The Dow Jones Industrial Average advanced even as the Nasdaq gave up ground. Tesla (TSLA) fell despite CEO Elon Musk boasting about its new factory at the Cyber Rodeo event while Epam Systems (EPAM) soared as it withdrew from Russia. Home Depot (HD) and Goldman Sachs (GS) were the top blue chips.
A couple of stocks attempted breakouts despite the mixed action. Oil stock Shell (SHEL) and LPL Financial (LPLA) both made bullish moves amid strength in energy and financials.
Volume was lower on both the New York Stock Exchange and the Nasdaq compared with the same time Thursday. Volatility was also lower, with the Cboe Volatility Index, or VIX, down nearly 4%.
Meanwhile, the yield on the benchmark 10-year Treasury note spiked seven basis points to 2.72%. Oil also rose, with West Texas Intermediate crude up 2% to just over $98 per barrel.
Nasdaq Slips As Tech Stocks Suffer
The tech-heavy Nasdaq was faring worst out of the major indexes, falling nearly 1%. Atlassian (TEAM) was the worst Nasdaq stock, falling nearly 6%.
The S&P 500 was managing to scrape a slight gain, but was basically flat. Coterra Energy (CTRA) shined here as it rose more than 7%.
U.S. Stock Market Today Overview
|Last Update: 3:00 PM ET 4/8/2022|
The S&P sectors were mixed. Health and energy were faring best while technology and consumer discretionary turned in the worst declines.
The Russell 2000 was down 0.1%.
Growth stocks also lagged. The Innovator IBD 50 ETF (FFTY), a bellwether for growth stocks, dipped 0.7%.
Dow Jones Gains As Home Depot Stock Shines
The Dow Jones Industrial Average was faring best out of the major indexes, rising 0.6%.
Dow stock Home Depot rose almost 3%. It remains below its 50-day and 200-day moving averages, MarketSmith analysis shows. Goldman Sachs also turned in a solid gain, rising 2.5%. Boeing (BA) lagged once again, falling about 1.5%.
Tesla Stock Lower Despite Elon Musk Boast
Tesla stock fell despite the opening of its Austin-based Gigafactory Thursday.
The Cyber Rodeo event featured music, robots and a petting zoo. CEO Elon Musk boasted about the scale of the firm’s latest facility.
“Giga Texas is the largest factory building in the world by volume,” Musk said. He joked the firm had calculated “you could fit a 194 billion hamsters in this building.”
The CEO also promised that the firm’s much-hyped Cybertruck will finally become available next year.
Tesla stock fell despite Goldman Sachs reiterating its buy rating on the stock. The firm said it is bullish for the full year due to “strong EV demand, the company’s leading ability to navigate the supply chain … and increasing prices for its vehicles.”
Goldman praised Tesla’s ability to quickly source alternate suppliers.
Epam Stock Advances On Russia Withdrawal
EPAM Systems stock shot higher on news it is pulling out of Russia. Its large operations there had been an issue that hit its stock.
The technology outsourcing firm said Thursday it has begun the process to end operations in Russia. Epam said a significant number of employees have relocated already, with more expected to come.
The firm will hire more staff in Europe, Central Asia, India and Latin America to diversify the footprint of its global network.
Stifel welcomed the move, saying in a note “it removes the most visible overhang.”
Epam stock was up more than 12% but remains down more than 50% for the year so far.
Oil Stock Shell Leads Breakouts
Shell stock is actionable after it passed a 56.23 buy point. It built a bullish base-on-base formation with firm support at the 50-day line.
Earnings are also solid, though its EPS Rating of 77 out of 99 is not ideal. Nevertheless, analysts expect the company’s earnings to jump this year. They see EPS surging 61% to $8.04. They also see sales jumping 40% to $365.5 billion.
The recent IBD Stock Of The Day has been attracting investment from institutions. This is reflected in its Accumulation/Distribution Rating of A-.
Meanwhile LPL Financial cleared a cup-with-handle buy point of 191.08. This is a first-stage base, which means it has a higher chance of success.
Big money has also been a net buyer, with 65% of the stock currently being held by funds. Analysts see earnings growing by 35% in 2022 and 50% in 2023. The bullish action saw the stock added to the IBD Leaderboard list of top stocks.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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