The Dow Jones Industrial Average was at session lows as indexes continued to retreat. Tesla (TSLA) took a dive after CEO Elon Musk announced a product move. AMC Entertainment (AMC) plunged as rival Cineworld is considering filing for bankruptcy. Coinbase (COIN) and Riot Blockchain (RIOT) were down sharply as Bitcoin fell.
Meanwhile a couple of noteworthy stocks attempted breakouts despite the challenging action. Oil stock Equinor (EQNR) gushed past a buy point while Sprouts Farmers Market (SFM) tested an entry.
Volume was lower on both the Nasdaq and the New York Stock Exchange vs. the same time on Friday.
The yield on the benchmark 10-year Treasury note was up four basis points to 3.03%. West Texas Intermediate crude oil was almost flat at nearly $91 per barrel.
Nasdaq Dives As Small Caps Crumble
The Nasdaq was near lows for the day as it fell almost 3%. Netflix (NFLX) tumbled here following a CFRA downgrade. It gave up more than 6%.
The S&P 500 was also struggling badly, falling more than 2%. Aptiv (APTV) fell over 7%.
U.S. Stock Market Today Overview
|Last Update: 3:04 PM ET 8/22/2022|
The S&P 500 sectors were all in the red. Consumer discretionary and technology were the worst performing areas, while energy held up best.
Bears were also having small caps for lunch, with the Russell 2000 sliding over 2%.
The Innovator IBD 50 ETF (FFTY), a bellwether for growth stocks, was holding up a bit better as it fell less than 1%.
Dow Jones Today: Microsoft Stock Slumps
The Dow Jones Industrial Average was getting hammered, with almost all components falling. It was down about 2%.
Microsoft (MSFT) was one of the worst Dow performers as it fell nearly 3%. MSFT is trying to reach its 200-day moving average. Given Microsoft is an IBD Long-Term Leader, this key level can be used as an entry point.
But it was Microsoft’s old partner Intel (INTC) that was having the worst time on the Dow Jones average today. It fell more than 4% for the day and is now among the worst 18% of stocks tracked over the past 12 months. Volume was running at about average levels.
Tesla Stock Dives After Elon Musk Revelation
Tesla slid after Musk announced that the price of Full Self-Driving software for vehicles will increase by 25% in September.
But Musk also promised in a tweet that the “current price will be honored for orders made before Sept. 5, but delivered later.”
It currently costs $12,000 for FSD, which is the name of the firm’s premium driver assistance software. Subscriptions cost $199 per month.
Tesla stock fell nearly 3% on the stock market today. It fell further adrift of the key 200-day moving average, according to MarketSmith analysis.
AMC Stock Craters As Rival Considers Bankruptcy
It was another tough day for meme-stock investors. This time it was AMC stock that made the headlines after it fell more than 40%.
Even when combined with the newly traded “APE” shares, which were distributed to existing shareholders Monday, the stock was well down for the day. The AMC-APE move is effectively a two-for-one stock split.
AMC stock was getting pounded after it emerged rival Cineworld is considering filing for bankruptcy. AMC stock had already fallen by 26% last week.
GameStop (GME), the original meme stock, fell about 6% while Bed Bath & Beyond (BBBY) plunged by yet another 11%. BBBY stock is down almost 38% over the past five sessions.
Coinbase Stock, RIOT Fall As Bitcoin Dips
Coinbase was near lows for the day as it fell almost 4%. While the relative strength line continues to fall, volume was lighter.
The crypto trading platform, which slashed its full-year forecast earlier this month, continues to lose ground on the 21-day exponential moving average. It could soon be set for a test of the 50-day line. COIN shares have fallen by almost 72% since the start of the year.
Bitcoin was actually off its lows for the day. It was trading just above the $21,000 mark after giving up more than 1% in the past 24 hours, according to CoinDesk. It is now at levels last seen in July.
Other cryptocurrency plays were also dipping. The Grayscale Bitcoin Trust (GBTC) fell almost 2% while Bitcoin mining play Riot Blockchain (RIOT) tumbled more than 3%. RIOT did manage to climb off session lows.
In other cryptocurrency news, it has emerged around $55 million of non-fungible tokens are facing liquidation amid the BendDAO debt crisis.
Outside Dow Jones: Oil Stock New Leader After Passing Entry
Equinor sits in a buy zone after clearing a handle entry of 38.56. The relative strength line is moving higher, and a further spike in energy prices could send it soaring once again.
It has been on a tremendous run dating back to late 2021. Overall performance is very strong, with EQNR stock holding a perfect Composite Rating of 99.
Equinor, the state-owned Norwegian energy company, is a key supplier for Europe, which is no longer able to depend on Russia as a major natural gas supplier. Its move saw the EQNR added to the prestigious IBD Leaderboard list of top stocks.
Sprouts Farmers Market is trading just below its entry after earlier passing a cup-with-handle buy point of 31.59. The relative strength line is moving bullishly.
All-around performance is strong here. The supermarket play is also in the top 6% of stocks in terms of price performance over the past 12 months.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more analysis of growth stocks.
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