The Dow Jones Industrial Average fell late while the Nasdaq fell. Twitter (TWTR) reversed, with analyst saying now is the time to sell due to Elon Musk takeover ‘circus’. You’re here (TSLA) also skidded lower while Nike (NKE) was one of the best top notch artists.
A number of stocks tested entries despite the uncertain action. star bulk carriers (SBLK), Owl Capital (ORCC) and International service company (SCI) all exceeded buy points.
Volume was mixed, up on the New York Stock Exchange but down on the Nasdaq, according to early data.
Meanwhile, the yield on the benchmark 10-year Treasury note rose about 14 basis points to 2.83%. Oil surged, with West Texas Intermediate crude up about 2% to over $106 a barrel.
Investors were digesting the economic data. Retail sales rose 0.5% in March from the previous month, largely in line with economists’ expectations. Excluding autos, sales rose 1.1%, also in line with views. The number of jobless claims rose last week to 175,000 from 167,000 the previous week. However, that figure was lower than the 185,000 expected by economists, according to data from Econoday.
Nasdaq plunges as yields rise
The Nasdaq plunged as yields rose again. The high-tech index closed the day down 2.1%. China e-commerce stock Pinduo-duo (PDD) is doing the least well since it fell by almost 9%.
The S&P 500 also lost ground, losing 1.2%. State Street (STT) also lagged here as it fell 8.5%.
Overview of the US stock market today
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Last Updated: 4:08 PM ET on 04/14/2022
S&P sectors were mostly negative. Energy and Utilities were the only sectors in the green while Technology and Communication Services were the worst sectors.
Small caps also suffered a bearish attack, with the Russell 2000 falling 1%.
Growth stocks offered no crumb of comfort. The Innovator IBD 50 ETF (FFTY), a benchmark for growth stocks, fell 1.1%.
Dow Jones struggles as Nike Stock leads
The Dow Jones Industrial Average closed the day down more than 100 points amid late pressure. It slipped 0.3% lower.
Sportswear Nike stock was the best performer with a gain of 4.7%. NKE stock will now look to resume its 50-day moving average.
It was right in front caterpillar (CAT), up 4.4%.
Apple (AAPL) and Selling power (CRM) were the furthest behind. AAPL stock closed down 3% while Salesforce fell 3.2%.
Twitter Stock Mixed Amid Elon Musk’s ‘Circus’
Twitter stock was soaring in a twisty session. A late selling wave saw it close down 1.7%.
The title first jumped on the news that Elon Musk proposed to privatize the company, before retreating.
Musk is offering 54.20 per share in cash to buy the rest he doesn’t own, giving him 100% of the company, which he says is his ‘best and last offer’ in letter to Twitter chairman , Bret Taylor.
Stifel analyst Mark Kelley downgraded Twitter shares from suspended to short on Thursday, warning that a “full-fledged Elon circus” could lead to a sharp setback if he chooses to sell his 9-year stake. 2%.
He also said the takeover bid had set a “short-term ceiling for stocks” and the stock price was now detached from fundamentals.
Meanwhile, Musk told a Ted2022 talk on Thursday that he has what it takes to buy Twitter. He also said he “doesn’t care about the economy at all” and is focused on a reliable and inclusive public platform.
Meanwhile, the Wall Street Journal reported that Twitter executives are considering implementing a so-called poison pill plan to prevent Musk from significantly increasing his stake.
Tesla Stock Plunges, Loses Key Level
It looks like Tesla stock could be caught in the maelstrom as it skidded lower on Thursday.
Investors might worry that Musk is losing focus on the electric vehicle giant as it tries to take control of Twitter.
Tesla stock ended the session down 3.7% and saw its relative strength line waver. It slipped just below the 1000 level and its 21-day exponential moving average.
A wild card for Tesla owners is the fact that earnings are expected to be released on April 20.
One approach highlighted by Investor’s Business Daily is to use options as a strategy to reduce risk around profits. It’s a way to capitalize on a stock’s upside potential around earnings, while reducing downside risk.
A game plan and 5 actions for a split market rally; Tesla Earnings Due
Shipping Play among stocks Test purchase points
Star Bulk Carriers is clearing its 10-week moving average higher. This is used to offer an entry of 28.75, with the buy zone peaking at 31.62.
The Greek shipping giant impressed by showing strength in a broad drop in shipping names. It is now looking to move higher again.
Its bullish behavior has earned SBLK a spot on the prestigious IBD Leaderboard list of top stocks.
Meanwhile, Owl Rock Capital is facing legal action after the stock broke off a flat-based entry of 15.24.
The stock is showing an increasing line of relative strength, which is an encouraging sign, especially during the current stock market volatility.
Owl Rock offers direct loans to middle market businesses. After several weak quarters, EPS rose 21% in the fourth quarter.
Hot industries come and go, but funerals will always be in demand. As such, Service Corporation International may be an attractive option for investors seeking stability in an uncertain market.
The stock is just below its entry after clearing earlier from a base cup buy point of 71.81. Overall performance is solid, with its IBD composite rating of 94 out of 99.
While profits are expected to fall 34% in 2022, they should return in 2023, with growth of 10% according to analysts.
Please follow Michael Larkin on Twitter at @IBD_MLarkin to learn more about growth stocks and analysis.
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