke out of a cup-with-handle base with a 114.89 buy point.
Xylem topped its fourth-quarter EPS and sales forecasts and gave first-quarter and full-year 2024 profit and sales estimates topping analysts’ views. Quarterly earnings growth slowed to 8% from 14% in the prior quarter on 41% sales growth.
Xylem reached a 52-week high. The stock marked its highest close since Jan. 4, 2022, when it closed at $118.13.
IBD 50 component Super Micro Computer (SMCI) reached an all-time high before reversing as much as 4% lower. The stock closed 2.8% higher on the day. Shares have been on a tear since the data center specialist reported a beat on its fiscal second-quarter profit and revenue expectations on Jan. 29. Super Micro also raised its fiscal 2024 sales outlook due to strong demand for AI systems.
GE HealthCare Technologies (GEHC) rocketed 11.7% in heavy volume following the firm’s higher-than-expected fourth-quarter adjusted earnings and sales. The medical device maker issued 2024 adjusted earnings projections that topped analysts’ estimates.
Shares jumped above a 78.33 handle entry and are nearing an 83.14 alternative buy point. The stock was the biggest gainer on the S&P 500 Tuesday.
Ford Motor (F) gained 4.1% ahead of its fourth-quarter earnings report after the market close. The stock has found resistance at its 200-day moving average.
Electronics Stock Tumbles
Symbotic (SYM) plummeted 23.6% in heavy trading after the warehouse robotic technologies company reported in-line results for its fiscal first-quarter. Symbotic stock fell below its 50-day and 200-day lines, giving a sell signal.
Fabrinet (FN) gapped down 18.4% in heavy volume even after beating fiscal second-quarter profit and revenue estimates. The switch and electronic components maker gave a fiscal third-quarter outlook that was below analysts’ views.
Vertex (VRTX) fell around 3% even after the cystic-fibrosis-drug maker reported modestly higher fourth-quarter profit and sales than analysts expected. The drug stock pulled back from a 52-week high reached on Jan. 30.
Vertex shares are extended from a flat base buy zone reaching to 406.79. Its relative strength line is on a steep downtrend.
Stock Market Shakers: Palantir Pops
Palantir Technologies (PLTR) gapped up 30.8% in huge volume, after the data analytics and privacy software firm reported in-line fourth-quarter earnings and higher-than-expected revenue. Quarterly profit increased 100% on 20% sales growth.
Shares are extended from the 5% buy zone of a 20.24 entry point of a cup base. Palantir stock, however, broke out past a 21.85 buy point. Tuesday’s move was the largest increase on record for the company, according to Dow Jones Market Data.
Eli Lilly (LLY) reversed lower 0.2%. The move followed the drugmaker’s beat on fourth-quarter earnings and sales estimates and a full-year 2024 earnings and revenue outlook that topped views. Its Zepbound weight loss drug sales exceeded revenue estimates while its Mounjaro diabetes drug sales soared.
The stock is extended from a flat base 629.97 buy point, according to MarketSmith pattern recognition. Shares touched an all-time high in the stock market Tuesday, before retracing.
Oil giant BP (BP) rallied 6.3% after the oil company reported higher-than-expected fourth-quarter adjusted earnings and a miss on sales expectations. BP also announced it is increasing its share buyback to $1.75 billion in the first quarter, up from $1.5 billion in the prior quarter. In the process, the oil stock reclaimed its 50-day line.
More Stock Action: Rambus Sells Off
Spotify (SPOT) eased from larger gains and closed up 3.9%, after the music streaming company posted a smaller fourth-quarter loss and lower sales than expected and a higher number of new subscribers. Spotify stock is extended from a 202.88 flat-base entry. Shares reached a 52-week high Tuesday.
Chipmaker Rambus (RMBS) sold off 19.2% in heavy trading after the company beat fourth-quarter earnings but missed sales estimates. The gap below the 50- and 200-day lines triggered a sell signal.
DocuSign (DOCU) pared losses to 2%. The company said it will cut about 6% of its staff as part of a restructuring plan. The electronic signature and online document solutions platform closed down for a sixth straight day.
The company’s shares plunged nearly 8.5% Monday after Reuters reported that private equity companies Bain Capital and Hellman & Friedman have paused talks to acquire DocuSign after struggling to agree on a price. DocuSign stock sank below its flat base and undercut its 50-day line on Monday, a sell signal. It bounced off its 200-day moving average in the stock market Tuesday.
Asset management firm KKR (KKR) advanced 5.8% after beating its fourth-quarter top and bottom line estimates. On a weekly chart, the IBD Leaderboard stock is extended from a flat base with an 85.66 entry. The buy zone reached to 89.94.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
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