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Dow Jones Reverses Lower As Nasdaq Leads Sell-Off; These Stocks Fall On Earnings

The Dow Jones Industrial Average reversed lower in today’s stock market after paring earlier gains. Meanwhile, the S&P 500 and the Nasdaq both sold off and traded near their lows of the day over the last hour. Continuing a theme seen in recent days, the Nasdaq led on the downside as tech shares sold off considerably.




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Stock Market Today

The small-cap Russell 2000 index fell 0.4%. Meanwhile, the Nasdaq composite declined 2.7%. The S&P 500 held a loss of 1.3% while the Dow Jones posted a decline of 0.4%. Volume was tracking higher on both the Nasdaq and on the NYSE compared with the close of the day on Tuesday, according to preliminary data.

A disappointing jobs report weighed on the major indexes on Wednesday. According to ADP, private payrolls rose 117,000 in February, which was well below Econoday’s consensus estimate for 165,000. The Labor Department will release official February jobs data on Friday.

The market appears to be continuing a major sector rotation away from various technology-related fields such as enterprise software, internet and computer hardware. Additionally, chip stocks continued trading lower. The iShares Philadelphia Semiconductor Index ETF (SOXX) declined 3.1%, almost on par with the Nasdaq’s overall decline.

However, industry groups such as banks, airlines, and oil and gas stocks outperformed. Oil and gas firms rallied ahead of a key meeting Thursday by OPEC and Russia to discuss future production plans. The Energy Select Sector SPDR Fund (XLE) rose 1.4% after paring earlier gains.

Elsewhere, the Innovator IBD 50 ETF (FFTY) fell 3.4%. Shares of the ETF are once again testing support at the 50-day line. Stocks leading the downside in the growth-focused ETF on Wednesday were online education stock Chegg (CHGG) and Etsy (ETSY) with losses of 8% and 12%, respectively.

Dow Jones Today

The Dow Jones pared earlier gains and turned negative. But the major index was very mixed with half the stocks falling and the other half rising. Major tech stocks led the downside, including Intel (INTC), Apple (AAPL), Microsoft (MSFT) and Salesforce.com (CRM).

Shares of tech giant Apple broke below support at its 50-day line in recent days for the first time since October. The stock is currently attempting to regain this key area of support, according to MarketSmith chart analysis.

Meanwhile, shares of chipmaker Intel lost over 2%. On the positive side, the stock is still near a 65.21 buy point in a large double-bottom base. The stock remains 8% away from the key buy zone. The chart could also be interpreted as a cup-with-handle base with a lower entry at 63.64. Shares recently regained support at both their 50-day and 200-day lines.

Shares of Salesforce continue to fall below their 50-day and 200-day lines after breaking below these key areas of support last week. The stock is forming a consolidation base with 271.02 buy point. Shares remain rather far from the buy point, currently 24% away.

Meanwhile, stocks like American Express (AXP), Boeing (BA) and JPMorgan Chase (JPM) led on the upside with gains of 1.9% or more.

Stocks With Earnings

Shares of Veeva Systems (VEEV) lost more than 7% in heavy volume on Wednesday. The medical software maker sold off despite reporting better-than-expected Q4 earnings late Tuesday and giving Street-topping guidance for the full year. Shares recently triggered the 7%-8% loss-cutting sell signal after failing to break out from a 314.09 buy point in a cup without handle. The stock is currently testing support at the 200-day line.

Elsewhere, FuboTV (FUBO) sold off hard, falling 18%. The sports-first live TV streaming service and recent IPO stock is currently trading just below its 50-day line, according to MarketSmith analysis.

The company slipped as the new IPO stock reported a much larger-than-expected loss. But on the positive side, the company said it added more than expected subscribers in Q4.

Investors should be aware of the increased risk with new investments at this time, as the market is currently in “Uptrend under pressure” mode.

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