The stock market fell Tuesday as the Nasdaq sold off more than 1%. Twitter (TWTR) continued to rally after announcing that Elon Musk will join its board.
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The Nasdaq composite lost 1.3% as technology stocks came off Monday’s rally. The S&P 500 reversed lower to a loss of 0.5%.
The Dow Jones Industrial Average was down 0.2%. Procter & Gamble (PG) rose 1.5% and is back above the 50-day moving average as the stock forms a flat base. Walmart (WMT) is poking above a 152.67 buy point, although a prior entry could be spotted at 146.73.
Volume fell on the NYSE and Nasdaq compared with the same time on Monday.
U.S. Stock Market Today Overview |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 35088.33 | +166.45 | +0.48 |
| S&P 500 | (0S&P5) | 4591.24 | +8.60 | +0.19 |
| Nasdaq | (0NDQC ) | 14464.72 | -67.83 | -0.47 |
| Russell 2000 | (IWM) | 207.64 | -0.27 | -0.13 |
| IBD 50 | (FFTY) | 39.01 | -0.24 | -0.61 |
| Last Update: 10:06 AM ET 4/5/2022 | ||||
U.S. crude oil climbed 1.3% to $104.60 a barrel. The yield on the 10-year Treasury note rose 6 basis points to 2.47%.
Twitter Adds To Its Musk Rally
Twitter added 6% after the social media company said Tesla (TSLA) CEO Elon Musk will join its board of directors. The news follows Monday’s disclosure that Musk acquired a 9.2% stake in Twitter. While Musk is on the board he cannot own more than 14.9% of Twitter’s common stock, the company said in a regulatory filing.
Twitter stock soared 27% Monday on Musk’s ownership disclosure, the largest single-day gain in the company’s history. Volume also was an all-time record, according to Dow Jones Market Data. Twitter shares today climbed above the 200-day moving average for the first time since Oct. 22.
Tesla stock fell 1.4% as it works on a cup base with a 1,208.10 buy point.
Digital World Acquisition (DWAC) slid more than 9% and is on track for its eighth straight decline. Digital World is a SPAC that plans to take public Donald Trump’s social media company, Truth Social, which is a rival to Twitter. The SPAC is down 18.5% this week, after tumbling 11.5% last week.
Carnival Cruise, Teva Among Stock Market Movers
Carnival Cruise Line (CCL) jumped more than 7% after the company reported a record number of bookings the week of March 28-April 3. The week’s bookings topped the previous seven-day record by double digits, Carnival said in a news release.
The cruise line also said 22 of its 23 ships are back in operation after the industry was hit hard by the pandemic. The stock gapped up above its 50-day moving average but is still consolidating below the 200-day line.
Teva Pharmaceuticals (TEVA) extended a three-week rally with a 3.8% gain this morning. Barclays upgraded the generic-drugs maker to overweight from equal weight and raised the price target to 13 from 11. Teva shares are clearing resistance around 10.25.
The Innovator IBD 50 ETF (FFTY) fell 0.6% as many of its technology stocks slid 2% to 4%. Axcelis Technologies (ACSL) lost 5.6% in heavy trading, slipping further below the 75.10 buy point of a March 17 breakout. Axcelis fell more than 7% below the entry, which is a sell signal.
Service Sector Jumps In March
The S&P U.S. Services Purchasing Managers’ Index came out at 9:45 a.m. ET with the largest increase so far this year. The service sector gauge rose to 58 in March from 56.5 in February, although it was lower than the initial estimate of 58.9.
“Business activity in the vast service sector enjoyed a boost from the relaxation of virus-fighting restrictions in March, regaining strong momentum after the omicron-induced slowdown seen at the start of the year,” said Chris Williamson, chief business economist at S&P Global.
Demand for services is growing so fast that the survey saw the largest rise in backlogs of work since the survey began in 2009, Williamson added. With firms’ costs inflated by the soaring price of energy “and other raw materials, as well as rising wages, prices charged for services are rising at an unprecedented rate. Consumer price inflation therefore looks likely to accelerate further as we head into the spring,” he said.
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The post Stock Market Lower As Twitter Extends Gains On Elon Musk News appeared first on Investor’s Business Daily.
