The major indexes continued to trade sharply lower at 1:30 p.m. ET Tuesday after more economic data was released. The Dow Jones Industrial Average shed nearly 400 points and was down 1%. The index is breaking support at its 200-day moving average.
The S&P 500 and the Nasdaq fell over 1.1% at the hour in the stock market today. All S&P sectors declined.
Volume on the NYSE and Nasdaq was higher compared with the same time Monday.
Amid small caps, the Russell 2000 fell 0.6%, to the day's lows. The Innovator IBD 50 ETF fell 0.7% in early afternoon trading.
The yield on the benchmark 10-year Treasury note continued to stay near multiyear highs and was unchanged at 4.54% at the hour. On Monday, Treasury yields hit levels last seen in 2007, before the housing market crash of 2008.
The Conference Board's September consumer confidence survey reading fell to 103, a four-month low, from a revised 108.7 the previous month. Economists had expected 105.8 in the latest survey.
Home Price Rise, But New-Home Sales Fall
Housing data was mixed. The Case-Shiller Home Price Index for July came in higher at 0.9% vs. the 0.7% consensus and unchanged from June. The Federal Housing Finance Agency's House Price Index also rose to 0.8% in July, after June's revised 0.4% gain. New-home sales for August were 675,000, lower than the consensus view of 699,000 and July's 714,000, according to Econoday.
Late Monday, ratings agency Moody's warned that a government shutdown could be "negative" for U.S. credit ratings. In August, Fitch downgraded U.S. credit to AA+ from AAA.
Friday's Personal Income and Outlays for August is another key economic report. The PCE price index is expected to show a 0.5% reading, after July's 0.2%. On an annual basis, Wall Street expects it to rise to 3.5% from July's 3.3%.
Crude oil rose nearly 1% to $90.49 a barrel.
Dow Jones Stocks
Apple fell 2% as most other Dow stocks fell also.
A six-day losing streak has landed Visa near its 200-day line. That's Visa's longest losing streak in a year, according to Dow Jones Market Data.
Costco will report earnings for its August-ended quarter after the market close. Comparable sales fell in the third quarter but rose in July and August. E-commerce sales continued to lag in August. The stock, down moderately today, offers an entry at 571.21 in a flat base.
Progress Software will also report at the market close. PRGS stock is falling below long-term support at the 200-day line.
Alphabet fell below the 50-day line and is back near a buy point of 127.10. The company's antitrust trial is happening today.
What To Do As Stocks Sell Off; Meta's AI Push In Focus
Oil Stocks Show Resilience
A few stocks are surviving the market carnage, especially in the energy sector. Helmerich & Payne, ChampionX and Valaris in the growth 250 are holding their 50-day lines.
In the IBD 50 index, Cintas was the worst performer as it plunged below its 50-day line in a 4.7% sell-of. Argenx gapped down 5% and has fallen below the 50-day line.
Oil play Tidewater gained 3% and is showing resilience at the 50-day average, as well. Also in the IBD 50, oil tanker company Frontline is aiming for an eight-day win streak after regaining the 50-day line.
Among EV plays, Tesla rival Fisker pared some of its early gains but remained near its 50-day line after Bank of America analysts reinitiated coverage with a buy rating. The company announced Tuesday it plans to ramp up deliveries to 300 a day. Tesla is expected to report third-quarter deliveries next week.
Tesla Faces New Probe
EV leader Tesla fell in the afternoon. MarketWatch reported that the European Union is investigating if Tesla benefited from Chinese subsidies. The stock fell 1.2% at the hour, but a handle entry of 278.98 for TSLA stock remains valid for now.
Analysts at JPMorgan upgraded DraftKings to overweight from neutral with a price target of 37, up from 26. Shares are trying to break a five-day losing streak, up 4%, but the stock remains below the 50-day line.
United Natural Foods plummeted 26% in heavy volume after quarterly results disappointed. Sales of $7.4 billion rose 2% from the prior-year same quarter and showed deceleration. A loss of 25 cents per share showed the wholesaler's reversal from profitability vs. the year-ago period.
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