The Dow Jones traded sharply lower on Tuesday as stocks were hammered into the close. Leading the downside was the tech-heavy Nasdaq. Tech leaders Microsoft (MSFT) and Google (GOOGL) are set to report earnings Tuesday evening.
At the close, the Dow Jones industrials lost 2.2% and undercut Monday’s low. The Nasdaq lost 3.8% while the S&P 500 fell 2.6%. The small-cap Russell 2000 was down 3%. According to early data, volume was higher on the Nasdaq and lower on the NYSE vs. the close on Monday.
Market conditions continue to worsen after last week’s sell-off, which led to IBD’s market outlook downgrade. As the market is now in correction, it’s best to avoid buying stocks and instead focus on raising cash. But keeping a watchlist of stocks holding up amid the down market will help you be prepared for the next stock market uptrend.
The Innovator IBD 50 ETF (FFTY), a benchmark for growth stocks, traded down 2.8% as growth stocks continue to take the brunt of the downturn.
Microsoft, Google Earnings After The Close
Two stocks to watch this afternoon are Dow Jones tech giants Microsoft and Google parent Alphabet as their earnings releases could catalyze a big move up or down.
Microsoft, a Leaderboard stock, lost around 3.7% Tuesday. Shares are close to undercutting the low of the current base which shows a 349.77 entry. The stock has a lot of work to do before it reaches the buy point. Shares also remain below the 50-day and 200-day lines.
Analysts expect adjusted profit of $2.18 a share, up 17% year over year. Revenue is expected to pop 17% to $48.96 billion.
Shares of Alphabet lost less than 1% in today’s market but have been fairing worse than Microsoft in recent weeks. There are no proper bases or buy points in the stock at this time. Alphabet is expected to see earnings drop 2% to $25.70 per share. Sales are seen climbing 23% to $68 billion.
Dow Jones Today
Stocks weighing on the Dow Jones Tuesday included Nike (NKE) and Boeing (BA), which lost over 5% each. All 30 components were down at the close, with Chevron (CVX) and Johnson & Johnson (JNJ) fairing the least bad. Both stocks were down less than 1% each.
Nike has been in the news as it releases its first virtual sneaker drop after its acquisition of the non-fungible token (NFT) collectibles brand RTFKT a few months ago. The virtual RTFKT x Nike Dunk Genesis shoes are selling for an average asking price of 3 Ethereum, which roughly converts to $9,000.
Nike’s losses neared almost 6% on Tuesday. The stock has been struggling since late 2021 and remains below key moving averages.
Elsewhere in the Dow, Apple (AAPL) also was among heavy decliners, down 3.7%. Shares broke below support at the 200-day line for the first time since early March. The iPhone maker is still working on a base with a 183.04 buy point and has been pulling back for five-straight weeks.
Follow Rachel Fox on Twitter at @IBD_RFox for more Dow Jones and stock market commentary.
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