The stock market today opened in mixed trade, as tech stocks showed early weakness amid a rebound by other market segments.
The Dow Jones industrial average led the stock market today, rising 0.6% at the starting bell. Verizon (VZ) topped the index, climbing 1.4% after an upgrade to buy from HSBC. Intel (INTC) fell 1.4% — the Dow’s hardest early hit.
The S&P 500 gained 0.3%, with biotech Incyte (INCY) jumping out to an early lead and retailers showing some strength at the open.
The Nasdaq Composite slipped 0.3%. Apple (AAPL) dropped 0.8% early. Facebook (FB) posted the only early gain among the four FANG stock tech leaders. Amazon.com (AMZN) and Tesla (TSLA) suffered the Nasdaq 100’s worst declines, both falling more than 4%.
All three major indexes have fallen in four of the past five sessions. A rally attempt early Tuesday failed just as the Nasdaq met resistance at its 50-day moving average. That left the index facing a possible a dive to its 200-day line.
The question for the stock market today will be whether the Dow Jones industrials and S&P 500 will continue to find support at their 200-day averages. The Dow industrials ended 1.4% above that line on Tuesday, while the S&P 500 held a 0.5% margin.
Fourth-quarter GDP received a better-than-expected revision from the Commerce Department, with Wednesday’s new numbers showing a 2.9% expansion. That topped prior estimates of 2.6% and consensus estimates for an uptick to 2.7%. Estimates for price growth held steady, leaving the GDP price index inflation estimate unchanged at 2.3%.
February pending home sales data are due at 10 a.m. ET from the National Association of Realtors. The Energy Information Administration delivers its weekly oil inventories report at 10:30 a.m. ET.
Walgreens, RH, Lululemon Gain, Tesla Dives In Stock Market Today
Retailers showed early strength, as Walgreens Boots Alliance (WBA) shares jumped 2.2%. The Deerfield, Ill.-based pharmacy reported fiscal second-quarter results above analyst targets. The stock is in the midst of a 12-month decline.
RH (RH), formerly known as Restoration Hardware, bolted 20% higher after reporting a solid fourth-quarter earnings beat.
Amazon dived 4.8% in early action, driving the stock below its 50-day moving average for the first time since October. That put it 12% below its March 13 high, but still up 17% from a January flat base breakout.
Facebook shares found their footing and rose 0.8%. The company introduced new privacy settings that it says will give users more control over their data. “Instead of having settings spread across nearly 20 different screens, they’re now accessible from a single place,” Facebook said on its website. Facebook shares are down 15% so far in March, and ended Tuesday 22% below their February high.
Ireland-based drugmaker Shire (SHPG) spiked 18% in the stock market today. Multiple news agencies reported Japan’s Takeda was in a “preliminary and exploratory” stage of considering a bid for the company. No approach has yet been made to Shire’s board, reports said. Shire shares ended Tuesday down 53% from a July 2015 high.
Electric auto innovator Tesla slumped 5.5% after tumbling more than 8% in heavy trade Tuesday. News reports said that the National Transportation Safety Board was investigating a crash involving a 2017 Tesla Model X in California. Tesla shares are down nearly 19% so far in March, trading at their lowest level in 12 months.
Leaderboard: Lululemon Surges
IBD Leaderboard stock Lululemon Athletica (LULU) spiked 8% after its late Tuesday report showed fourth-quarter earnings and sales comfortably above consensus views, and full-year earnings per share and revenue guidance also above expectations. The stock has been struggling to regain support at its 50-day moving average, ending Tuesday 6% below its early March high.
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