The major stock market indexes sold off once again on Tuesday but are holding above the lows of the day. Trading volume is light as investors extend their long holiday weekends.
The Nasdaq lost 0.9% while the S&P 500 shed 0.7%. The Dow Jones Industrial Average is splitting the difference, down 0.8%.
Small caps are showing outsize weakness once again, dropping the Russell 2000 index 1.1%.
Investors are selling big tech stocks as they seek safer havens, dumping the Nasdaq 100-tracking ETF Invesco QQQ Trust by 1%.
NYSE and Nasdaq volume dropped double-digit percentages compared to the same time on Friday.
Crude oil is down 0.2%, trading at $86.64 per barrel. OPEC+ agreed on Monday to cut output by 100,000 barrels per day in October, on concerns that energy prices are dropping too quickly.
Natural gas sold off 5.6% despite worries about the Russian pipeline closure. The SPDR Select Energy ETF lost 0.8%.
Bitcoin futures are falling once again, losing 3.9% to the $19,000 level.
The German DAX stock index gained 0.9%, the FTSE 100 0.2% and the CAC 40 0.2% in late European action.
Yield on the 10-year U.S. Treasury note increased to 3.34%.
Markets now project a 76% chance the Fed will raise interest rates by 75 basis points in September. And 24% of market watchers expect a 50-basis-point hike.
Purchasing Loses Steam But Services Look Strong
The final August U.S. Purchasing Manager's Composite Index came in at 44.6, below the declining 45.0 consensus earlier in the month. The August IHS Markit Services PMI also deteriorated, dropping to 43.7 from 44.1.
The data indicates a contraction phase for the private sector services industry, with new orders seeing the sharpest decline since May 2020. New export orders also dropped.
On the flip side, the August ISM Services Index beat expectations at 56.9%, compared to the 55.4% consensus. This marked the highest level since April.
The scale measures business activity, new orders, employment and supplier deliveries for nonmanufacturing sectors such as restaurants and hotels. Results over 50% indicate expansion, while below 50% indicates contraction.
Stock Market: Big Winners And Losers
Chicken wings chain Wingstop, a MarketSmith Growth 250 stock, jumped 7.6% on heavy volume. The stock is trading above the 21-day line while shares boast a 91 Relative Strength Rating, 88 Composite Rating and 85 EPS Rating.
Uranium mining company Cameco briefly retreated 1.3% after gapping up early in the session on heavy volume. Shares hit a new high on the relative strength line on MarketSmith. It was about 0.4% higher in afternoon trading.
CCJ is No. 1 in the Mining-Metals Ores industry, which ranks No. 165 out of the 197 industries IBD tracks.
Nexterra Energy is up 2.7% after Morgan Stanley upgraded the stock to "Overweight" from "Equal Weight," setting a $99 price target.
Share jumped above the 21-day exponential moving average, which is now its support line. The company is second in the Utility-Electric Power group, which ranks No. 37 put of 197 IBD groups. It's also earned a strong 97 Composite Rating,
Pest control company Rollins has climbed 5% after RBC Capital upgraded the stock to "Outperform" from "Sector Perform" with a $40 price target. Shares rose above the 21-day exponential moving average and are heading up toward the 50-day moving average.
The stock had a recent cup-with-handle base and 37.32 buy point.
Dropbox gained 2.2% after BofA Securities initiated coverage with "Buy" rating and $34 price target.
Bed Bath & Beyond plunged another 17% after reports of CFO Gustavo Arnal's suicide on Friday.
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Stock Market Today: IBD 50 Stocks On The Move
The IBD 50 ETF, a measure of growth stocks, shed 1%, matching major indexes.
Enphase Energy spiked 5.4% on heavier volume, trading above the 21-day line.
Alpha Metallurgical Resources gapped up 5.2% on higher volume and in a cup-with-handle base and buy point of 174.03. The company holds perfect 99 Composite and Relative Strength ratings.
Alpha has seen enormous quarterly EPS growth after turning positive in Sept. 2021. Mutual fund ownership increased to 260 in June from 166 in March.
Shockwave Medical plummeted 6.7% Tuesday after Oppenheimer downgraded the stock. Shares are now below the 21-day exponential moving average.
Natural gas company Civitas Resources sold off 4.8% on heavy volume, and is trading under the 21-day line.
