The Dow Jones Industrial Average and the other major indexes dropped Tuesday, as Apple stock sold off on a report that showed sharply slowing iPhone sales in China. Meanwhile, famed investor Cathie Wood sold nearly $31 million worth of Coinbase on the stock market today.
The Dow Jones Industrial Average fell 0.6% in morning action, while the S&P 500 dropped 0.9%. The tech-heavy Nasdaq composite slipped 1.8% after the opening bell.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust exchange traded fund was down 1.8%, as the SPDR S&P 500 ETF fell 0.8%.
The 10-year Treasury yield fell 6 basis points to 4.16%. Further, oil prices added to Monday's losses, as West Texas Intermediate futures fell almost 0.7%, trading near $78.15 a barrel.
Cathie Wood Sells, Apple Stock Falls
Cathie Wood's Ark Invest funds sold nearly 135,000 shares of Coinbase stock Monday, or about $30.9 million worth using the closing price, per daily trade disclosures. Coinbase stock surged more than 11% Monday, hitting a new high.
Coinbase shares declined 1.1% Tuesday, as the price of bitcoin rose to trade around $67,700, per CoinDesk. Bitcoin is up more than 4% over the last 24 hours.
Apple stock lost 3% Tuesday on a report that showed slowing iPhone sales in China. The company sold 24% fewer iPhones in China in the first six weeks of 2024 than a year earlier, according to research firm Counterpoint Research.
Be sure to read how to adjust to changing market conditions, with IBD's new exposure levels.
Stock Market Today
The S&P Global's Purchasing Managers' Index for February rose to 52.5, above estimates for a 51.4 reading. The services index climbed to 52.3, above estimates for it to remain unchanged from the mid-month estimate at 51.3.
Meanwhile, the Commerce Department's factory orders fell 3.6% in January, more than expected. Finally, the Institute of Supply Management's services index fell to 52.6 in February vs. January's 53.4 reading.
Key earnings movers Tuesday included First Watch Restaurant, GitLab, Nio and Target.
First Watch slipped 3% in morning action, while GitLab plunged more than 17%. Nio shares were down 7.7%. And Target jumped more than 11% in early trading.
Dow Jones Falls
On Monday, the Dow Jones Industrial Average moved down 0.3% and the S&P 500 slipped 0.1%. The tech-heavy Nasdaq composite dropped 0.4%.
Monday's Big Picture column commented, "The Nasdaq closed Monday more than 5% above its 50-day moving average; the S&P is nearly 5% above its 50-day line. Those gaps must be tempting sellers, although the stock market has withstood even higher gaps this year."
Now is an important time to read IBD's The Big Picture column amid the continuing stock market rally. Be sure to read how to adjust to changing market conditions, with IBD's new exposure levels.
Learn How To Time The Stock Market With IBD's ETF Market Strategy
Best Stocks To Buy And Watch In Stock Market Today
Duolingo, Fortinet and Weatherford — plus Dow Jones components Disney, IBM and Procter & Gamble — are among the best stocks to buy and watch on the stock market today.
IBM and Duolingo were featured in this Stocks Near A Buy Zone column.
A great resource for daily breakouts is IBD MarketSurge's "Breaking Out Today" list. It shows MarketSurge Growth 250 stocks that are breaking out past new buy points. There was one breakout Monday: Rollins that broke out past a 44.43 cup-with-handle entry.
Meanwhile, the MarketSurge "Near Pivot" list shows stocks nearing buy points in bases, like Samsara. Shares are approaching a 36.78 cup-with-handle entry.
Get Real-Time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard
Dow Jones Stocks: Disney Eyes Buy Point
Disney is breaking out past a big cup-with-handle base's 112.92 buy point, according to IBD MarketSurge chart analysis. Shares rallied 1.6% Monday. Disney stock moved down 0.1% Tuesday.
IBM stock is rapidly nearing a flat base's 196.90 buy point, with a 2.6% advance Monday. IBM shares inched down 0.5% Tuesday.
Consumer products giant Procter & Gamble rose 0.5% Monday, holding above a 158.38 buy point in a cup base. P&G stock edged up 0.1% Tuesday.
3 Top Growth Stocks To Watch In The Stock Market Rally
Duolingo Eyes Buy Point
IPO Leader Duolingo is building the right side of a cup base that has a 245.87 buy point. Shares skidded 5% Monday. Duolingo shares fell 6.7% Tuesday morning.
Cybersecurity leader Fortinet is adding a handle to a long cup base, taking the buy point to 73.91. Fortinet stock rose 2.4% Monday. The stock lost 3.2% early Tuesday.
Oil stock Weatherford is back in buy range above a 102.65 buy point in a cup base, with a 3.2% drop Monday. The 5% buy range tops out at 107.78. Weatherford shares were down 0.9% Tuesday.
Best Bets On Stock Market Today
These are four best stocks to watch in today's stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Novo Nordisk | 105.69 | Flat base | |
| Merck | 119.65 | Cup base | |
| DraftKings | 39.35 | Cup base | |
| Spotify | 202.88 | Flat base |
Source: IBD Data As Of Feb. 28, 2024
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Magnificent Seven Stock: Nvidia, Tesla
Among Magnificent Seven stocks, Nvidia lost 1.8%, while Tesla declined another 5% Tuesday.
AI giant Nvidia looked to add to Monday's gains that saw the stock hit record highs. Shares are nearly 70% above a flat base's 505.48 entry. Nvidia is an IBD Leaderboard stock.
Tesla stock closed at its lowest level since Feb. 13, with a 7.2% dive. Shares remain sharply below their 50- and 200-day lines.
Dow Jones Leaders: Microsoft
Among Dow Jones stocks in the Magnificent Seven, Microsoft traded lower after Tuesday's stock market open.
Microsoft shares remain out of buy range past a 384.30 buy point in a flat base, amid a 0.5% rise Friday. The software giant fell 2.8% on the stock market today.
Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today.
