Major indexes fell to session lows in afternoon trading. The Dow Jones Industrial Average lost 0.8% at 1:30 p.m. ET Tuesday, ahead of Big Tech earnings news. Several tech stocks flashed sell signals ahead of earnings.
Health care stocks gained while Dow fell after earnings.
The S&P 500's fall was a steep 1.2% and the Nasdaq lost even more in early afternoon trading, dropping 1.5%. Fiserv and PepsiCo gained after earnings. First Republic Bank plunged.
Volume on the NYSE rose and fell on the Nasdaq compared with the same time on Monday.
Crude oil dumped more than 2% to $76.84 per barrel. The yield on the benchmark 10-year Treasury note fell 7 basis points to 3.44%. The small-cap Russell 2000 fell nearly 2% in the afternoon.
The Dow Jones Transportation Average shed more than 3% after component United Parcel Service missed Q1 estimates and lowered full-year 2023 guidance.
UPS stock fell more than 9% in the afternoon. The miss raises fears of a major slowdown in the U.S. economy.
Elsewhere, housing remained strong in March, but consumer confidence weakened. The Conference Board's Consumer Confidence Index fell to 101.3 in April from 104.0 in March. Analysts at Comerica see a mild recession over the next 12 to 18 months.
A pivot to rate cuts after a hike in May depends on how fast inflation cools and wage growth moderates. The odds of a 25-basis-point hike next week stand at 84%, according to the CME FedWatch Tool.
FANG Stocks, Dow Jones Leader On Deck
Three FANG stocks are on deck this week.
Earnings for Google parent Alphabet are due after the market closes, along with Microsoft's results. Facebook parent Meta Platforms is on deck Wednesday, with Amazon wrapping up on Thursday.
GOOGL is up 20% so far for the year while MSFT has posted a 17% gain. Amazon has booked 26% upside, but Meta leads the pack, rallying an amazing 75%. META stock is on the IBD Leaderboard. The S&P 500 has gained just over 7% during the period while the Nasdaq has posted a 16% gain.
Slowing ad sales and news on how chatbots will change online search will be on watch for GOOGL. Investors also want to know about recent layoffs by the Mountain View, Calif.-based company. Azure cloud revenue amid cooling PC demand will give some clues into Microsoft's 2023 sales.
Analysts polled by FactSet see flat Alphabet sales vs. a year ago, of $68.8 billion, with lower earnings of $1.08 per share. Microsoft is expected to book just 3% revenue growth to $51 billion and nearly flat earnings of $2.24 per share.
Stocks Moving Today
Shares of General Motors fell despite a solid earnings beat and higher full-year guidance. Dow Jones component McDonald's also fell slightly after earnings. MCD stock is in a buy zone above a 281.77 entry.
Shares of First Republic Bank crashed after the bank said it lost $72 billion in the bank run in the first quarter. PepsiCo raised its revenue guidance after earnings on Tuesday and is trading nearly 2.5% higher in the afternoon.
Tech stocks are setting off fireworks of sell signals on Tuesday.
IBD 50 component Cadence Design Systems fell sharply after earnings, slicing through the 50-day line and triggering a sell signal. Rambus also fell below its 50-day line, as did Palo Alto Networks, both ahead of earnings in May. Advanced Micro Devices triggered a round-trip sell signal ahead of earnings on May 2.
Dow Jones component Visa is on watch as it hovers near an entry at 227.51 with earnings due later today.
Enphase is due as well. Shares have cleared the 50-day line ahead of earnings.
Tesla was flat in the afternoon after recent losses. Ark Invest founder Cathie Wood last week forecast the stock hitting $2,000 by 2027 on growth from robotaxis. Ark's bull-case scenario sees robotaxis making up two-thirds of Tesla's enterprise value, making the EV giant an $8 trillion megacap.
Futures Rise As Tech Titans Jump On Earnings
Earnings On Deck
Dow Jones component Boeing, ServiceNow and KLA are lined up for earnings on Wednesday.
NOW stock is carving a handle with a possible 485.68 entry.
Dow Jones components Intel and Caterpillar are due Thursday, along with SwingTrader stock Crocs.
INTC is testing support at the 50-day line. CAT is in a downtrend and below the key 50-day line. CROX is in a buy zone above a 143.60 entry.
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