Stocks Fall As Dow Pierces Key Chart Level; Salesforce Plunges After The Close

Stocks Fall As Dow Pierces Key Chart Level; Salesforce Plunges After The Close

Major indexes finished lower in the stock market today, with the Dow Jones Industrial Average falling further below the 50-day moving average as yields continued to climb. Selling power (RCMP) plunged after the company reported its April quarter results after the close.




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On Wednesday, the Fed’s Beige Book showed a slight increase in economic activity in most districts between early April and mid-May. But rising interest rates and inflation have dampened economic activity to some extent. Rising prices have put pressure on margins in some sectors such as catering, although in manufacturing these have eased while businesses in general have seen consumers resist price increases.

The Beige Book, a snapshot of economic activity in the Fed’s 12 districts, will be part of the rate decision at the Fed’s June 11-12 meeting.

On Friday, the April personal income and spending report will be released. According to Econodaythe personal consumption expenditure price index is expected to increase by 0.3% month-on-month while remaining unchanged at 2.7% per year.

The Dow Jones posted a 1.1% loss on Wednesday, while the S&P 500 fell 0.7%. All 11 S&P sectors fell, the first time since April 30, according to Dow Jones Market Data. The Nasdaq performed slightly better and fell 0.6%.

Stock Market Magnitude Is Low Today

Volume fell on the NYSE and increased on the Nasdaq, according to preliminary data. Losers outnumbered progressors about five to one on the New York Stock Exchange, while on the Nasdaq losers outnumbered progressors nearly three to one.

The small-cap Russell 2000 index closed down 1.5%. The index broke support at the 50-day line. The Innovative IBD 50 ETF (FFTY) recorded a loss of 0.9% at the close.

Crude oil fell slightly to $79.23 per barrel as traders expect OPEC+ to extend production cuts for the next quarter on Sunday.

The yield on the 10-year Treasury note jumped 8 basis points to 4.62%, adding to Tuesday’s 7-point increase. Investors appear increasingly nervous that rate cuts will be delayed further than expected. Traders expect the target federal funds rate to remain unchanged at the next Fed meeting, according to the CME FedWatch Tool. The chances of a rate cut in September stand at 41.7%.

Dow Jones Healthcare Stocks

Salesforce rose slightly in regular trading but remained below the 50-day moving average ahead of its first-quarter earnings release after today’s market close. Shares fell 15% in extended trading after the report was released.

Dow Jones Component UnitedHealth Group (A H) fell nearly 4% and undercut the 50-day moving average. At a conference, CEO Andrew Witty cited concerns that Medicaid reimbursements are straining managed care providers and the problem may persist for several trimesters. As pandemic emergency measures ease, states are reducing enrollment.

Other health insurers, such as Hundreds (CNC) And Molina Health (Ministry of Health), also declined sharply. IBD’s Managed Care industry group was the fourth worst performer today, down 3.1%.

Merck (MRK) fell 0.1% after announcing the completion of a stock transaction to buy Eyebiotech that values ​​the private company at $3 billion. Merck stock is in a flat base with a point of purchase of 133.10.

Apple (AAPL) was one of the few gainers in the Dow, up 0.2% after narrowed gains.

In energy news, ConocoPhillips (COP) fell 3% and undercut its 200-day moving average after announcing its purchase Marathon Oil (MRO) for $22.5 billion in stock. Shares of Marathon jumped 8.5%.

Abercrombie & Fitch (ANF) soared by 24.3% after the fashion retailer reported its fiscal first quarter results. Abercrombie was the best performing stock in the IBD 250 Market Growth Today.

Profits that are changing on the stock market today

In leisure services, recent novelty viking (VIK) published its first quarter results and beat both sales and profits. Sales of $718 million were above expectations. However, shares fell 3%.

How are you (HOW ARE YOU) reversed higher and closed with a 7% gain after beating views for its first quarter. Declining traffic and slowing same-store sales growth put pressure on the stock in morning trading. But buyers entered the stock after the first half hour of trading.

You’re here (TSLA) was slightly lower because shareholders vote on CEO Elon Musk’s salary package. Shareholders will also vote for the electric vehicle company to be incorporated in Texas rather than Delaware.

Online seller of pet products Soft (BLOW) soared 27% after the release of first quarter results. The company also announced a $500 million share buyback plan. Stocks moved back above the 200-day moving average, according to Increase in the ITN market.

American airlines (AAL) plunged 14% after the airline reduced its sales and profit outlook for the current quarter.

Please follow VRamakrishnan on X/Twitter for more stock market news today.

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