The Dow Jones Industrial Average was the only major benchmark to hold gains on Monday, while the S&P 500 and Nasdaq composite turned negative after paring early gains. Tech stocks were rocked by losses in prominent tech giants Nvidia and Palantir after earnings-related announcements.
Nasdaq Struggles As Tech Stocks Lead Downside
Stocks slid off intraday highs in afternoon trading on Monday, following three weeks of strong gains in the S&P 500 and Nasdaq. Major indexes have been trading above support at their 50-day lines but still face resistance at their overhanging 200-day lines.
At the close, the Dow was up 0.1% while the S&P 500 and the Nasdaq were down 0.1%.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 32831.92 | +28.45 | +0.09 |
| S&P 500 | (0S&P5) | 4140.05 | -5.14 | -0.12 |
| Nasdaq | (0NDQC ) | 12644.46 | -13.10 | -0.10 |
| Russell 2000 | 192.82 | +2.02 | +1.06 | |
| IBD 50 | 29.33 | +0.06 | +0.20 | |
Last Update: 4:10 PM ET 8/8/2022 |
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Small caps held intraday gains better than major benchmarks, with the Russell 2000 up 1.1%. Volume was running higher on the Nasdaq and the NYSE vs. the same time on Friday.
Energy and real estate sectors led the upside among the 11 S&P 500 sectors, while technology easily led the downside. Technology Select Sector SPDR fell 0.9% in reaction to chip weakness.
Nvidia Falls On Big Revenue Miss
Chip leader Nvidia shocked investors early Monday, warning about weaker-than-expected sales for the quarter ending July 31. The firm pre-announced revenue of $6.7 billion, far below the chip designer's prior guidance of $8.1 billion. Nvidia cited weakness in gaming as a primary culprit.
Shares of Nvidia gapped down and closed around 6.5% lower, testing support at their 21-day exponential moving average. Shares of sector rivals Advanced Micro Devices and Broadcom were down 2% and 1.3%, respectively.
Palantir also fell on earnings news, with the defense tech firm shedding more than 14% after reporting an unexpected Q2 loss. Shares gapped below support at their 21-day exponential moving average. Palantir loss 1 cent per share on sales of $473 million.
Outside Nasdaq: Stocks Breaking Out
A handful of stocks broke out but several faded from buy points. A few showed strength and closed higher, including oil and gas firms Petroleo Bras and New Fortress Energy.
Petroleo Bras broke out above a 14.98 cup entry. Shares rallied over 6% on strong volume while the stock closed within the 5% buy zone.
The relative strength line of Brazil's energy giant also notched a new high on the weekly chart alongside the breakout.
New Fortress Energy rose 4.4%, closing above a 52.47 buy point. The stock's RS line also hit a new high.
Both stocks were boosted higher thanks to rising oil prices. Crude oil rose 1.6% to around 90.30 per barrel while the Energy Select SPDR ETF gained 0.5%.
Elsewhere, building construction products stock Griffon Corporation rose 4.9% and traded near the upper edge of a 5% buy zone from a 31.12 cup entry. Investors should note this small cap is thinly traded, below the ideal $20 to $25 million average daily volume.
Follow Rachel Fox on Twitter at @IBD_RFox for more Nasdaq and stock market commentary.
