The stock market concluded Tuesday with a rise in the last 90 minutes. The Dow Jones Industrial Average ended the day the strongest, while other indexes saw small gains.
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In today’s stock market, the Dow saw improvement in the final minutes of the day, gaining nearly 0.4%. The S&P 500 also strengthened, edging up 0.2%, and the Nasdaq turned around for a 0.1% increase. The small-cap Russell 2000 fared better than the major indexes, jumping nearly 0.9%.
The Invesco QQQ Trust (QQQ) edged 0.2% lower, while the Innovator IBD 50 ETF (FFTY) pulled back 0.3%.
Volume rose on the New York Stock Exchange and fell modestly on the Nasdaq compared to the same time Monday, according to preliminary results.
At the same time, the 10-year Treasury yield dropped 7 basis points to 4.09%.
Major Equities Mixed: Nvidia Takes a Pause
Leading companies and IBD 50 member Meta Platforms (META) retreated by 1%, while Nvidia (NVDA) took a breather from all-time highs to close with a 1.6% loss. The prominent chip and AI stock had an impressive run and is well above the 20% profit zone of a 505.48 buy point.
On the other hand, Alphabet (GOOGL) added 0.3%. Apple (AAPL) increased by 0.9%, while Microsoft (MSFT) dropped by less than 0.1% and Amazon.com (AMZN) reduced by 0.7%.
Tesla (TSLA) rose by 2.2% despite a downgrade by Daiwa to neutral from outperform with a 195 price target. Piper Sandler also cut its price target on the electric-vehicle maker’s stock to 225 from 295 and maintained its overweight rating.
Stock Market Movers: Super Micro Hits New High
Water technology and equipment company Xylem (XYL) gapped up 4.8% in heavy volume and broke out of a cup-with-handle base with a 114.89 buy point.
Xylem surpassed its fourth-quarter EPS and sales estimates and provided first-quarter and full-year 2024 profit and sales projections that exceeded analysts’ expectations. Quarterly earnings growth slowed to 8% from 14% in the prior quarter on 41% sales growth.
Xylem reached a 52-week high with the stock marking its highest close since Jan. 4, 2022, when it closed at $118.13.
IBD 50 component Super Micro Computer (SMCI) reached an all-time high before slumping as much as 4% lower. However, the stock closed 2.8% higher for the day. Shares have experienced significant growth since the data center specialist reported better-than-expected fiscal second-quarter profit and revenue on Jan. 29. Super Micro also raised its fiscal 2024 sales forecast due to strong demand for AI systems.
GE HealthCare Technologies (GEHC) surged 11.7% in heavy volume following the firm’s higher-than-expected fourth-quarter adjusted earnings and sales. The medical device maker issued 2024 adjusted earnings projections that exceeded analysts’ estimates.
Shares climbed above a 78.33 handle entry and are approaching an 83.14 alternative buy point. The stock was the top gainer on the S&P 500 Tuesday.
Ford Motor (F) gained 4.1% prior to its fourth-quarter earnings report after market close. The stock faced resistance at its 200-day moving average.
Electronics Stock Declines
Symbotic (SYM) plummeted 23.6% in heavy trading after the warehouse robotic technologies company reported in-line results for its fiscal first-quarter. Symbotic stock fell below its 50-day and 200-day lines, signaling a sell-off.
Fabrinet (FN) gapped down 18.4% in heavy volume, despite beating fiscal second-quarter profit and revenue expectations. The switch and electronic components maker projected a fiscal third-quarter outlook that fell short of analysts’ estimates.
Vertex (VRTX) dropped around 3% even after the cystic-fibrosis-drug maker reported slightly higher fourth-quarter profit and sales than analysts expected. The drug stock retraced from a 52-week high reached on Jan. 30.
Vertex shares are extended from a flat base buy zone stretching to 406.79. Its relative strength line is showing a sharp downtrend.
Stock Market Shifts: Palantir Soars
Palantir Technologies (PLTR) soared 30.8% in huge volume after the data analytics and privacy software firm reported in-line fourth-quarter earnings and higher-than-expected revenue. Quarterly profit rose by 100% on 20% sales growth.
Shares exceeded the 5% buy zone of a 20.24 entry point of a cup base. However, Palantir stock broke out past a 21.85 buy point. Tuesday’s move was the largest increase on record for the company, according to Dow Jones Market Data.
Eli Lilly (LLY) fell back by 0.2%. This followed the drugmaker’s outperformance in fourth-quarter earnings and sales estimates as well as a full-year 2024 earnings and revenue forecast that surpassed expectations. Its Zepbound weight loss drug sales surpassed revenue estimates, while its Mounjaro diabetes drug sales soared.
The stock is extended from a flat base 629.97 buy point, according to MarketSmith pattern recognition. Shares reached an all-time high in today’s stock market before retracing.
Oil giant BP (BP) surged by 6.3% after reporting higher-than-expected fourth-quarter adjusted earnings and missing sales projections. BP also announced an increase in its share buyback to $1.75 billion in the first quarter, up from $1.5 billion in the prior quarter. As a result, the oil stock reclaimed its 50-day line.
Stocks Ignore Losses, Palantir Soars; Snap Plunges Late
More Stock Action: Rambus Sees Decline
Spotify (SPOT) eased off from larger gains and closed up by 3.9% after the music streaming company reported a smaller fourth-quarter loss and lower sales than expected, as well as a higher number of new subscribers. Spotify stock is extended from a 202.88 flat-base entry. Shares reached a 52-week high today.
Chipmaker Rambus (RMBS) plummeted by 19.2% in heavy trading despite beating fourth-quarter earnings but missing sales estimates. The drop below the 50- and 200-day lines triggered a sell signal.
DocuSign (DOCU) reduced losses to 2%. The company announced plans to cut about 6% of its staff as part of a restructuring plan. The electronic signature and online document solutions platform closed down for a sixth consecutive day.
The company’s shares plunged by nearly 8.5% on Monday after Reuters reported that private equity companies Bain Capital and Hellman & Friedman paused talks to acquire DocuSign due to struggles in reaching a price agreement. DocuSign stock dropped below its flat base and fell below its 50-day line on Monday, signaling a sell-off. It rebounded off its 200-day moving average in today’s stock market.
Asset management firm KKR (KKR) advanced by 5.8% after surpassing its fourth-quarter top and bottom line estimates. On a weekly chart, the IBD Leaderboard stock is extended from a flat base with an 85.66 entry. The buy zone reached 89.94.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
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