Major stock market indexes held above sell-off lows Monday afternoon while buyers sat on their hands, worried about a more aggressive Fed after Friday's blowout labor report. Fed Chair Jerome Powell will speak to the Economic Club of Washington, D.C., on Tuesday.
The Dow Jones Industrial Average dropped 0.2% and the S&P 500 gave back 0.7%. The Nasdaq fell 1% while the small-cap Russell 2000 traded worse than blue chips, down 1.5%.
Volume on the NYSE and Nasdaq was lower than the same time on Friday.
The Dow held above its 50-day and 21-day exponential moving averages, while the S&P 500 traded above its 21-day line. The Nasdaq found support at its 200-day moving average. The tech-heavy Nasdaq 100-tracking Invesco QQQ Trust ETF dipped 0.8%.
Crude oil gained 0.6% to $73.84 per barrel, after shedding almost 8% last week. The Energy Select Sector SPDR ETF dropped 0.7%.
Bitcoin futures fell 1.5% to $23,145. The Innovator IBD 50 ETF was in line with the major stock market indexes, shedding 0.9% but remaining above the 50-day line.
European stock markets fell, with the German DAX down 0.8% and Paris CAC 1.3%. The London FTSE pulled back 0.8% to close out the trading day.
Friday's report of 517,000 new jobs will weigh on the Fed's rate trajectory but it's uncertain how aggressive that governors will react. As a result, Powell's first post-meeting appearance on Tuesday could be a market-mover.
The 10-year U.S. treasury yield rose 12 basis points to 3.64%.
Stock Market Movers
PepsiCo, Walt Disney, Chipotle Mexican Grill, Hilton, Wendy's and Coty all report earnings this week.
Catalent soared 20% after Bloomberg reported Danaher is interested in taking over the life sciences company. Shares of DHR dipped 2%. CTLT is the S&P 500 biggest winner today.
Children's Place plummeted 4% after forecasting a large Q4 loss.
EV giant Tesla gained 2.6% after a jury on Friday found Chief Executive Elon Musk not liable in a securities fraud lawsuit. Tesla also raised prices of its Model Y.
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Digital payments firm PayPal dropped 3.6% after Raymond James downgraded the stock to market perform from outperform, and lowered its price target to 133 from 136.
Gold miner Newmont sold off 4.7% after it offered to buy Newcrest Mining in an all-stock deal. Shares of Newcrest rose over 12% on the news.
Fitness beverage maker Celsius Holdings jumped 8.4% in heavy volume, after Wedbush upgraded the stock to outperform from neutral and raised its price target to 115 from 95.
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Artificial intelligence stock C3.ai is off its earlier high, rising 2.5% in very heavy volume, as investors consider the next 10 years of tech advancements. The stock has gained a phenomenal 158% year to date.
Onsemi added 1% in heavy volume, after a positive Q4 earnings report but lower-than-expected Q1 guidance. Management also announced a $3 billion buyback.
Shares are above the 5% buy zone after hitting the 77.28 buy point of a cup base Wednesday. The automotive and industrial-chip maker was Thursday's IBD 50 Stocks To Watch pick.
Luxury lifestyle and home furnishings retailer RH sold off 7.3% on news the company will restate earnings, due to an accounting error. Separately, management gave updated 2022 revenue numbers at the low end of the range.
Computer manufacturer Dell Technologies retreated 2.8% after announcing it will cut 5% of its workforce and realign its global sales and services teams.
Stock Market Today
Meat processor Tyson Foods sank 4.6% after reporting lower-than-expected fiscal Q1 2023 earnings and sales.
"We faced some challenges in the first quarter," CEO Donnie King said. "We expect to improve our performance through the back half of fiscal 2023 and into the future, as we strive to execute with excellence and work to become best in class in our industry," King added.
Neurocrine Biosciences sold off 4.3% after a mixed report. The stock found support at its 200-day line. The San Diego-based biotech company specializes in treatments for neurological, endocrine and psychiatric diseases.
IBD 50 stock Timken lost 5.9% after reporting mixed Q4 earnings results.
Follow Kimberley Koenig for more stock news on Twitter @IBD_KKoenig.
