Indexes Mostly Lower As Nvidia, SMCI Flash Sell Signals; Tesla Earnings Loom As Bitcoin’s

The Dow Jones Industrial Average was an outlier and continued to show positive action in late afternoon trades Friday as the tech sell-off deepened and the S&P 500 fell below a key psychological level in the stock market today.

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Indexes remained mixed after Israel launched a retaliatory attack on Iran. Nvidia (NVDA), Meta Platforms (META) and Amazon.com (AMZN) fell below the 50-day moving average as Super Micro Computer (SMCI) took a dive.

Bitcoin held near $64,000 ahead of the fourth halving event.

The Dow industrials held a 0.4% gain while the S&P 500 fell 0.9% and to session lows after adding yet another distribution day on Thursday. The index is losing a key psychological level at 5,000. Among the S&P sectors, utilities, energy, financials and consumer staples fared well while communication services, technology and consumer discretionary fell.

The Nasdaq suffered the deepest losses and fell 2.2%, to the day’s lows.

Volume on the NYSE and on the Nasdaq was higher compared with the same time on Thursday. Nonetheless, breadth was mixed as advancers tracked ahead of decliners on the NYSE. On the Nasdaq, decliners had a slight edge in the stock market today.

However, fewer stocks are making new highs, confirming mounting signs of a market under pressure.

The small-cap Russell 2000 reversed 0.6% lower, giving up early gains. The Innovator IBD 50 ETF (FFTY) fell deeper and was over 2% lower.

The yield on the benchmark 10-year Treasury note fell 3 basis points to 4.61%.

Bitcoin held near the $64,000 level as the countdown to the halving began on Friday with just a handful of blocks remaining. The halving will reduce miners’ rewards to 3.125 per block, effectively reducing the number of new bitcoins that will enter circulation over time.

Dow Jones Stocks

American Express (AXP) rebounded in strong volume after first-quarter sales met views and earnings per share came in higher at $3.33 per share versus estimates of $2.98. The stock found support at the 10-week moving average.

UnitedHealth (UNH) also helped lift the Dow, while Amazon.com, Intel (INTC), Microsoft (MSFT) and Apple (AAPL) weighed it down.

Stocks Market Today

Netflix (NFLX) fell 9% after first-quarter results were strong, but the Q2 sales outlook from the streaming giant did not meet estimates. Shares have triggered a sell signal by falling below the 50-day moving average in huge volume. Netflix was the worst performer in the Nasdaq and among the worst performers in the IBD MarketSurge Growth 250.

Intuitive Surgical (ISRG) soared at the open until it hit resistance at its 50-day moving average. Shares are back near Thursday’s closing price. First-quarter results were released late Thursday. Sales rose 11% to $1.9 billion while earnings of $1.50 per share were 22% higher.

Among the Magnificent Seven, first-quarter earnings are due for Tesla (TSLA) on Tuesday. Shares have been trending lower and below the 50-day moving average since January. Analysts expect a 5% decline in sales and earnings to plunge 42% to 49 cents per share.

Nvidia, Amazon and Meta Platforms broke a key level of support at the 50-day line. Nvidia fell 4% and slid below its 50-day line, which should be considered a sell signal. Amazon and Meta haven’t fallen quite as much below their 50-day lines, but their action is worrisome nonetheless.

With that, six of the Magnificent 7 are under their 50-day moving averages.

Google parent Alphabet (GOOGL) is holding just above a 153.78 buy point in the stock market today.

Among other top AI plays, Super Micro Computer (SMCI) plunged 22%. The stock gapped down, sinking further below the 50-day moving average, which is a sell signal. Volume is running well above average. It is another one of the leaders of the market uptrend that have broken down.

Please follow VRamakrishnan on X/Twitter for more news on the stock market today.

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