The Nasdaq composite was under heavy selling pressure in afternoon trading Tuesday, weighed down by a sell-off in Tesla stock, which dived more than 10%. Tesla‘s (TSLA) weakness comes one day after CEO Elon Musk reached a deal to take Twitter (TWTR) private for around $44 billion.
Nvidia (NVDA), Advanced Micro Devices (AMD) and Amazon.com (AMZN) also lagged badly in the Nasdaq 100, with losses of more than 5% each. Results from Amazon are due Thursday after the close, along with Apple‘s (AAPL).
Selling was less intense in the Dow Jones Industrial Average, but the blue-chip index still fell 1.8%. Weak performers in the Dow Jones today included Nike (NKE) and Boeing (BA), while Visa (V) and Microsoft (MSFT) were under pressure with earnings due after the close today.
Chevron (CVX) was a rare bright spot in the Dow Jones, up 1%. U.S. crude oil futures turned sharply higher in afternoon trading, up more than 3% to $101.75 a barrel.
U.S. Stock Market Today Overview
|Last Update: 1:36 PM ET 4/26/2022|
Bond yields were in focus again, with the 10-year Treasury yield down 6 basis points to 2.76%.
The Nasdaq composite was down just over 3% after rising 1.3% Monday. The Nasdaq undercut Monday’s low, which brings a trip down to its March 14 low into play. A harsh break of this level might be the shakeout the stock market needs to put in a bottom.
Declining stocks outnumbered advancers on the Nasdaq by about 4-to-1.
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Cadence Design Systems (CDNS) bucked the trend in the Nasdaq 100 after reporting strong earnings. But it’s still on a downtrend, stuck below its 200-day moving average.
The S&P 500 was down 2%, hurt by an earnings sell-off for General Electric (GE), which plunged nearly 12%.
But Sherwin-Williams (SHW) and Waste Management (WM) were earnings winners in the S&P 500.
SHW stock gapped up over its April 8 high of 266.77, but it’s still entrenched below its 200-day moving average.
WM’s relative strength line is in new high ground as it tries to break out of a cup-with-handle base with a 165.95 buy point. Group peer Waste Connections (WCN) is near the top of an 18-week consolidation while it holds support at its 10-week moving average.
On the NYSE, losers beat winners by about 3-to-1.
In other stock market news, several leading fertilizer stocks are testing support at their 50-day moving averages for the first time including CF Industries (CF), Mosaic (MOS), and Nutrien (NTR).
Coal Stocks Rally
Coal stocks dominated the upside in the MarketSmith Growth 250, helped by a big revenue beat from Arch Resources (ARCH).
ARCH stock soared more than 20% after the company reported adjusted profit of $12.89 a share, reversing a year-ago loss. Revenue surged 143% to $867.94 million, well ahead of the Zacks consensus estimate of $649 million.
Other coal stocks in the MarketSmith Growth 250 rose sharply, including Alpha Metallurgical Resources (AMR), Consol Energy (CEIX) and Peabody Energy (BTU).
Follow Ken Shreve on Twitter @IBD_KShreve for more stock market analysis and insight.
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