Bears remained in firm control at the closing bell Tuesday as the Dow Jones Industrial Average recorded its longest losing streak since the 1970s. Meanwhile, Nvidia buckled again but Tesla soared on the stock market today as analysts made a "bull case" for the stock.
The Dow lost 0.6%, or 267 points, and posted its ninth-straight loss. It's a streak that hasn't been seen since Feb. 22, 1978, according to Dow Jones data. Dow stocks ended near the session's lows.
The index's last positive day was Dec. 4, when it reached an all-time high of 45,073. Since then, blue chips have dropped more than 3% and are testing their 50-day moving average.
Meanwhile, the benchmark S&P 500 index rose from its morning lows but ended 0.4% lower on Tuesday. Among its 11 sectors, consumer discretionary alone gained, likely getting a lift from Tesla.
The Nasdaq finished 0.3% lower, paring some of its losses from earlier in the session. The tech-heavy index tested the 20,000 mark at one point during the day, but remained solidly above the threshold at the close.
Decliners Outnumber Advancers In Higher Volume
Volume on both the New York Stock Exchange and Nasdaq was higher compared with the same time on Monday. But decliners outnumbered advancers on both exchanges — by 3-to-1 on the NYSE and 2-to-1 on the Nasdaq.
Small caps on the Russell 2000 fell 1.3% while the Innovator IBD 50 exchange traded fund dropped 1%. The fund is above a buy zone with an entry point of 29.15.
The yield on the benchmark 10-year Treasury note edged higher to 4.4%. And bitcoin jumped, topping the $106,500 level.
In economic news, the Federal Reserve started its meeting Tuesday, and plans to have a rate decision announcement Wednesday. Comments from Fed Chair Jerome Powell are due to follow the rate decision. Traders see a 97.4% chance of a 25 basis-point interest rate cut, according to the CME FedWatch Tool.
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Famed investor Warren Buffett is known for making stock picks after careful study. One of the Berkshire Hathaway CEO's recent picks was defense contractor Heico. Buffett bought shares of the company during the second quarter.
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Heico fell 1.1% in regular action Tuesday, slipping below both its 50-day moving average and 21-day exponential moving average ahead of fiscal fourth-quarter results. After it reported earnings, shares plunged more than 5% in after-hours trading.
The company missed on sales views as fourth-quarter revenue grew to $1.01 billion vs. analyst estimates of $1.03 billion. Earnings per share came in at 99 cents vs. views of 98 cents.
The stock recently fell below a flat-base buy zone's 269.38 entry. Its Relative Strength Rating from Investor's Business Daily stands at 80 out of a best-possible 99.
1:56 p.m. ET
Tesla Hits Another High
Tesla has been a huge beneficiary in the postelection rally, gaining 84% since Nov 5. The Magnificent Seven stock rose to another record high Tuesday, putting it on pace for its ninth gain out of the last 10 sessions. Shares hit a new high amid a three-day winning streak.
Late Monday, Wedbush analyst Dan Ives raised the price target for Tesla stock to 515 from 400. But the analyst did not rule out a "bull case" for the stock hitting 650 in 2025.
Also, leisure stocks fared well in the IBD MarketSurge Growth 250. Travelzoo, Amer Sports and Atour Lifestyle Holdings all recorded sharp gains.
12:30 p.m. ET
Dow Jones: Nvidia Trims Losses On Microsoft Risk
Nvidia was the worst performer in the Dow in the early going, but the leader in artificial intelligence trimmed its losses.
Nvidia is testing two voltage regulator modules, the AOS 5x5 DrMOS and the MPS 5x6 DrMOS. The issue may also rise from the thermal management system and may give rise to delays in the mass production of Nvidia's Blackwell chip.
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"Nvidia may take proactive measures to avoid delays in GB300/B300 mass production," if the issue remains, said TF International Securities analyst Ming-Chi Kuo in a note to clients.
Nvidia stock also felt pressure Tuesday from reports that key customer Microsoft currently is not "chip supply constrained." If that's the case, Microsoft might not need to order as many chips as expected. UBS analyst Timothy Arcuri believes that the software giant may have represented 13% of Nvidia's fiscal first-quarter sales.
10:56 a.m. ET
Stock Market Today: Recent Gainers Fall
In the MarketSurge 250, several recent gainers fell. Broadcom, Credo, AppLovin and Palantir declined. Bitcoin miner Hut8 rose.
Pfizer was a top winner and rose more than 4% after the drug company gave an outlook for 2025 with $63 billion in sales and $2.90 in earnings per share at the midpoint.
Risk Outlook for 2025 Shifts
Elsewhere, a report from Deutsche Bank Research shows that investors' outlook on market risk has shifted from a "hard landing" in 2024 to a general weakening in tech stock valuations, stubborn inflation and yields. Investors also see a possible trade war in 2025, in the face of possible tariffs planned by President-elect Donald Trump.
"Some investors now worry that Trump's trade agenda for more tariffs could spark a rise in still-sticky inflation," the Deutsche Bank report said.
In other economic news, retail sales rose 0.7% month-on-month vs. consensus views of 0.5% for November. Excluding autos, though, sales were up 0.2% vs. expectations for 0.4%.
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Homebuilder Lennar fell further below the 50-day moving average ahead of its earnings on Wednesday.
FedEx and Nike will report on Thursday. Shares of FedEx are in a consolidation with a buy point of 313.84. Dow Jones component Nike is in a downtrend and is testing its 50-day moving average.
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