The stock market tried to bounce back after a three-day sell-off, but sharp gains at the open faded. Indexes were mixed at midday.
The Nasdaq recovered more than 2% early on, but pared its gain to 0.1% at midday. The S&P 500 reversed lower 0.3%. The Dow Jones Industrial Average rose 0.4% after rising more than 1%. Small caps took a bigger hit as the Russell 2000 came down 1.1%.
The Nasdaq's 4.3% loss Monday marked a three-day losing streak of more than 10%. It was the largest three-day decline since March 2020.
Today's volume rose on the NYSE and Nasdaq compared with the same time on Monday.
Crude oil prices fell 1.8% to $101.26 a barrel. The yield on the 10-year Treasury note fell 12 basis points to 2.95%, dropping below 3% for the first time since Thursday.
Tobacco Stocks Tumble
Tobacco stocks, normally a haven during weak stock markets, sold off. Altria Group plunged nearly 8% and slid below the 50-day line in heavy trading. Q1 earnings beat views, although sales dipped 2% from a year ago.
Phillip Morris fell 1.3%. It confirmed talks to acquire Swedish Match in a deal that could be worth $15 billion. Vector Group tumbled 12% as it also slid below its 50-day line after earnings were announced.
Tesla bounced 3.5% early but reversed lower at midday. The stock slid more than 9% Monday. The company's Shanghai plant shut down again Monday after a supplier had to stop shipments due to a Covid infection in one employee, Reuters reported. Other reports said the factory wasn't entirely halted.
Other EV stocks were mixed.
Li Auto beat first-quarter earnings estimates, but gave weak Q2 delivery and revenue guidance. Shares reversed modestly lower. Xpeng reversed lower 2%, Nio fell 3.2% and BYD pared gains to 0.4%.
Techs Rise In Volatile Session; Has Inflation Fever Peaked?
Pfizer To Buy Drugmaker
Pfizer rose 0.7% but continued to test resistance at the 200-day moving average. The pharmaceutical giant announced it is acquiring Biohaven Pharmaceutical in a deal valued at $11.6 billion. Biohaven makes the migraine medication Nurtec ODT. Biohaven stock vaulted 70% to the highest since November.
In the current stock market correction, it wouldn't be a normal day without a catastrophic stock sell-off. On Tuesday, Upstart took the title, with a 60% hammering in huge volume. The cloud-based consumer lending platform cut its full-year revenue forecast. Higher interest rates and prices threaten a recession this year, the company said.
Rada Electronic Industries plummeted 13% in heavy volume after the maker of military systems and sensors posted a first-quarter loss. Israel-based Rada said a delay in the U.S. budget hurt its financial results. The stock, which broke below the 50-day moving average Monday, gapped down today.
Peloton Woes Grow
Peloton Interactive reduced its loss to 12.5%, hitting a record low. The exercise bike company missed expectations for its March-ended quarter and its current-quarter guidance also was below estimates.
Once a winner in the pandemic economy, Peloton is now trading well below its IPO price of 29 per share. With Covid restrictions largely lifted, gyms are recovering. Planet Fitness rose 2.6% on better-than-expected results. The company also backed its 2022 outlook. Planet Fitness shares are still trading near nine-month lows.
Innovator IBD 50 ETF fell 0.9%.
