Stocks closed strong Tuesday with the major indexes all racking up gains amid the two-day Federal Open Market Committee meeting. Magnificent Seven stock Nvidia advanced again, but Super Micro Computer was having another painful session as a new S&P 500 component on the stock market today. Meanwhile, Microsoft announced two key hires.
Stocks improved in final afternoon action with the Dow Jones the clear leader, gaining 0.8%. The tech-heavy Nasdaq finished 0.4% higher after morning losses. Meanwhile, the S&P 500 increased its gain to 0.6% and the small-cap Russell 2000 popped 0.5%.
Volume rose modestly on the New York Stock Exchange and fell on the Nasdaq compared with the same time on Monday, in preliminary numbers.
The Invesco QQQ Trust edged up nearly 0.3%. The Innovator IBD 50 ETF pared larger losses and closed down 0.8%.
The 10-year Treasury yield shed 4 basis points to just under 4.3%. And West Texas intermediate crude oil bumped up to $83.18 a barrel.
Bitcoin Falls, Taking Others With It
Bitcoin's price fell to just above $64,500, taking bitcoin-related stocks down with it. MicroStrategy, which owns a large amount of bitcoin, plunged 5.7% on the stock market today, adding to Monday's 15.7% drop.
Coinbase skidded 4% while Marathon Digital trimmed losses to under 1%. Riot Platforms lost 3%.
Investors are waiting for Federal Reserve Chairman Jerome Powell's policy speech on Wednesday afternoon to see when interest rate cuts might start. There are different views on the timing and amount of rate cuts in the future as inflation hangs on and the job market remains robust.
Magnificent Seven Stock Action: Microsoft Adds Two AI Heavy Hitters
Microsoft added 1% on news it hired artificial intelligence expert Mustafa Suleyman as chief executive of its new division called Microsoft AI. It's also adding Karen Simonyan from the same startup as Suleyman, Inflection AI, of which Microsoft is an investor. The new company will oversee Microsoft's Copilot and its other AI software.
Microsoft shares are extended from a flat base with a 384.30 buy point.
IBD 50 and Leaderboard stock Nvidia seesawed between gains and losses, and ended the day higher by 1.1%. But the stock closed below the 900 level. The moves followed Monday's keynote speech by CEO Jensen Huang to kick off the AI giant's four-day 2024 GTC conference.
Huang introduced Nvidia's newest chip, named Blackwell. Nvidia stock remains well-extended from its prior flat base and sits about 25% above its 50-day moving average.
Apple added 1.4% on top of Monday's 0.6% uptick. The iPhone maker was reportedly in talks with Alphabet to incorporate Alphabet's "Gemini" AI model in Apple's iPhones. Alphabet fell marginally after Monday's 4.6% jump in heavy volume.
Also, Tesla sank more than 1% on the stock market today after Monday's 6.3% bounce.
Oil Stocks Hot New Highs
Oil-and-gas stock Permian Resources hit a 52-week high as some energy stocks rose with the price of oil. Shares broke out of a cup base with a 15.49 buy point on Feb. 28, and are extended past the 5% buy zone that had stretched to 16.26. The move started following Permian's better-than-expected Q4 results on Feb. 27. The IBD 50 stock rose for its 11th straight session.
Competitor Diamondback Energy also reached another fresh all-time high. It has moved through a buy zone out of a flat base with an entry at 171.40.
International Paper jumped 11% and hit the 38.21 buy point of a flat base in heavy volume. The reaction came after the paper products company announced it is replacing its current CEO, Mark Sutton, with KKR advisor Andrew Silvernail, on May 1. International Paper was the biggest gainer on the S&P 500 on Tuesday.
IBD 50 stock Tidewater climbed nearly 3% to an all-time high on Tuesday. The move came after brokerage BTIG raised its price target to 110 from 90 and held its buy rating on the offshore vessel transport stock.
Another IBD 50 name, ACM Research, sold off along with some chip stocks. ACM shares dropped nearly 4%, testing their 21-day exponential moving average and continuing their decline from a 52-week high reached on March 1.
ACM stock rallied following the chip equipment maker's robust fourth-quarter earnings report on Feb. 28. The company topped profit and revenue projections. Shares reversed on March 4, starting the downtrend.
Stock Market Today: Nordstrom Jumps On Talk Of Going Private
Upscale department store Nordstrom popped more than 9% on heavy volume amid a report the retailer's founding family wants to take the company private. Shares were halted for five minutes due to volatility at the start of Tuesday's session, according to Dow Jones. Nordstrom reclaimed its 200-day moving average and tested its 50-day line on the stock market today.
Shares plummeted following the retailer's fiscal 2024 earnings outlook that came in below analyst forecasts on March 5.
Rival department store Macy's is also considering a sale. Arkhouse Management and Brigade Capital Management raised their current bid to buy Macy's to $24 a share in cash, from their previous bid of $21 a share, according to a March 14 Barron's article. Shares gained 1.4% on Tuesday.
In other news, copper stocks pulled back after a recent rally. Southern Copper shed nearly 3% after reaching an all-time high on Monday. Shares are extended from a flat base with a 88.40 buy point. Freeport-McMoRan eased 0.3% after hitting a 52-week high on Monday.
Super Micro Computer Sinks
Super Micro Computer stock tumbled 9% on news that the server and software maker announced an offering of 2 million shares. The drop follows Monday's 6.4% sell-off. The AI player fell below its 21-day line with Tuesday's move.
Shares fell below the 900 price level in Tuesday's session but ended the day around 910. Super Micro stock was added to the S&P 500 on Monday and was the worst performer on the benchmark index on the stock market today.
GigaCloud Technology plunged more than 13%, adding to Monday's 20.7% sell-off in heavy volume. The stock found support at its 50-day line after falling from a 52-week high on Friday.
Stock Market Today: Tencent Pops
Tencent Music Entertainment popped more than 6% after the China-based streaming music and entertainment platform operator reported in-line fourth-quarter earnings and revenue that topped views. Shares hit the 10.70 buy point of an ascending base and are in a 5% buy zone.
DLocal plummeted more than 17% after the South American global payments company missed its fourth-quarter earnings estimates but beat sales views. The stock fell below its 50-day line, triggering a sell signal.
Advanced Micro Devices gapped down nearly 5% and undercut its 21-day line but stopped before hitting its 50-day line on the stock market today. Its relative strength line has made a sharp reversal after its March 8 high.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
