The Dow Jones Industrial Average and other major indexes fell to close Tuesday’s trading session. Nvidia (NVDA) fell after investors were disappointed by a sales report from chip supplier Taiwan Semiconductor (TSM), but Google-parent Alphabet (GOOGL) soared into a buy zone on the stock market today.
Blue chips on the Dow finished 0.4% lower. The S&P 500 fell 0.3% while the Nasdaq gave up the morning’s gains and dropped 0.3%.
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Google Takes Quantum Leap But Growth Weak Again; AppLovin, Insulet In Focus Too
The small-cap Russell 2000 saw gains fade and fell 0.4% at the closing bell. The index is testing the 21-day exponential moving average for the first time since mid-November.
Volume was lower on the New York Stock Exchange and on the Nasdaq compared with the same time on Monday. Decliners led advancers by 5-to-3 on the NYSE and by nearly 3-to-2 on the Nasdaq.
Meanwhile, the Innovator IBD 50 (FFTY) exchange traded fund fell 2.1% after a 4% loss on Monday. And the yield on the benchmark 10-year Treasury note rose three basis points to 4.23%.
Nvidia Stock Falls Below 50-Day Line After Taiwan Semi Report
Magnificent Seven stock Nvidia fell below the 50-day moving average in light volume on Tuesday. Shares fell 2.7% at the close.
Nvidia fell after supplier Taiwan Semi reported sales grew 34% annually in November but declined 12.2% from October. Taiwan Semi said that from January to November, sales grew 31.8% compared with the same period in 2023. Taiwan Semi shares fell 3.6%.
Nvidia sits on IBD Leaderboard, as does an Nvidia hedge, the Granite 2x Short NVDA Daily ETF (NVD). Nvidia also is on IBD 50 as well as on the AI Stocks to Watch list.
A Dow Jones component, Nvidia fell more than 2% on Monday amid news of a probe by Chinese regulators into possible monopoly practices.
3:30 p.m. ET
Inflation Data Next
Critical inflation data is up ahead for investors, as the U.S. Bureau of Labor Statistics is expected to release its consumer price index report for November on Wednesday. The CPI is expected to show price increases of 0.3% month on month and 2.7% annually. Core inflation is seen rising 0.3% as well, with an annual increase of 3.3%. The bureau’s producer price index comes Thursday.
2:18 p.m. ET
Database Giant Dives After Earnings
Oracle (ORCL) plunged on its earnings report. The database giant triggered a sell signal as it broke below its 50-day moving average in heavy trading.
Oracle sales of $14.06 billion fell below analysts’ estimates of $14.12 billion while earnings of $1.47 per share missed views by 1 cent. Shares had rallied past a profit zone after breaking out at 146.59 but fell back below the 50 day moving average in heavy volume on Tuesday.
C3.ai (AI) switched gears and moved higher in afternoon trading. The company reported a smaller-than-expected loss for its fiscal second quarter.
C3.ai soared after the company reported its fiscal second-quarter results late Monday. Shares initially fell more than 8% at Tuesday’s opening.
Sales beat estimates and grew 29% to $94.3 million while the company reported a loss of 6 cents per share. Analysts expected $91 million in sales with a loss of 16 cents per share vs. a year-ago loss of 13 cents. The enterprise software company recently extended its partnership with Microsoft for its cloud computing services.
Chief Executive Thomas Siebel said that with its “Microsoft-scale go-to-market engine” it would be easier for businesses to adopt and deploy C3 AI applications.
Futures: Two Titans Jump But Growth Skids Again
Upgrade Boosts Tesla Stock In Stock Market today
Elsewhere, Tesla (TSLA) got an analyst upgrade that helped extend its rally.
Morgan Stanley analyst Adam Jonas increased the price target to 400 from 310 while maintaining a buy rating. But Cantor Fitzgerald analysts maintained a hold rating and a 365 price target.
Also, Dow Jones stock American Express (AXP) neared a buy point of 307.82 in a three-weeks-tight pattern. The credit card giant is a holding of Warren Buffett’s Berkshire Hathaway (BRKB).
12.21 p.m. ET
Stock Market Today: Google Breaks Out
Shares of Alphabet broke out and cleared a buy point of 182.49 from a cup-with-handle base. Shares pulled back midday but remained above the buy point.
On Monday, the company announced its latest Quantum AI chip, Willow, which showed an ability to reduce quantum errors while also performing high-speed computation. The company boasted that errors were cut in half on Willow even while increasing qubits — a “historic” achievement. Qubits are the basic units for measuring quantum data.
Google stock also is on the IBD Leaderboard and IBD SwingTrader list.
10:46 a.m. ET
Stocks On The Move
Dow Jones component Apple (AAPL) rose modestly. Apple is in a buy zone from a buy point of 237.49.
Streamline Your Hunt For The Best Stocks
MongoDB (MDB) reversed sharply lower after its quarterly report. Shares had rallied in extended trading but gave up much of their pre-earnings November gains on the stock market today. The stock is almost back to its 297.68 buy point after gaining 25% from it.
Sales grew 22% to $529.4 million while earnings per share of $1.16 rose 21% from the prior year. Its midpoint outlook for the current quarter indicates a decline in earnings to 64 cents per share from 84 cents in the year-ago period.
Are These Magnificent Seven Stocks A Buy Now?
Alphabet | Amazon | Apple | Meta | Microsoft | Nvidia | Tesla
In retail Ollie’s Bargain Outlet (OLLI) broke out past a buy point of 104.98 after its third quarter report. Sales rose 8% to $517 million. Analysts had a target of $518.8 million. Earnings of 58 cents per share beat views of 57 cents.
AutoZone (AZO) edged higher in a buy zone from a buy point of 3,234.02 after it announced November-quarter results. Sales grew to $4.3 billion, in line with views. Per-share earnings of $32.52 declined from the prior year’s $32.55 per share. Estimates had called for $33.56 per share.
Meme stock GameStop (GME) fell 0.6% ahead of its third quarter results after the market close.
Please follow VRamakrishnan on X/Twitter for more news on the stock market today.
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