The Dow Jones Industrial Average fell as Boeing (BA) dived after South Korea ordered an inspection into 737-800 planes following a deadly crash. Tesla (TSLA) and Meta Platforms (META) fell about 2%, but Nvidia (NVDA) dug in, as Magnificent Seven stocks came under pressure on the stock market today.
Indexes in general are continuing to fall after Friday’s reversal saw indexes cede Santa Claus rally gains. The Dow Jones dived nearly 700 points, or 1.6%, at 10:32 a.m. ET. Outside of Boeing, Nike (NKE) and American Express (AXP) lagged with drops of more than 2% each.
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The Nasdaq composite skidded below its 21-day exponential moving average, but remains above its 50-day line, amid a drop of 1.8%. Bitcoin play MicroStrategy (MSTR) lagged with a drop of more than 8% and is now below the 50-day moving average. Grail (GRAL) also struggled, dipping nearly 7%. But Diamondback Energy (FANG) was a bright spot due to fractional lift.
Stock Market Today: All Sectors Lag
The benchmark S&P 500 skidded 1.6% and fell below its 50-day moving average. Solar stock Enphase Energy failed to shine, dropping more than 5%. Embattled computer server stock Super Micro Computer (SMCI) tumbled nearly 6%.
The S&P 500 sectors were all in negative territory. Consumer discretionary and industrials were hit the hardest while energy suffered the slimmest decline. Volume is running higher on the Nasdaq and New York Stock Exchange than Friday, a negative given the selling pressure.
Small caps were mauled, with the Russell 2000 dropping nearly 2%. Growth stocks were also spanked, with the Innovator IBD 50 (FFTY) exchange traded fund dropping more than 2%.
Dow Jones Today: Boeing Stock Falls Amid 737 Move
Boeing stock tumbled in early action after South Korea ordered an inspection of all 737-800 planes.
The safety move comes after a deadly crash on Sunday killed 179 of 181 people on board. The Jeju Air flight incident occurred at Muan International Airport in Muan County, South Korea.
Uncertainty still surrounds the exact reasons for the accident. The aircraft’s pilot reported a bird strike before attempting a landing. But after the pilot issued a mayday call air traffic control data cut out.
Video footage suggests the aircraft touched down without its landing gear being deployed. According to the BBC, the aircraft had carried out 13 flights in the 48 hours before the crash.
The Boeing 737-800 is a third-generation derivative of the Boeing 737. The firm is now on its fourth generation of the line, the Boeing 737 MAX.
Boeing stock fell 4% but is bouncing off the 200-day moving average. It remains above its 50-day line, which has been starting to turn higher after a prolonged downtrend.
Magnificent Seven: Tesla Stock, Nvidia Lag
It was a tough opening for the so-called Magnificent Seven group of stocks.
Tesla skidded more than 2%. However it remains above its 21-day exponential moving average, according to MarketSurge analysis.
Overall performance is stout, with its IBD Composite Rating coming in at 93 out of 99. Heavy institutional buying of late is reflected in its Accumulation/Distribution Rating of A-.
Meta Platforms was also lagging on the stock market today, falling nearly 2%. It is testing buyers at its 50-day moving average and is below a flat-base entry of 602.95.
Meta, a member of the prestigious IBD Leaderboard, remains on track for a gain of nearly 66% this year.
Amazon.com (AMZN), Microsoft (MSFT) and Apple (AAPL) each suffered declines of around 2%.
Google parent Alphabet (GOOGL) was down by just over 1%. But Nvidia was outperforming on a relative basis as it turned in a nominal gain. The AI stock is just below its 50-day line but remains up nearly 180% in 2024.
Stock Market Today: Strong Stocks Undercut Key Line
With the stock market uptrend coming under renewed pressure Monday, a few noteworthy stocks were undercutting the 50-day moving average.
Such breaches can be a sell signal. If a stock breaks below the 50-day line in heavy volume and can’t rally back, it’s an indication that buying demand is drying up and the stock’s run is ending. However, if buying support emerges, it can be a bullish indicator.
DoorDash (DASH) has fallen more than 1% below its 50-day line. It comes amid a decline of nearly 2% in today’s session.
It still retains strong gains from a breakout past a 131.21 entry, so this could be an opportunity to take some partial profits.
Costco Wholesale (COST) fell below the key 50-day benchmark after dropping more than 2%. It has also slipped below a flat-base buy point of 923.83. Volume was running slightly above average, a negative. The relative strength line is also slipping. The retailer has an IBD Composite Rating of 83.
IBD 50 stock Hims & Hers Health (HIMS) dropped below the 50-day line amid a decline of more than 5%. Volume was below average here. The stock is in danger of round-tripping gains from a 23.74 cup-with-handle entry.
Please follow Michael Larkin on X at @IBD_MLarkin for more analysis of growth stocks.
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