The Dow Jones Industrial Average advanced while the Nasdaq gave up ground as the stock market split. Tesla (TSLA) fell despite CEO Elon Musk making a boast and a bullish Wall Street call. 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 aggressive moves amid strength in energy and financials.
Volume was lower on both the New York Stock Exchange and the Nasdaq according to early data. Volatility was also lower, with the Cboe Volatility Index, or VIX, down nearly 2%.
Meanwhile, the yield on the benchmark 10-year Treasury note rose less than one base point to 2.71%. Oil also rose, with West Texas Intermediate crude up 1.9% to just under $ 98 per barrel.
Nasdaq Dives As Tech Stocks Suffer
The tech-heavy Nasdaq fared worst out of the major indexes. It closed at lows for the day as it gave up 1.3%. Atlassian (TEAM) was the worst Nasdaq stock, falling 7.2%.
The S&P 500 reversed lower, giving up 0.3%. Enphase Energy (ENPH) fared worst as it gave up almost 6%.
US Stock Market Today Overview
|Index||Symbol||Price||Gain / Loss||% Change|
|S&P 500||(0S & P5)||4488.68||-11.53||-0.26|
Last Update: 4:06 PM ET 4/8/2022
The S&P sectors ended the day mixed. Health and energy performed best while technology and consumer discretionary turned in the worst declines.
Small caps were forced lower, with the Russell 2000 falling 0.7%.
Growth stocks were also mauled by the bears. The Innovator IBD 50 ETF (FFTY), a bellwether for growth stocks, closed down 0.9%.
Dow Jones Gains As Home Depot Stock Shines
The Dow Jones Industrial Average fared best out of the major indexes as it rose almost 140 points, or 0.4%.
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 2.3%. Boeing (BA) lagged once again, falling about 1.6%.
Tesla Stock Falls After Elon Musk Boast
Tesla stock fell following the opening of its Austin-based Gigafactory Thursday.
The Cyber Rodeo event featured music, robots and a petting zoo. CEO Elon Musk also 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.
Tesla stock closed down 3%. It is still holding above the 21-day exponential moving average, which sits close to the 1,000 level.
Tesla is a member of the prestigious IBD Leaderboard list of top stocks.
Epam Stock Charges 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 closed slightly off high, but still rose 10.1%. It remains down more than 50% for the year so far.v
Split Market Rally At Turning Point; Tesla Forges New Entry
Oil Stock Passes Buy Point
Shell stock closed just below its after earlier passed a 56.23 buy point. It ended the day up 1.1% 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 ended the day clear of 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 at 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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