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Dow Jones Plunges As Stock Market Correction Deepens

The major stock indexes sold off early Tuesday with broad losses in today’s stock market action. The Dow Jones industrial average declined over 400 points after weak earnings results from Caterpillar (CAT) and 3M (MMM). Top growth stock Centene (CNC) faltered 8% after reporting its quarterly earnings results. (For updates on this story and other market coverage, visit the Stock Market Today.)




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The Dow Jones industrials fell 1.9%, undercutting recent lows and once again giving up its 200-day moving average line. Meanwhile, the tech-heavy Nasdaq composite and S&P 500 tumbled 2.5% and 2.1%, respectively.

Stock Market Earnings: MMM, Caterpillar Crash

Among companies reporting earnings, Dow Jones stocks 3M and Caterpillar crashed 7% and 9%, respectively, after disappointing quarterly earnings results. 3M missed its quarterly targets and lowered its profit outlook. Its stock hit a fresh 52-week low.

Caterpillar warned of higher costs, sending the stock down over 9%. Shares extended their losing streak to five trading sessions and over 30% off their 52-week high.

Fellow blue-chip stock McDonald’s (MCD) bucked the stock market sell-off with a 5% advance after topping analyst estimates. Shares are just 2% off their 52-week high, as they hold above their 50-day line.

After the stock market close, Edwards Lifesciences (EW) will announce its quarterly results, as the stock fights for support at its 50-day line. Shares dropped 3% Tuesday after a German court sided with Boston Scientific (BSX) in a patent case. IBD 50 stock Boston Scientific fell almost 2% and is trying to find support near its 50-day line.

IBD 50 Stocks: Centene Buckles

Among the leading growth stocks, all components were trading in negative territory amid the stock market’s sell-off.

IBD 50 stock Centene declined 9% after its Q3 earnings results early Tuesday. The leading Medicaid managed-care provider projected mixed guidance for the full year. Shares had been weathering the market correction, as indicated by its strong relative strength line. A flat base with a 148.34 buy point is no longer valid.

TransUnion (TRU) cratered over 5% after its earnings results before the stock market open. Shares dropped through their 200-day line. In early October, the stock triggered the 7%-8% loss-cutting sell rule from a flat base’s 76.09 buy point. The stock’s breakout on Sept. 4 was with weak price action, a reason to be more cautious about the stock.

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