Wednesday, October 23, 2024

Oil Stock Tops The Dow; Defense Stocks Shine, Nvidia Joins Sell-Off (Live Coverage)

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Major stock indexes traded near session lows Tuesday afternoon as a bounce was cut short when Israel came under missile attack. Nvidia (NVDA) joined its Magnificent Seven brethren Apple (AAPL) and Tesla (TSLA) with sharp losses on the stock market today.





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The Nasdaq composite gave up 2.1% in recent action, or around 380 points. The S&P 500 pulled back 1.3%, a day after the benchmark index set a record high.

Also coming off an all-time high on Monday was the Dow Jones index, which is falling 0.7% after a three-day win streak. The Dow’s loss grew to nearly 290 points. A  bright spot was Chevron (CVX), as oil stocks acted strongly.

West Texas Intermediate crude oil jumped more than 5% to near $71.63 a barrel on Middle East worries. Stocks in the sector rose in sympathy as the price of oil surged. Energy Select Sector SPDR (XLE) rose more than 2%.

Indexes tried to rebound but started weakening again around 12:30 p.m. ET, when videos and news flashes told of a massive missile strike from Iran into Israel.

The Russell 2000 also felt the wrath, dropping 1.8%. Volume was higher on both the New York Stock Exchange and the Nasdaq vs. the same time Monday. Losers beat gainers by nearly 3-to-2 on the NYSE and around 5-to-2 on the Nasdaq.

And the 10-year Treasury yield shed eight basis points to 3.715%.

Nvidia Not Exempt From Sell-Off; Defense Stocks Rally

IBD 50 and SwingTrader stock Nvidia dropped nearly 4.5%, according to MarketSurge chart analysis. Shares tested the 50-day line, seeking support.

Defense stocks saw strength even before the missile attack on Israel, which escalates the conflict in the region.

Northrop Grumman (NOC) shot up 3.7% and reached a record high on the stock market today, but pared gains. UBS raised its price target to 614 from 605 and maintained its buy rating on the stock.

Lockheed Martin (LMT) popped 3.4% and also climbed to new highs. New IBD SwingTrader addition RTX (RTX) increased 2.5% as it rises from support at the 10-week moving average.

Going against the tide of selling was IBD 50 insurance stock Ryan Specialty Holdings (RYAN) with its 2.5% gain in heavy volume. Shares nearly touched the 69.03 buy point of a cup base.

Super Micro Computer (SMCI) skidded 3.5% in its first day of trading after its 10-for-1 stock split went into effect. The stock remains in a monthslong downtrend.


12:21 p.m. ET

Stocks Making Moves: Apple Is A Big Dow Jones Loser

ExxonMobil (XOM) gained 1.9% while Chevron (CVX) advanced 1.8% on the stock market today.

Apple tumbled 3.5% in heavy volume on news Barclays analyst Tim Long feels the tech giant’s December quarter “looks to be increasingly at risk,” due to disappointing iPhone 16 demand.

Apple stock is in a choppy consolidation with a 237.23 buy point. Apple was the biggest loser on the Dow Jones today.

Senior living facility operator Pennant Group (PNTG) plunged 8% and tested its 50-day line, seeking support. The move came after the company announced a 3.5 million share public offering with the proceeds to be used for debt repayment.

Shares are coming off a 52-week high reached on Wednesday. Pennant stock is extended from its last breakout in December. Shares have surged 133% so far this year.

Also, Kratos Defense & Security Solutions (KTOS) popped 4.4% and topped a cup base buy zone reaching to 23.91. The lift came after JPM Securities reiterated its market outperform rating with a 27 price target.


10:48 a.m. ET

Stock Market Today: Dockworker Strike Hits Shippers

Around 45,000 dockworkers went on strike at midnight Tuesday at East and Southern coast ports, affecting more than half all American imports and exports. The strike was over wages and benefits.

According to The Wall Street Journal, big retailers said they can withstand the strike because they received merchandise early in the season and utilized West Coasts ports in anticipation of a job action. But leaders warned a “walkout lasting a week or longer would push up shipping costs and might trigger product shortages.”

Shipping companies felt the effects on the stock market today. ZIM Integrated Shipping (ZIM) tumbled around 7%, while FedEx (FDX) sank 1.4% and United Parcel Service (UPS) retreated 2.6%.

Dow Jones component Home Depot (HD) pulled back 0.8% while Best Buy (BBY) slid 2.1% on the stock market today. Both are extended from buy zones.

A Flurry Of Economic News

In other economic news, the final September Purchasing Managers’ Manufacturing Index reading, known as PMI, came in at 47.3 vs. the 47.0 expected but was lower than August’s 47.9. A reading below 50 indicates contraction. New orders decreased for the third straight month and saw the steepest drop since June 2023, according to S&P Global.

The September Institute for Supply Management manufacturing index held steady with August’s 47.2 reading. The number is calculated from a monthly survey of purchasing managers at roughly 300 manufacturing firms nationwide and shows overall factory sector trends.

The August Labor Department’s Job Openings and Labor Turnover Survey, known as JOLTS. showed that job openings increased to 8.04 million vs. the 7.7 million expected and topped the 7.673 million in July. The trend over the last few months had shown a cooling in the job market.

Stock Market Today: Magnificent Seven Movers

Magnificent Seven stock Tesla (TSLA) fell as much as 3.4% ahead of its third-quarter delivery numbers, expected to be released early Wednesday.

Analyst estimates show Tesla global deliveries totaling 462,000 units, up 6% vs. the year-ago quarter, according to FactSet. Tesla is building the right side of a cup base with a 271 buy point.

Fellow Mag 7 stock Alphabet (GOOGL) reversed and dipped 0.3% after early gains. Pivotal Research initiated coverage on the Google-parent stock with a buy rating and a 215 price target.

Shares are in a base resembling a double-bottom with an official buy point of 191.75, but an early entry can be seen at 168.64. Shares reclaimed their 50-day moving average Friday.

Other Stock Movers: McCormick Spices Things Up

Acuity Brands (AYI) jumped more than 5% in huge volume following the company’s higher-than-expected fiscal fourth-quarter adjusted profit and revenue. Shares are well above the buy zone of a cup-with-handle base with a 256.64 buy point. Shares reached a new high on the stock market today before fading.

McCormick (MKC) notched a 0.7% gain following the spice company’s beat on fiscal third-quarter adjusted earnings and sales. Management also raised its fiscal 2024 profit outlook. Shares are in the buy zone of a cup-with-handle base with a 79.37 buy point.

Anheuser-Busch InBev (BUD) climbed 1% and is in the 5% buy zone up to 68.46 of a cup-with-handle base with a 65.20 buy point. Shares climbed after Citigroup upgraded the beverage stock to buy from neutral.

CVS Health (CVS) added another 1.8% on news the struggling drugstore giant is eyeing strategic options, including a company breakup. CVS stock has lost 21% so far this year.

Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.

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