Fri. Jul 26th, 2024

The stock market was seeking direction in the first hour of trading Tuesday. It’s an important week for investors, with the Fed’s rate decision Wednesday, Apple‘s (AAPL) earnings report Thursday, and the October jobs number Friday.




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As the Dow Jones Industrial Average whipsawed and inched 0.1% lower, the Nasdaq edged down 0.2% in the stock market today. The S&P 500 was unchanged, and the small-cap Russell 2000 crept up 0.2%.

The Nasdaq bumped up against its 200-day moving average and found resistance at that level. The S&P 500 and Dow remained below their 200-day lines, but trimmed earlier losses.

Volume rose on both the New York Stock Exchange and the Nasdaq from Monday’s levels at the same time of day.

The Invesco QQQ Trust (QQQ) exchange traded fund, which tracks the Nasdaq 100, fell 0.2%. The Innovator IBD 50 ETF (FFTY) was nearly unchanged.

The yield on the benchmark 10-year Treasury note shed 2 basis points to 4.86%.

Wednesday brings the Fed meeting decision on interest rates. It appears that there is no chance of a rate hike at this week’s meeting and a nearly 25% chance in December, according to CME FedWatch Tool.

Magnificent Seven name Apple will report its quarterly earnings Thursday after the close. This is a closely watched report as their business spills over into other businesses. Apple stock pulled back nearly 1% Tuesday morning. Shares are finding resistance at the 200-day moving average. UBS cut its sales forecast for iPhones and Macs, citing soft demand in the U.S. and China.

October nonfarm payrolls are expected to grow 183,000, and that would be pale compared with the 336,000 increase in September, according to Econoday. Private payrolls are projected to rise 143,000 — also lower than September’s 263,000 increase.

Stock Movers: Arista Leads The S&P 500

Arista Networks (ANET) gapped up nearly 12% Tuesday morning after the company reported higher-than-expected third-quarter earnings and sales Monday after the close. The cloud network stock is in a flat base with a 198.70 buy point. The stock reclaimed its 50-day moving average on the move. Its relative strength line hit a 52-week high, according to MarketSmith pattern recognition.

ANET stock was the biggest gainer on the S&P 500 Tuesday.

Pinterest (PINS) gapped up more than 18% in huge volume and crossed the 28.90 buy point of a double-bottom-base. Shares are in the 5% buy zone reaching to 30.35, but remember breakouts often fail in a weak market such as this one.

The company reported better-than-expected adjusted Q3 earnings and sales and upbeat Q4 revenue guidance. PINS stock retook its 50-day line.

Nvidia (NVDA) sank more than 3% in heavy volume after two positive days. It is trying to hold support around the 400 level. Monolithic Power Systems (MPWR) jumped more than 4% in heavy volume. The chipmaker released its third-quarter results and issued fourth quarter guidance. It also announced a $640 million stock repurchase program.

Dow Jones stock Caterpillar (CAT) gapped down about 6% after the heavy equipment maker reported Q3 profit and revenue above estimates. But it cited a lower order backlog and only “slightly” higher fourth quarter revenue.

Shares fell further below the 200-day line. CAT stock is on pace for its largest decrease since April 22, 2022, when it fell 7%, according to Dow Jones Market Data. CAT was the worst performer in the Dow Tuesday morning.

Other Stock Market Movers: Chip Stock Tanks

Lattice Semiconductor (LSCC) plunged after the chip company slightly beat top and bottom line forecasts. Lattice gave a disappointing current-quarter revenue outlook. LSCC stock fell further below its 200-day line, to the lowest point in nearly a year.

Sarepta Therapeutics (SRPT) plummeted over 40% after the company reported mixed results on its gene therapy drug, Elevidys, used for a muscle-wasting disease in boys. Shares traded in enormous volume on Tuesday and were halted overnight.

ELF Beauty (ELF) tumbled in heavy trading ahead of its earnings report on Wednesday. The cosmetics and skin care stock sank below its 200-day line in stock market action.

Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.

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