The stock market remained in the doghouse Tuesday as the Dow Jones Industrial Average fared the worst among the three major indexes in afternoon trading. Meanwhile, two Magnificent Seven stocks, Apple and Nvidia, remained mixed in recent action.
Stocks couldn't get to positive ground, as the Dow shed 0.8% and the S&P 500 fell 0.6%. The Nasdaq edged into the black earlier in the session, but that deteriorated to a 0.5% drop in recent action on the stock market today
The small-cap Russell 2000 underperformed the major indexes and fell 1%. Meanwhile, the Invesco QQQ Trust inched lower by 0.2% as the Innovator IBD 50 ETF edged higher by 0.3%.
Volume rose on the New York Stock Exchange and the Nasdaq vs. the same time on Friday.
Further, the 10-year Treasury yield added 13 basis points to 4.08%. Federal Reserve Gov. Christopher Waller gave comments that the Fed will likely cut rates this year, but will do so methodically.
January's Empire State Manufacturing Index surprised investors by falling to -43.7 vs. the expected -4.7, hitting its lowest level since May 2020. The reading measures manufacturing activity in New York. A reading below zero indicates deteriorating conditions.
Stock Market Movers: ELF Beauty Looks Attractive
Cosmetics maker ELF Beauty led IBD 50 stocks as it spiked more than 3%. Shares are extended from the 5% buy zone of a cup base with a 139.85 buy point. ELF climbed to a 52-week high on Tuesday after UBS lifted its price target to 186 from 130 and maintained its buy rating. The company was featured in a recent IBD New America story.
Fellow IBD 50 name StoneCo popped and reached the 20% profit zone from the 14.83 buy point of a cup base. The Brazilian fintech stock bounced off its 21-day exponential moving average, after trading around the line.
Tesla reversed course from morning losses and as the electric-vehicle giant lifted more than 1%. Chief Executive Elon Musk posted on X, formerly Twitter, that he feels he needs more control over TSLA shares and about 25% voting power before making Tesla a leader in artificial intelligence and robotics. TSLA is under its 50-day and 200-day moving averages.
Advanced Micro Devices gapped up more than 7% in heavy volume and hit a 52-week high. Shares topped the profit zone from the 125.72 buy point of a cup-with-handle base. KeyBanc raised its price target to 195 from 170 and maintained its overweight rating on the chip stock.
Western Digital surged nearly 4% after Deutsche Bank upgraded the data storage stock to buy from hold and raised its price target to 65 from 45.
Cboe Breaks Out; Apple Cuts IPhone Prices
Cboe Global Markets gained more than 1% and hit the 183.74 buy point out of a flat base. Shares reached a 52-week high and an all-time high, according to Dow Jones Market Data.
Parsons eased from gains and was relatively unchanged on the stock market. The stock is in the 5% buy zone out of a flat base reaching to 67.86. The defense and infrastructure technology stock jumped after Baird upgraded shares to outperform from neutral and raised its price target to 75 from 68.
Apple stock gapped down nearly 2% after the company cut prices on some of it newer iPhone models in China. Apple is below its 50-day moving average but is finding support at its 200-day line. Shares broke out of a cup-with-handle base with a 192.93 buy point in early December but have since given back those gains, and then some.
IBD 50 and Swing Trader stock Nvidia gapped up 2.9% and hit another all-time high. Shares are extended from a stage-one flat base with a 505.48 buy point.
Synopsys added 1.7% in heavy volume, on news it would purchase Ansys for $35 billion in cash and stock. SNPS bumped up against its 21-day line. Synopsys provides products to the semiconductor industry. Engineering stock ANSS gapped down more than 5% in heavy trading.
Financial Stocks Produce Mixed Results
PNC Financial Services inched up after the superregional bank reported higher-than-expected earnings and sales for the fourth quarter. Both numbers lagged last year's quarter. PNC had climbed from its 52-week low in late October.
Bank stocks rallied on the stock market in mid-December after the Fed's decision to leave rates unchanged. PNC closed below its 21-day line on Friday, and fell further below it Tuesday.
Dow Jones component Goldman Sachs gained 0.6% after the investment bank beat fourth-quarter profit and revenue estimates. Shares formed a bullish three-weeks-tight pattern before reaching a 52-week high on Jan. 5, then pulling back and testing their 21-day line.
Meanwhile, financial services provider Morgan Stanley tumbled following a mixed fourth-quarter earnings report. Shares were down more than 4% in recent action.
Other Stock Movers: Boeing Feels More Pain
Dow name Boeing gapped down nearly 8% in heavy volume and added to recent losses, after Wells Fargo downgraded the stock to equal weight from overweight and cut its price target to 225 from 280. Shares sold off sharply after a 737 MAX 9 plane blew a panel during an Alaska Air flight on Jan. 6.
The aircraft and defense stock has fallen below its 200-day line and was the worst performer on the Dow Tuesday. BA shares are having their worst three-day stint since a trio of trading sessions that ended Sept. 26, 2022, when they fell 11.13%, according to Dow Jones.
Elsewhere on the stock market, Uber Technologies reversed course and advanced on news that the ride-sharing and delivery service company will close its alcohol delivery service, Drizly.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
