The Dow Jones Industrial sank as the stock market plunged. Tesla (TSLA) fell late after CEO Elon Musk made a declaration regarding his Twitter (TWTR) takeover. amazon (AMZN) cratered on earnings despite bullish Wall Street calls while Manzana (AAPL) also fell hard.
Volume was down on both the Nasdaq and New York Stock Exchange according to preliminary data.
Meanwhile, the yield on the benchmark 10-year Treasury note rose 5 basis points to 2.92%. Oil slipped, with West Texas Intermediate crude down almost 1% to more than $104 per barrel.
Nasdaq Crushed As Tech Stocks Struggle
The Nasdaq was getting hammered, falling 4.2%. verisign (NRSV) was one of the worst performers outside of Amazon. It dropped 14.3%.
The S&P 500 was also bleeding heavily, dropping 3.6%. aon (AON) was one of the laggards here, dropping 9.3%.
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S&P sectors were all red. Consumer discretionary, real estate and technology fell hardest while materials and energy fell the least.
Small caps were also mauled by the rampaging bears, with the Russell 2000 dipping 2.8%.
Growth stocks did not escape the carnage. The Innovator IBD 50 ETF (FFTY), to bellwether for growth stocks, fell 2.8%.
Dow Jones Dives As Apple Stock Suffers Hangover
The Dow Jones Industrial Average was also getting spanked. It dropped more than 900 points, or 2.8%.
Apple stock was among the laggards as it dipped following its latest report. The stock closed at session lows as it fell 3.7%, losing ground on its 50-day moving average in the process.
Analysts expected Apple earnings to come in at $1.42 per share on sales of $94 billion. After the close the firm posted EPS of $1.52 on sales of $97.28 billion.
However, it was punished after managed said the resurgence of Covid-19 in China could hurt sales by as much as $8 billion in the current quarter.
Amazon Stock Craters Despite Bullish Wall Street Calls
Amazon stock cratered following its latest earnings report. It closed near session lows as it gave up 14.1%. It suffered its worst session since 2006.
The stock is trading below both its 50-day and 200-day moving averages.
AMZN was getting mauled after the firm posted its first quarterly loss in seven years late Thursday.
The firm reported a steep first-quarter loss. Its revenue forecast fell short of expectations as the company cited Russia’s invasion of Ukraine as a contributing factor.
Even the firm’s mighty Amazon Web Services business had issues. While it reported revenue of $18.44 billion, above estimates of $18.27 billion. Advertising revenue of $7.88 billion was below estimates of $8.17 billion.
Amazon reported an adjusted loss of $7.56 a share on revenue of $116.4 billion. Analysts were expecting earnings of $8.35 a share on revenue of $116.5 billion.
JPMorgan cut its price target on the stock to 4,000 from 4,500 but retained its overweight rating.
Analyst Doug Anmuth said the stock “remains our top pick and we would buy the weakness.”
Goldman Sachs reiterated a buy rating but cut its price target to 3,700 from 4,000. Analyst Eric Sheridan said it is a “top pick on a 12-month view with an increasingly positive skew in its risk/reward after further de-rating post this earnings report.”
Tesla Stock Falls Late Amid Elon Musk Declaration
Tesla stock nearly bucked the broader market but was dragged lower at the end of Friday’s session. It finished the day down 0.8%.
The Leaderboard stock was boosted after CEO Elon Musk revealed he is done with selling off stock for now.
“No further TSLA sales planned after today,” Musk said in a Tweet.
Musk has been liquidating shares as he looks to take over Twitter in a mammoth $44 billion deal.
Documents submitted to the SEC Friday disclosed he had sold an 5.2 million shares. This comes after he sold 3.7 million shares Tuesday and 735,000 shares on Wednesday. He raked in about $8.5 billion and sold for an average price of 883.09 per share.
In total, Musk’s total stake in the company has slipped from about 17% to 16%.
These Stocks Make Bullish Moves
A couple of stocks made eye-catching moves that were marred due to the negative action.
Merck stock briefly managed to clear a cup-with-handle base. The ideal entry point is 89.58 according to MarketSmith analysis.
It was beaten back amid the fierce selling but is still worth keeping on one’s radar. The fact its relative strength line has hit a new high underlines its power.
The stock has been rocking since it beat earnings views, partially thanks to $3.2 billion in sales of its Pfizer (PFE)-rivaling Covid pill.
Chemicals stock Olin is also back beneath its entry after breaking out of a cup-with-handle base. The buy point here is 61.01. The RS line also hit new heights.
The firm manufactures ammunition, chlorine, and sodium hydroxide. Its ammunition business looks set to be boosted by the Russia-Ukraine war.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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