The stock market pulled back in the past hour, with the major indexes still showing losses to start the holiday-shortened week. Small caps led the selling.
Brent crude oil jumped 1.8% to $90 per barrel and West Texas Intermediate 1.8% to $87.07 a barrel, after Saudi Arabia announced it will extend its oil production cut of 1 million barrels per day for three more months. Russia also reported it would extend supply cuts. Shares of oil stocks rose on the news.
The Nasdaq trimmed its loss to 0.1% in midday trading. The Dow Jones Industrial Average and the S&P 500 both dropped 0.4%. All three major indexes are above their 50-day moving averages, with the Dow Jones testing the line.
The small-cap Russell 2000 underperformed and lost 1.8%.
Volume rose on the NYSE and Nasdaq vs. the same time on Friday, which saw light preholiday volume.
The Nasdaq 100-tracking Invesco QQQ Trust ETF edged up 0.1%. And the Innovator IBD 50 ETF underperformed the major indexes, off 0.6%.
The benchmark 10-year Treasury yield added 9 basis points to 4.26%.
Stock Market Action: Homebuilder Stocks Sell Off
Homebuilder PulteGroup tumbled 5.8% as bond yields rose. The stock fell below its 50-day line and is the biggest loser in the S&P 500 Tuesday.
The stock is on pace for its largest decrease since Oct. 19, 2022, when it fell 6.2%, according to Dow Jones Market Data.
Peer Toll Brothers fell 5% to test support at its 50-day line, while Lennar also shed 5% and fell further below its 50-day line.
Airbnb surged 7.9% on news that the company will be added to the S&P 500 index before the open on Sept. 18 as part of a quarterly rebalance for the S&P Indexes. ABNB stock retook its 50-day line on the news.
The online travel accommodations platform company reported 75% second quarter EPS growth on 18% sales growth on Aug. 3.
Blackstone shares jumped 3.9% on news that the alternative asset management firm will also be added to S&P 500. Shares are nearing the 108.77 buy point of a cup base. The stock is on track for its highest close since Nov. 11, when it closed at 108.77
Brady stock surged over 10% after the company reported better-than-expected July-quarter earnings and sales and posted full fiscal-year earnings above analysts estimates. The company also authorized an additional $100 million for its stock repurchase program.
Shares of the printing and workplace safety company broke out of a long, uneven base in heavy volume and hit the 56.35 buy point.
Other Movers: AI Software Stock Rises Ahead Of Earnings
Sprinklr climbed 2.7% and broke out of a cup base, rising past a 15.50 buy point. Shares of the AI-based enterprise software company are in the 5% buy zone, which goes to 16.28. The stock hit a 52-week high, while its relative strength line also scored a 52-week high, as shown by the blue dots on MarketSmith charts.
Sprinklr reports its July-ended quarterly results Wednesday after the market close. Analysts expect a 5 cent quarterly profit compared to a loss of 9 cents in last year's same quarter, according to Benzinga.
Tesla rose 4.3% after the company reported a 9.4% year-over-year rise in August China sales. The stock is bumping up against its 50-day line, which has been a resistance level for about a week. Tesla is the biggest gainer in the S&P 500 today.
America's Car-Mart gapped down 14% in heavy volume after the used car retailer reported a big miss on its July-quarter earnings and a small beat on sales. Shares fell below the 50-day line, triggering a likely sell signal, although the stock continues to form a base.
The company also announced CEO Jeff Williams will step down and President Doug Campbell will take over on Oct. 1. Williams will stay on through the end of 2024 as CEO Emeritus and will remain on the board.
NextGen Healthcare shares popped 7.1% after Bloomberg reported that Thoma Bravo is in talks to buy the maker of software for medical and dental offices. The stock is in a long cup base with a 21.99 buy point.
Shares of cloud application and database management company Oracle rose 2.1% following a Barclays upgrade to overweight from equal weight with a price target hike to 150 from 126.
IBD 50 stock Li Auto tumbled 6.2% on news of weak Chinese August PMI data. The EV maker is testing its 50-day line. China-based online travel stock Trip.com sank 6.4% on the China economic data. The stock also retreated below the 50-day line.
Follow Kimberley Koenig for more stock market news on X, the platform formerly known as Twitter, @IBD_KKoenig.
