The Dow Jones Industrial Average tried to minimize losses as stocks did an about-face and tumbled into the red in midday action Tuesday. Among the stocks weighing on the markets was Nvidia (NVDA), which fell sharply despite new artificial intelligence initiatives. Tesla (TSLA) also sank, but Inari Medical (NARI) rocketed amid merger news on the stock market today.
The Dow was modestly lower after teetering between positive and negative action, as investors digested two closely watched economic reports. The S&P 500 fell 0.7% and remained below the 6,000 level. The benchmark index pulled back to its 50-day moving average after retaking it Monday.
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The Nasdaq composite gave back 1.5% after briefly tapping the 20,000 level Monday. The index sits right at its 21-day exponential moving average. Meanwhile, the Russell 2000 increased its loss to 0.9% and is finding resistance at its 21-day line.
Volume fell on the New York Stock Exchange and rose on the Nasdaq vs. the same time Monday. On both exchanges, falling stocks topped rising issues by roughly 2-to-1.
Bitcoin sank 4.7% to just under the $97,400 level, after retaking the $100,000 mark Monday. The 10-year Treasury yield added six basis points to 4.69%. U.S. crude oil increased 0.8% to near $74.15 a barrel.
Stock indexes fell as the Institute for Supply Management reported that its Services Index rose to 54.1. That topped the 53.2 expected and was higher than November’s 52.1. A reading above 50 indicates that the services economy is generally expanding.
Also in economic news, the Labor Department’s Job Openings and Labor Turnover Survey, or JOLTS, showed 8.098 million job openings in November vs. the 7.65 million projected. It also exceeded October’s 7.744 million reading.
Stock Market Today: Medical Device Stock Soars
Inari Medical catapulted more than 22% in enormous volume following news that Stryker (SYK) agreed to buy the medical device company for around $4.9 billion. Shares are extended from a cup-with-handle base with a 53.67 buy point.
Stryker stock fell 1.5% on the news. Shares dipped below the bottom of a flat base with a 398.20 buy point and are falling further below their 50-day line.
Carvana (CVNA) bolted more than 6% higher after RBC Capital upgraded the online auto retail stock to outperform from sector perform and raised its price target to 280 from 270.
Tesla (TSLA) gave back 4% after BofA Securities downgraded the electric vehicle giant to neutral from buy. The stock fell back below its 21-day line and undercut the 400 level after two days above that threshold.
Israel-based Elbit Systems (ESLT) added 2% and reached an all-time high on the stock market today.
10:40 a.m. ET
Nvidia Stock Falls But Deal News Lifts Uber
Nvidia gave back early gains and tumbled more than 5%. Chief Executive Jensen Huang unveiled new artificial intelligence initiatives for the company at the CES keynote speech Monday night.
Shares broke out past the 146.54 buy point of a double-bottom base Monday as it moved 3.4% higher. Nvidia sits in a buy zone up to 153.87. The IBD 50 and SwingTrader stock is flirting with its all-time high set on Nov. 21. Its relative strength line reached a 52-week high as shown by the blue dot on the MarketSurge weekly chart.
Further, Uber Technologies popped 1.3% after Nvidia announced a partnership with the ride sharing company for AI-powered autonomous driving technology.
Uber stock is on pace for its fourth straight day of gains and nearing its 50-day line. The stock is clawing back after a downward spiral following a failed breakout from an irregular base in October. The stock’s drop below the 50-day line had triggered a sell signal. It holds a weak 27 IBD Relative Strength Rating.
Uniform Supplier Soars On Takeover News
Unifirst (UNF) catapulted 28% higher in huge volume after Cintas (CTAS) offered to buy the rival uniform supplier in a deal valued at $5.1 billion. Unifirst reached a level not seen since March 2021. Cintas added 2.8% on the stock market today.
Roku (ROKU) gained 1.7% after the streaming service provider reported it topped 90 million streaming households in the first week of January. Shares are in the buy zone up to 84.81 of a choppy undefined base with an 80.77 buy point.
Ulta Beauty (ULTA) powered up 3.8% after the beauty retailer announced CEO Dave Kimbell is stepping down. The news prompted several analysts’ price target hikes. The stock has underperformed as reflected in its 62 Relative Strength Rating.
Finally, Snowflake (SNOW) advanced 0.8% after Wells Fargo upgraded the stock to overweight from equal-weight and raised its price target to 200 from 150. Shares are on pace for four straight days of gains. The stock is climbing back after falling from recent highs set in early December.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
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