The Dow Jones fell as the stock market was crushed. are you here (TSLA) plunged amid reports that Elon Musk may become interim CEO of Twitter (TWTR) if he completes his capture. apple (AAPL) and Microsoft (MSFT) offered no recourse as technology stocks fell.
With the market in a correction, it is good to find stocks flexing amid downward pressure. Automatic data processing (ADP), Dillard (DDS) and general dynamics (GD) They all saw their Relative Strength lines reach their highest levels on Thursday as they built bullish bases.
Volume on the Nasdaq and New York Stock Exchanges increased compared to the same time on Wednesday. This is a bad sign on a landing day.
Meanwhile, the benchmark 10-year Treasury yield rose 18 basis points to 3.1%. The move followed the Federal Reserve’s decision on Wednesday to raise interest rates by half a point and begin reducing its balance sheet.
Oil was slightly lower, with West Texas Intermediate crude down less than 1% to trade around $107 a barrel.
Crush the Nasdaq with Struggle Tech Stocks
The stock market gave up Wednesday’s gains that came after Federal Reserve Chairman Jerome Powell’s press conference.
The Nasdaq was the hardest hit on Thursday, falling nearly 5 percent. Aware Technology Solutions (CTSH) was among the worst performers, down about 13% after it cut routing.
The S&P 500 is also down, down more than 3%. etsy (ETSY) was among the worst offenders here. It fell nearly 17% after providing a poor forecast during its most recent quarterly report.
Overview of the US stock market today
|Dow Jones||(0 DJIA)||33062.90||-998.16||-2.93|
|S & P500||(0S&P5)||4155.62||-144.55||-3.36|
|defect 50||(fifty fifty)||32.18||-1.04||-3.13|
Last update: 1:24 PM ET 5/5/2022
Keep in mind that the S&P 500 or Nasdaq has to fall 7% in order for the circuit breaker to start and stop trading in the market.
All S&P sectors were negative. Consumer discretion and technology were worse off with utilities being the best.
Small caps were crushed, with the Russell 2000 dropping 4%.
Growth stocks also fell sharply. The Innovator IBD 50 ETF (FFTY) is down more than 3%.
Dow Jones cast nearly 1,200 points
The Dow Jones Industrial Average was hit by the bears, falling as much as 1,200 points, although it recovered slightly to nearly 1,000 points in afternoon trading, a drop of about 3%.
The extensive nature of the losses is alarming. sales force (CRM) was the worst performer, declining nearly 8%. It appears that it is ready to close a short term rally and lose more ground on its major moving averages.
nike (NKE) was another lag, falling nearly 6%. Home Depot (HD) also collapsed, at over 5%.
There was no positive side, with Amgen (AMGN) and coca cola (KO) top performers by virtue of the fact that they fell less than 1% each.
Apple Stock and Microsoft Offer No Recourse as Big Tech Collapses
Big tech has always acted as a haven for investors but that certainly wasn’t the case on Thursday.
Apple was among the worst performers on the Dow, down 5%. It has now slipped back below its 200 day moving average. MarketSmith analysis shows that it lost more ground at a buy point at 183.04.
Leaderboard, Microsoft, was another failure. It’s down about 5%. It continues to consolidate below its major moving averages, despite the recent strong earnings report.
Google Parent the alphabet (GOOGL) was near session lows losing nearly 5%. Its losses are dwarfed by the e-commerce giant Amazon.com (AMZN), which fell about 7%.
Tesla Stock Gets Hit Amid Elon Musk’s Twitter Report
Tesla stock has taken a hit again amid further revelations about CEO Musk’s move to take control of Twitter.
The stock sank more than 7% after a CNBC report that an eccentric CEO will serve as interim CEO if he completes the $44 billion takeover deal.
Twitter’s current CEO, Parag Agrawal, led the company for only a few months after founder Jack Dorsey stepped down. Meanwhile, Elon Musk revealed that he received $7 billion in new funding to fuel his deal to buy the social media company.
Twitter was one of the stocks that made progress thanks to the news. It rose more than 3%.
Outside the Dow: These 3 Stocks Build the Bases
When the stock market is in turmoil, the best service for investors is to build their own watch list.
Look for stocks, like the ones below, that show relative strength. Everyone has seen RS lines reach new heights today
The automatic data processing is worth a watch as it makes a cup base with a handle. The ideal buy point is 240.73. However, the stock was down nearly 5% on Thursday.
The company boasts solid earnings. Additionally, it is among the top 11% of stocks in terms of stock market performance over the past 12 months.
Dillard’s Play Store is making a teacup base with an ideal entry point of 416.81, according to MarketSmith analysis.
General Dynamics is building a flat base with an entry point of 255.09. The stock managed to cross the 10-week streak this week, which is an encouraging sign.
General Dynamics and other defense stocks jumped at the start of the Russian invasion of Ukraine. This is prompting Europe and other countries to significantly increase defense spending, which should benefit these companies in the long run.
Last week, General Dynamics outperformed Wall Street views on the top and bottom lines for the fourth quarter.