The Dow Jones Industrial Average fell late while the Nasdaq took a tumble. Twitter (TWTR) reversed, with an analyst saying now is the time to sell due to the Elon Musk takeover “circus.” Tesla (TSLA) also skidded lower while Nike (NKE) was a top blue chip performer.
A number of stocks tested entries despite the uncertain action. Star Bulk Carriers (SBLK), Owl Rock Capital (ORCC) and Service Corporation International (SCI) all moved above buy points.
Volume was mixed, rising on the New York Stock Exchange but falling on the Nasdaq, according to early data.
Meanwhile, the yield on the benchmark 10-year Treasury note rose about 14 basis points to 2.83%. Oil popped, with West Texas Intermediate crude up about 2% to more than $106 per barrel.
Investors were digesting economic data. Retail sales rose 0.5% in March from the previous month, basically in line with economists’ expectations. Excluding autos, sales increased 1.1%, also in line with views. The number of jobless claims rose last week to 175,000 from 167,000 the previous week. However, this was under the 185,000 expected by economists, according to Econoday data.
Nasdaq Dives As Yields Spikes
The Nasdaq took a dive as yields rose again. The tech-heavy index closed the day down 2.1%. China e-commerce stock Pinduoduo (PDD) fared worst as it slid nearly 9%.
The S&P 500 also gave up ground, dropping 1.2%. State Street (STT) was also a laggard here as it fell 8.5%.
U.S. Stock Market Today Overview
|Last Update: 4:08 PM ET 4/14/2022|
The S&P sectors were mostly negative. Energy and utilities were the only areas in the green while technology and communication services were the worst areas.
Small caps were also subject to a bear attack, with the Russell 2000 falling 1%.
Growth stocks offered no crumbs of comfort. The Innovator IBD 50 ETF (FFTY), a bellwether for growth stocks, dipped 1.1%.
Dow Jones Struggles As Nike Stock Leads
The Dow Jones Industrial Average closed the day down more than 100 points amid late pressure. It skidded 0.3% lower.
Sportswear stock Nike was the best performer thanks to a gain of 4.7%. NKE stock will now look to retake its 50-day moving average.
It was narrowly ahead of Caterpillar (CAT), which rose 4.4%.
Apple (AAPL) and Salesforce (CRM) were the worst laggards. AAPL stock closed down 3% while Salesforce dipped 3.2%.
Twitter Stock Mixed Amid Elon Musk ‘Circus’
Twitter stock was whipsawing during a twisty session. A spate of late selling saw it close 1.7% lower.
The stock initially jumped on the news Elon Musk has offered to take the company private, before reversing lower.
Musk is offering 54.20 per share cash to buy the rest that he doesn’t own, giving him 100% of the firm, which he said is his “best and final offer” in a letter to Twitter Chairman Bret Taylor.
Stifel analyst Mark Kelley downgraded Twitter stock from hold to sell Thursday, warning a “full blown Elon circus” could result in a brutal pullback if he opts to sell off his 9.2% stake.
He also said that the takeover attempt has set a “near-term ceiling on shares” and that the share price has now been detached from fundamentals.
Meanwhile, Musk said during a Ted2022 talk Thursday that he has the assets to purchase Twitter. He also said that he doesn’t “care about the economics at all” and that he is focused on having a trusted and inclusive public platform.
Meanwhile the Wall Street Journal has reported that Twitter executives are considering implementing a so-called poison pill plan to prevent Musk from substantially increasing his stake.
Tesla Stock Dives, Loses Key Level
It seems Tesla stock may be caught in the maelstrom as it skidded lower Thursday.
Investors may be concerned about Musk losing focus on the EV giant as he tries to take over Twitter.
Tesla stock finished the session down 3.7% and is seeing its relative strength line waver. It slipped just below the 1,000 level and its 21-day exponential moving average.
A wild card for Tesla owners is the fact earnings are set to be reported on April 20.
An approach highlighted by Investor’s Business Daily is to use options as a strategy to reduce risk around earnings. It’s a way to capitalize on the upside potential of a stock’s move around earnings, while reducing the downside risk.
Shipping Play Among Stocks Testing Buy Points
Star Bulk Carriers is bullishly clearing its 10-week moving average. This is being used to offer an entry of 28.75, with the buy zone topping out at 31.62.
The Greek shipping giant impressed by showing strength during a broad pullback in transport names. It is now looking to move higher again.
Its bullish behavior has landed SBLK a place on the prestigious IBD Leaderboard list of top stocks.
Meanwhile, Owl Rock Capital is actionable after the stock clambered clear of a 15.24 flat-base entry.
The stock shows a rising relative strength line, which is an encouraging sign, especially during the current stock market volatility.
Owl Rock provides direct lending to middle-market companies. After several weak quarters, EPS rose 21% in Q4.
Hot industries come and go, but funerals will always be in demand. As such, Service Corporation International may be an attractive option for investors looking for stability in an uncertain market.
The stock is just below its entry after earlier moving clear of a cup base buy point of 71.81. All-around performance is strong, with its IBD Composite Rating coming in at 94 out of 99.
While earnings are seen sliding 34% in 2022, they are expected to come back in 2023, with 10% growth seen by analysts.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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The post Dow Jones Falls; Twitter Reverses Amid Elon Musk ‘Circus,’ Tesla Stock Dives; Shipping Play Offers Entry appeared first on Investor’s Business Daily.