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Dow, S&P 500, Nasdaq Bleed More Red; Amazon, Workday Hold up | Stock News & Stock Market Analysis

Sellers were in the stock market again Tuesday as the Dow, S&P 500 and Nasdaq held stiff losses in afternoon trading.

X The Dow took the biggest hit, falling 1.4%, hurt by weakness in Pfizer (PFE) and UnitedHealth Group (UNH). Pfizer’s earnings disappointed, fueling a 4% loss for the stock. UnitedHealth Group gave back nearly 4% on news from Amazon.com (AMZN), Berkshire Hathway (BRKA) and JPMorgan (JPM) that all three are collaborating on a way to offer health care to U.S. employees with more transparency and at a lower cost.

Providers of pharmacy benefit management services fell hard on the news. Express Scripts (ESRX) cratered 6% but was well off session lows after touching the 50-day moving average. CVS Health (CVS) slumped 4.5%.

Amazon was mostly unchanged around 1,418 ahead of its earnings report Thursday after the close. The Leaderboard name has been a standout performer after a breakout over a 1,213.51 buy point.

The Nasdaq composite and S&P 500 were down 1.1% each. Volume on the NYSE and Nasdaq was tracking higher than Monday’s levels in the stock market today. The Nasdaq and S&P 500 suffered a distribution day Monday with losses in higher volume. Distribution days are a sign of institutional selling.

Workday (WDAY) was a bright spot in the Nasdaq 100, rising nearly 3% to 119.74. The weekly chart shows a conventional entry at 116.99, but the daily shows an earlier cup-with-handle entry of 114.98.

Meanwhile, the two-day Fed meeting got underway today and decision on interest rates is due Wednesday at 2 p.m. ET. The market is not expecting a rate hike this time around, but the chances for one at the March meeting are pretty good. According to CME Group FedWatch, the market sees a 70% chance for a quarter-point hike to a range of 1.50% to 1.75%.

The 10-year Treasury yield added 2 basis points to 2.71% ahead of Friday’s jobs report. Economists expect nonfarm payrolls to rise 175,000 with the unemployment holding steady at 4.1%.

Inside the IBD 50, Align Technology (ALGN), the company behind Invisalign braces, recovered off lows after a quick test of the 50-day moving average. Shares of Align were still down 3.5% ahead of its earnings report after the close.

IBD 50 name Grubhub (GRUB) gapped down, falling 4% to 72.15, after Barclays downgraded shares to equal weight from overweight with a 56 price target. The stock is about 4% below the 74.90 of a flat base it cleared last week. Earnings are due Feb. 8 before the open.

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