Dow Jones dives; Tesla Stock Erases Years of Earnings; These Cathie Wood signings take the plunge

The Dow Jones Industrial Average fell as recession fears rose on new data. Tesla (TSLA) is at a multi-year low after a shocking crash. A number of Cathie Wood’s new signings were being abused. Microsoft (MSFT) e Apple (AAPL) was punched.

A trio of stocks near buy points were showing strength amid the carnage. Cardinal health (CAH), Jazz Pharmacy (JAZZ) and AbbVie (ABBV) they were all tough. Given the ongoing action, now is a good time to beef up your checklist.




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Meanwhile, the yield on the benchmark 10-year Treasury note ended the day unchanged at 3.69%. West Texas Intermediate crude rose 0.2% to $78.20 a barrel.

Stock market hit by double blow of data

Stocks took a double hit as initial jobless claims climbed to 216,000, below estimates for a hike to 225,000. The Federal Reserve is trying to cool the job market as it tries to fight inflation.

Gross domestic product was also stronger than expected in the third quarter, according to the Commerce Department. Its third estimate showed 3.2% growth versus 2.9% in the second estimate. This also suggests that the Fed’s attempts to slow the economy have yet to bear revolutionary fruit.

Oanda senior market analyst Edward Moya said in a note to clients that there is a heavy seasonal impact on jobs data and jobless claims are expected to pick up after the holidays. But if jobs hold steady, there could be more problems due to Federal Reserve action.

“Wall Street is still pricing in another rate hike at the February FOMC meeting, but if the data doesn’t break out, a March hike should start to be priced in,” he said.

Orsi Maul Nasdaq, IBD 50

The Nasdaq closed at lows but still fell 2.2%. Nvidia (NVDA) was among the worst performers, dropping 7%.

The S&P 500 suffered despite a late rally, shedding 1.5%. Carnival (CCL) lagged here, slipping 7.1%.

The S&P 500 sectors were all negative. Consumer discretionary and technology suffered the worst losses. Health was the stronger group, but still lost ground.

Small-caps had a tough session, with the Russell 2000 losing 1.4%.

Growth stocks did not escape the wrath of angry bears, with the Innovator IBD 50 ETF (FFTY) ending the day down 1.6%.

Dow Jones Today: Microsoft, Apple Stock Dive

The Dow Jones Industrial Average fared better than the other major indices. However, it still fell 349 points, or 1.1%.

Microsoft stock was one of the worst performers on the blue chip index, down 2.6%. It has sent a sell signal by undercutting the 50-day moving average.

Apple shares also suffered, its 2.4% drop only slightly better than MSFT’s. It lost ground on its 50-day line, MarketSmith analysis shows.

Aerospace giant Boeing was the worst performer on today’s Dow Jones, which fell 4%.

Verified (VZ) fared better with a 1.4% gain. Nike (NKE) also impressed with a 0.8% gain.


Futures: inflation data out of date; Elon Musk Pledge Lifts Tesla Late


Downswing in Tesla shares

TSLA had a really shocking day, losing 8.9%. The stock has lost nearly 69% of its value so far this year.

The latest painful decline came after the company offered $7,500 discounts on Model 3 and Model Y vehicles delivered in the United States this month.

The EV automaker is also offering 10,000 miles of free supercharging as part of the deal. It comes amid growing fears that Tesla is facing weakening demand.

As if that weren’t enough, Wall Street fears CEO Elon Musk and his constant distractions with Twitter could hurt both the EV giant’s sales and its brand.

Tesla has now erased years of gains, standing at a level last seen in September 2020. Those who entered when the stock hit its all-time split-adjusted high of 407.36 in November 2021 are taking extremely painful losses .

New Cathie Wood buys Plummet

Popular stock picker Cathie Wood yesterday made four stock purchases for her ARK Innovation ETF (ARKK), including TSLA. Everything collapsed badly.

Pandemic darling Zoom video communications (ZM) finished low for the session but was still down 5.7%. It is trading below all of its moving averages.

Payment Warehouse To block (SQ) made a solid late rally but still fell 3.2%. It’s among the worst 23% of stocks over the past 12 months.

Streaming video playback Roku (ROKU) fared better as it reacted to close down 1.4%.

The ARK Innovation ETF is down 3.4% and is now down more than 67% since the start of 2022. It is also trading 12.1% below its 50-day moving average.

Outside the Dow Jones: 3 stocks close to rumors flex their muscles

With the stock market getting hammered due to the ongoing bearish action, investors should look for stocks that show relative strength.

Cardinal Health saw its relative strength line hit new highs as it watched a flat basic income of 81.67.

It’s in the top 3% of stocks in terms of price performance over the past 12 months, though its EPS rating of 68 out of 99 isn’t ideal.

Jazz Pharmaceuticals also saw its RS line spike as it approaches a double bottom base entry of 163.41. This is a first stage model.

The company, which makes treatments for narcolepsy and other sleep disorders, has solid all-around performance. This is reflected in an IBD composite score of 90.

AbbVie outperformed making a slight gain, driving its RS line to new highs. You are looking at a cup and handle item of 167.85.

Please follow Michael Larkin on Twitter at @IBD_MLarkin for more analysis of growth stocks.

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