The Dow Jones Industrial Average and other major indexes pared losses but remained on the downside in late afternoon trade on Friday. Adobe(ADBE) income problems. The Nasdaq tried to recover but appears to be headed for territory not seen since last fall. And Nvidia rode the Nasdaq wave and rose ahead of a major artificial intelligence event, while Tesla ( TSLA ) halted its decline in the stock market today.
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The Dow trimmed its losses to 0.4%, while the S&P 500 was down 0.6%. Among the S&P sectors, energy and materials gained, while technology and communications services lagged behind.
The Nasdaq also recovered from heavy early losses to trade 0.8 percent lower. The tech-heavy index was on track for its first back-to-back weekly losses since late October.
After Thursday’s sharp decline, small caps fared slightly better. The Russell 2000 gained 0.5% in recent trade. Meanwhile, options were due to expire on Friday, which would likely boost trading volume.
In economic news, the Empire State Manufacturing Index, a measure of manufacturing activity in March, shrank to -20.9. Economists expect a fall to -8. Additionally, the University of Michigan’s consumer sentiment survey came in at 76.5 for March. According to Econoday, the survey was expected to come in at 77.3.
Also on the economic front, investors are awaiting remarks from Federal Reserve Chairman Jerome Powell. Powell is due to speak on Wednesday, amid sentiment that interest rates are expected to remain unchanged.
Volume on the New York Stock Exchange was lower than the same time on Thursday but higher on the Nasdaq. Breadth improved as advancers outnumbered decliners on both exchanges.
The Innovator IBD 50 ( FFTY ) exchange-traded fund bucked the slump and rose 0.5% in the stock market today. Further, the yield on the benchmark 10-year Treasury note rose to 4.31 percent.
Dow Jones Stocks
Nike ( NKE ) was down 0.4% as it closed earnings next week. According to IBD MarketSurge, shares are also in a downtrend as they face resistance at the 50-day moving average. The footwear and sportswear maker became the latest short position on IBD SwingTrader.
Tech stocks in the Dow sold off in the meantime. Boeing (B.A.), JP Morgan Chase (JPM) and Caterpillar (CAT) were slightly higher.
Stock market today
Adobe fell 13% after its results, dragging most of the market down with it. Shares fell below the 50-day moving average before earnings, then dipped below the 200-day line on Friday.
Adobe beat Wall Street targets for the first quarter of its fiscal year ended March 1 but presented a disappointing outlook. At least 15 Wall Street analysts cut their price targets on Adobe stock after the company released quarterly results late Thursday.
Gigacloud technology ( GCT ) surged 22% after reporting a strong quarter and encouraging outlook. The IBD 50 stocks have been boosted.
In “Magnificent Seven” stock, Nvidia ( NVDA ) worked to snap a two-day losing streak in the stock market today. The AI ​​chip leader will hold the GTC 2024 conference for artificial intelligence developers next week. Nvidia is a holding on the Investors Business Daily IBD Leaderboard Model Portfolio. Shares rose 0.8 percent.
Tesla tried to stop it from sinking further down. The electric vehicle giant was up 0.4% in late afternoon trade but is in a bearish trend.
On the earnings deck
In computer tech services, Accenture (ACN) has formed a tight three-week pattern as it tests its 50-day moving average ahead of next week’s earnings. In retail, an apparel manufacturer Lululemon (LULU) is in a flat base with an early entry at 474.17, according to IBD MarketSurge. The company reports its fourth-quarter results on Thursday.
Elsewhere, Darden Restaurant ( DRI ) showed a similar pattern with an entry at 176.84 ahead of third quarter results next week. Home Builder Stock KB Home (KBH) is in buy zone from flat base buy point 64. First quarter earnings are due on Wednesday.
Enterprise software stock Smart Sheet ( SMAR ) fell nearly 7% after the company suggested a further reduction in its sales outlook for the current quarter. Sales have declined over the past seven quarters.
Outside the Dow Jones Indices, mixed results and a weak outlook were sent. Jabeel ( JBL ) is falling more than 17 percent. Shares have fallen below the 50-day moving average. Special retail stock Reverse beauty (ULTA) also fell on a softer outlook.
Finally, FDA approval for his drug to treat a type of fatty liver disease helped. Madrigal Pharmaceuticals (MDGL). Shares of the drug rose 11 percent in the stock market today.
Act on V Ramakrishnan On X/Twitter for more news on the stock market today.
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