Stocks ended April in a tailspin Tuesday with the major indexes down between 1.5% and 2% for the month's last trading session. Meanwhile, Amazon.com popped in after-hours trading following earnings, and Tesla gave back much of Monday's gains on the stock market today.
The Dow Jones Industrial Average dropped 570 points, or nearly 1.5% on Tuesday. The index dropped back below its 21-day exponential moving average after bumping up to it Monday. The S&P 500 shed nearly 1.6%, while the Nasdaq skidded by 2%. The S&P 500 and Nasdaq sank further below their 50-day moving averages.
The Russell 2000 lagged the major indexes and plunged 2.1%. Volume fell on the Nasdaq and rose on the New York Stock Exchange vs. the same time in Monday's session, in preliminary numbers.
Among exchange traded funds, Invesco QQQ Trust skidded 1.9%. The Innovator IBD 50 ETF fell 2.5% in the stock market today.
West Texas intermediate crude oil fell 1.2% near $81.62 a barrel.
The benchmark 10-year Treasury yield inched up 4.68% after the employment cost index rose 1.2% in the first quarter, to the fastest pace in a year and a half. This follows the Treasury Department's announcement on Monday afternoon that it will need to borrow $41 billion more in the current quarter than initially expected.
In addition, the Federal Reserve was conducting a closely watched two-day meeting on Tuesday. Investors will be listening for any signals on when rate cuts may begin as it continues on Wednesday.
Stock Market Today: Amazon Stock Pops After Hours
Amazon.com fell 3.3% to close Tuesday's regular session. But shares popped after hours as the e-commerce behemoth reported better-than-expected earnings and sales for the first quarter.
Ceco Environmental stock tumbled nearly 15% in heavy trading and knifed below its 50-day moving average, flashing a sell signal. The ventilation and air-pollution products maker missed first-quarter sales estimates. Shares retreated from the buy zone after the stock broke out of an undefined base on April 25.
H&E Equipment Services plummeted more than 18% in giant volume and undercut its 200-day moving average, triggering a sell signal. H&E reported lower-than-expected first-quarter profit and higher revenue than expected. Quarterly earnings were flat compared to last year's quarter. H&E rents and sells heavy equipment used in construction, paving and other industrial uses.
Graphic Packaging gapped down more than 7%, falling below its 50-day line and flashing a sell signal. The food paper packaging company reported worse-than-expected sales for the first quarter and higher adjusted earnings per share. Quarterly earnings fell 14% compared with last year's same quarter on a 7% sales drop.
IBD 50 stock Hubbell plunged 9% in heavy volume and fell below its 50-day line, triggering a sell signal. The electrical and electronic products maker topped first-quarter earnings and sales estimates.
But Hubbell reiterated its outlook for adjusted earnings per share of $16 to $16.50 for fiscal 2024, disappointing analysts. Hubbell stock saw its largest price decrease since March 23, 2020, when it fell 10.2%, according to Dow Jones Market Data.
Another IBD 50 stock, CleanSpark, sold off 9.6% in huge volume and triggered a sell signal after a steep drop below its 50-day moving average. The bitcoin mining stock is on pace for its fifth straight losing day. The price of bitcoin fell 5%, and was near $59,700 in recent trades.
MicroStrategy crashed more than 17% on the stock market today after the company missed first-quarter sales estimates and reported a loss. The company has a large holding in bitcoin.
Eli Lilly Shines On A Gloomy Day
PayPal Holdings broke out of an undefined base with a 68.21 buy point, then reversed below its buy point. The payments processing company reported first-quarter adjusted earnings of $1.08 per share using a new accounting method, while revenue increased 9% to $7.7 billion. The company expects second-quarter sales to grow around 6.5% and its adjusted per-share earnings to rise in the low double digits.
F5 gapped down 9.2% in heavy volume and fell below its 200-day line, triggering a sell signal. The network and server technology company reported better-than-expected earnings for the fiscal second quarter, but lower sales than Wall Street forecasts. Sales have dropped modestly for the last two quarters after five out of six quarters of low-single-digit growth. Fiscal third-quarter estimates call for another drop in sales.
Tesla stock gave back 5.6% after soaring 15.3% Monday. The company announced it is letting go of two executives and its entire supercharge team, as reported by The Information on Tuesday, which cited an internal email.
Eli Lilly stock trimmed larger gains and popped nearly 6% after the drugmaker topped first-quarter adjusted earnings estimates but missed on sales. Lilly raised its full-year adjusted earnings and revenue forecast. Lilly stock reclaimed its 50-day moving average as it forms a flat base with an 800.78 buy point.
Lilly's top drugs include its weight-loss drug Zepbound, which is also used as a treatment for Type 2 diabetes and sold under the name Mounjaro. Lilly stock was a big gainer on the S&P 500 on the stock market today.
Dow Stocks Moving: Warren Buffett Stock Slides
Warren Buffett holding Coca-Cola edged 0.4% lower after the beverage company reported first-quarter earnings and revenue that beat analyst estimates. Shares are at the low end of a buy range reaching to 64.70 from a flat-base buy point of 61.62.
Dow Jones stock 3M gapped up 4.7% and is in the buy zone of a cup-with-handle base with an entry at 91.29, on a MarketSurge weekly chart. 3M also topped an alternate entry at 95.67.
The company beat first-quarter adjusted profit and sales projections and gave a full-year 2024 revenue outlook reflecting the spinoff of its Solventum health care unit. 3M makes a variety of industrial, consumer and health care products including Post-it notepads. 3M was the biggest gainer on the Dow Jones Tuesday.
Stock Market Skids Into Fed; Amazon Rises Late As Two AI Plays Fall
Big Stock Market Movers: Chip Stocks Show Mixed Results
NXP Semiconductors gapped up nearly 3.7% in heavy volume and broke out of a double-bottom base with a 251.96 buy point. The Netherlands-based chipmaker reported better-than-expected first-quarter adjusted earnings and sales. It gave second-quarter profit and revenue guidance that was in line with analysts' estimates.
Meanwhile, chip designer Rambus sank 9.4% even after the company exceeded first-quarter earnings and sales forecasts. The stock sharply undercut its 50-day line, triggering a sell signal on the stock market today.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
