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Investors Business Daily
Business
RACHEL FOX

Stocks Fade In Afternoon Session, Indexes Close Mixed; Nvidia, Palantir Big Losers

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

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

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.

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