Stock indexes continued to bear the brunt of weak consumer sentiment as the trading week drew to a close Friday. The Dow Jones Industrial Average was hit hard as blue-chip UnitedHealth fell amid a Department of Justice probe, while fellow Dow component Nvidia fell and tested its 50-day moving average on the stock market today.
The Dow plunged 1.7% — losing 748 points — and fell below its 50-day moving average. It wasn't better for the other indexes, either. The S&P 500 tumbled 1.7% as well.
The Nasdaq composite fared the worst among the major indexes as losses deepened to 2.2%. The tech-dominated index also showed damage as it fell below the 50-day moving average. Meanwhile, the small-cap Russell 2000 fell 2.7%, testing its 200-day moving average.
Defensive stocks rose. Among the S&P 500's 11 sectors, consumer staples gained while utilities notched just a bit higher with other sectors in the red.
Volume on the New York Stock Exchange and the Nasdaq was higher compared with the same time on Thursday. Decliners outnumbered advancers on both exchanges by around 3-to-1.
The yield on the benchmark 10-year Treasury note fell seven basis points to 4.43% following the latest economic data.
Purchasing Index Falls; Buffett Report Looms
In economic news, the Purchasing Managers Index fell to a 17-month low of 50.4. The manufacturing sector PMI rose to 51.6 vs. views of 51.3 for February, while the service-sector index missed estimates of 53 and fell to 49.7.
Elsewhere, consumer sentiment as measured in the University of Michigan's survey for February fell to 64.7. The consensus estimate was for 68.
Investors await the annual report from Warren Buffett's Berkshire Hathaway's, due Saturday. Buffett's annual shareholder letter is also awaited for clues on investments but also on the company's growing cash pile.
According to reports, Berkshire had $310 billion in cash at the end of the third quarter, up from $167 billion at the end of 2023. The stock is in a cup base with a buy point of 491.67.
3:12 p.m. ET
These Stocks Flash Sell Signals
Akamai Technologies, GE Vernova, Constellation Energy and Vistra were among several stocks that flashed sell signals on Friday.
Akamai Technologies plummeted and fell below its 50-day moving average after it announced fourth-quarter results. Earnings declined for the second straight quarter while sales growth decelerated to 3%.
GE Vernova, Constellation Energy and Vistra all plunged 8% each. GE Vernova and Vistra stocks tumbled below the 50-day line as well.
2:04 p.m. ET
Stock Market Today: UnitedHealth Tumbles, Growth Stocks Hit
UnitedHealth fell to its lowest point since April after The Wall Street Journal reported that the Department of Justice is investigating its Medicare billing practices. The stock sank deeper below its 50- and 200-day moving averages.
Nvidia fell as it prepares for earnings next week. Some of the artificial intelligence giant's troubles have come via China's DeepSeek, which purportedly can achieve AI goals at a fraction of the cost that Nvidia and U.S. tech firms charge.
But it was reported Friday that Nvidia Chief Executive Jensen Huang believes the initial reaction to DeepSeek was wrong. In an interview with Barron's, Huang observed that DeepSeek's reasoning feature required more "intensive computing" and would drive up demand while its open source model would lead to more companies using AI.
In other stocks, Coinbase gave up early gains and fell sharply. The company announced that the Securities and Exchange Commission will drop a two-year lawsuit that aimed to regulate it as a stock exchange. The matter is pending a final SEC vote.
And in an indication that growth stocks are on the downswing, the Innovator IBD 50 exchange traded fund cratered 7.4%, on pace for a fourth consecutive decline.
A top holding in the index, Hims & Hers Health, plummeted after the Food and Drug Administration noted that a shortage in obesity drugs made by rivals Eli Lilly and Novo Nordisk is over.
12:17 p.m. ET
Futu Breaks Out But More Stocks Flash Sell Signals
Futu Holdings broke out from a cup base at a buy point of 130.50 before pulling back slightly. China stocks have been rallying and got a further boost after Alibaba announced earnings Thursday. Futu holds a Composite Rating of 99 and a Relative Strength Rating of 97.
Sprouts Farmers Market triggered sell signals even though fourth-quarter results topped views. Shares fell below the 50-day moving average in heavy volume. Shares also fell more than 7% below a buy point of 155.64 and triggered the 7% sell rule.
How Invested In The Stock Market Should You Be Right Now?
CarGurus also plunged on its earnings report and fell to its 200-day moving average in heavy volume. In medical software, Weave Communications also plunged below the 50-day line, falling more than 15%, despite that the company beat sales and profit estimates.
Globant sliced through its 200-day moving average in heavy volume while Nu Holdings undercut the 50-day moving average. Ryan Specialty Holdings also fell below the 50-day line and remained just below that line.
11:20 a.m. ET
Stock Market Today: Dow Jones Stocks
Among other stocks on the Dow, tech leader Salesforce fell nearly 3% as the company heads into earnings next week. Amazon.com and Microsoft lagged.
JPMorgan Chase and Goldman Sachs fell below their 21-day moving averages.
Super Micro Computer reversed 5% lower as the AI server giant approached a deadline on Tuesday for filing its accounts for the year ended in June as well as its first quarter. The stock may be delisted if it doesn't make the deadline.
The company said in a business update last week that it would meet those requirements. The company also gave preliminary second quarter results.
Super Micro's chart is bearish, with the 200-day moving average stacked above the 50-day line.
MercadoLibre Breaks Out
Earnings moved MercadoLibre and Booking Holdings.
MercadoLibre reported $12.61 in earnings per share on $6.1 billion in sales, which beat views of $7.90 a share on sales of $5.8 billion. Shares broke out from a double-bottom base with a buy point of 2,146.82. The stock also hit an all-time high on Friday and is extended.
Booking reported sales of $5.5 billion, a 14% year-over-year increase, and earnings per share of $41.55, which showed 30% growth from the prior year. Shares are in a cup base with a buy point of 5,337.24. Booking has a Composite Rating of 95, while its Relative Strength Rating stands at 84.
Spot Bases And Buy Points With Pattern Recognition
Also late Thursday, Square parent Block missed estimates for its fourth quarter with sales of $6 billion and earnings per share of 71 cents. Analysts had estimated 88 cents in earnings per share on $6.3 billion in sales. Shares had fallen below the 50-day moving average ahead of results and plunged further, undercutting a base and the 200-day moving average.
Stock Market Today: Rivian Beats Views
Tesla rival Rivian beat sales views for its fourth quarter. Analysts polled by FactSet had estimated $1.4 billion in revenue and 67 cents in loss per share. Rivian reported a loss of 56 cents per share on sales of $1.7 billion.
But Rivian shares fell in heavy trading. The weekly chart on IBD MarketSurge shows a downward sloping 50-day moving average. Shares slipped but remained within a cup with handle with a buy point of 16.65. Shares are testing support at the 200-day line amid a three-day losing streak.
Please follow VRamakrishnan on X/Twitter for more news on the stock market today.
