Stock Market Plunges with Dow Jones Dropping Almost 500 Points; Cathie Wood Increases Holdings in a Stock Amid 45% Downtrend

Stock Market Plunges with Dow Jones Dropping Almost 500 Points; Cathie Wood Increases Holdings in a Stock Amid 45% Downtrend

The Dow Jones Industrial Average fell in the stock market today as Calvin Klein’s parent company PVH (PVH) cratered following its quarterly report. Fund manager Cathie Wood packs a punch You’re here (TSLA) just before electric vehicle stock fell according to first quarter delivery data. Seven magnificent actions Nvidia (NVDA) And Metaplatforms (META) fell despite bullish calls from Wall Street.




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Meanwhile, three stocks targeting buy points attempted to close in on entries. Badger counter (BMI), Services of the Republic (RSG) And TJX (TJX) are all in base models.

Stock market today: Nasdaq and small caps fall

The tech-heavy Nasdaq lost 1.2% at midday. ABOUT Semiconductor (ON) And Advanced microsystems (AMD) lagged behind with declines of around 4% each.

The benchmark S&P 500 index fell nearly 1% at midday. Human (HUM) And CVS Health (CVS) have been among the worst performers due to the liquidation of managed care providers.

Calvin Klein parent company PVH, which was kicked off the S&P 500 in 2022, was a notable laggard in the stock market today as it fell about 23% after warning of a revenue decline for 2024 It remained below its short-term rate and 50%. daily moving averages, triggering a sell signal.

Components of the S&P 500 were mostly in the red. Energy and utilities fare best the stock market today. Technology and healthcare were the weakest sectors.

Small caps were bitten by the bears, with the Russell 2000 falling 1.8% at midday. Growth stocks received an even harsher spanking, with the Innovator IBD 50 ETF (FFTY) crumbling by more than 2%.

The Job Openings and Labor Turnover Survey showed 8.76 million available positions. This figure is in line with the expectations of economists who expected 8.8 million, an increase of 8,000 compared to the January level. The ratio of openings to available workers fell to 1.35 from 1.43 the previous month.

The 10-year Treasury note rose 4 basis points to 4.37% while the 30-year note also gained 4 basis points to 4.51%. The five-year yield jumped 2 basis points to 4.36%, while the two-year yield slipped 2 basis points to 4.7%.

Although it has retreated from highs, the key 10-year yield today reached its highest level of 2024. At one point, the benchmark rate hit 4.4%, its highest level since November. The odds that the Fed will keep rates stable are now 96% in May. They are also at just over 41% in June, compared to a probability of 30% last week and 26% a month ago, according to the CME FedWatch tool.

Dow Jones Today: Dives at UnitedHealth

The Dow Jones was hit hard early on, losing more than 500 points. This equates to a drop of around 1.2%.

UnitedHealth (A H) was hit the hardest, falling more than 7% to its lowest level since July. The stock lost even more ground from its 50-day moving average, MarketSurge analysis shows this.

Healthcare stocks in general took a hit after the Centers for Medicare and Medicaid Services announced Medicare Advantage. rates for 2025 will increase by 3.7%. This disappointed investors who were hoping for a bigger rise.

Amgen (AMGN) And Intel (INTC) also lagged behind with declines of almost 2% each. Chevron (CLC) trimmed gains to less than 0.2% at midday.

Cathie Wood buys Tesla and stocks fall on deliveries

Buying laggards can be a perilous strategy. But one investor who isn’t afraid to buy the dip is Cathie Wood, managing director of Ark Invest.

The company, where she also serves as chief investment officer, acquired more than 62,000 Tesla shares for its capital. ARK Innovation ETF (ARKK) Monday. He also purchased just over 22,000 shares for the ARK Next Generation Internet ETF (ARKW).

But this time, it didn’t pay off for the intrepid investor as Tesla shares crashed about 5%, losing further ground in the market. 50-day moving average In the process.

Tesla got hammered weak deliveries in the first quarter. They fell 6.5% year-on-year to 387,000, missing expectations of 454,000 deliveries. This is also a 20% decrease from the previous quarter.

Tesla stock is about 45% below its 2023 high of 299.29, which it hit last July. Since then, it has been stuck in a stubborn downtrend.

The move highlights the risks of buying a stock ahead of a key report, whether earnings or, in this case, product delivery data.

Bargain hunting can be tempting for investors, but IBD recommends buying stocks with strong earnings and prices rather than lagging stocks. Look for leaders in strong industries that have superior profit and sales growth, like stocks in the IBD 50 list of top stocks.

Magnificent Seven: Nvidia and Meta fall despite bullish calls

Magnificent Seven’s other stocks all had negative sessions.

Nvidia (NVDA) fell almost 3% but is testing support at the 21-day line. The title of the ranking is extended beyond its most recent entry. It was down despite Oppenheimer reiterating an outperform rating.

Metaplatforms (META) reduced its losses and was almost stable at midday. It fell despite Bank of America reiterating its buy rating while raising its price target from 510 to 550.

Parent Google Alphabet (GOOGLE) fell 1.2%, although volume was below average. It is trading just below an entry of 153.78.

E-commerce giant Amazon.com (AMZN) And Microsoft (MSFT) both fell less than 1% while Apple (AAPL) fell by almost 1%.

Excluding Dow Jones: 3 stocks close to IPOs today

Tuesday didn’t seem like the best day for breakouts. But a few notable names loomed large near the entrances.

Badger Meter is in a cup base with handle with an ideal entry of 164.81. Although the overall performance is strong, the earnings performance stands out. Profits have increased by an average of 39% over the past three quarters. The stock is a member of the Industrial Machinery Industry Group.

Republic Services is another one to watch as it forms a flat base with a buy point of 192.57. It held strong in the stock market today and is trading above its 10-day line and 21-day exponential moving average.

Overall performance is very good for the waste transportation sector, with its IBD Composite Rating of 98. Earnings performance is a key strength, with RSG stock holding a EPS rating of 95.

Cheap clothing play, TJX was trying to dig into the 21-day exponential moving average. It formed a flat base with an ideal entry point of 102.84.

Earnings performance is strong, with an EPS rating of 93 out of 99. In total, 49% of its shares are currently owned by funds, according to MarketSurge data.

Please follow Michael Larkin on X, formerly known as Twitter, at @IBD_MLarkin for more analysis on growth stocks.

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