The Dow Jones Industrial Average declined 250 points Tuesday, as Dow Jones leader Apple sold off sharply. Tesla stock is falling through a key support level in morning trade.
Among the Dow Jones leaders, Apple (AAPL) sold off 3% Tuesday, while Microsoft (MSFT) dropped 1% in today’s stock market. Goldman Sachs (GS) is trading just off a new buy point.
Tesla (TSLA) skidded nearly 3% Tuesday morning, threatening to add to Monday’s 3.5% loss.
Among the top stocks to buy and watch, MarineMax (HZO), Nvidia (NVDA) and PayPal (PYPL) are in or near buy zones.
Microsoft and Nvidia are IBD Leaderboard stocks. MarineMax was Monday’s IBD Stock Of The Day. Apple and Goldman Sachs were featured in this week’s Stocks Near A Buy Zone column.
Dow Jones Today
The Dow Jones Industrial Average moved down 0.7% Tuesday morning, while the S&P 500 lost 1.1%. The tech-heavy Nasdaq composite traded down 2.2% in morning trade.
U.S. Stock Market Today Overview
Last Update: 10:30 AM ET 5/4/2021
Among exchange traded funds, the Innovator IBD 50 (FFTY) fell 3.5% Tuesday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) moved down 1.9%. Meanwhile, the SPDR S&P 500 ETF (SPY) was down 1%.
Stock Market Rally: Dow Jones Falls From Highs
While the stock market status remains in a “confirmed uptrend,” Tuesday’s sharp losses dragged the Dow Jones Industrial Average and S&P 500 from record highs. Meanwhile, Tuesday’s action moved the tech-heavy Nasdaq moved further away from its own all-time record, and below support at its 21-day exponential moving average.
Monday’s Big Picture column commented, “The price action in the major stock indexes might look fine, but the action beneath the surface has resulted in a challenging environment for growth investors. If you haven’t been in sync with the market, and your portfolio is having a hard time making headway, it doesn’t make sense to be 100% invested. Cut your laggards loose and hold on to your best performers. It’s OK to hold some cash at this point.”
For more stock market commentary, check out IBD’s The Big Picture.
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Dow Jones Stocks: Goldman Sachs
Dow Jones investment bank Goldman Sachs is working on a new flat base with a 356.95 buy point, according to IBD MarketSmith chart analysis. Shares declined 1% Tuesday and are about 3% away from the entry.
The latest base is a second-stage formation, indicating the stock could still be in the earlier part of a long-term price advance.
The investment banking giant is on a tear in 2021, already up more than 30% year to date.
Stocks To Buy And Watch: MarineMax, Nvidia, PayPal
Monday’s IBD Stock Of The Day, MarineMax, is nearing a 64.09 buy point in a cup base, according to IBD MarketSmith chart analysis. Shares declined almost 1% Tuesday and are about 5% away from the entry.
IBD Leaderboard Nvidia ended Monday about 3% below its 615 buy point in a new cup base. The 5% buy zone goes up to 645.75. Shares lost nearly 3% Tuesday
Per Leaderboard commentary, “Nvidia broke out of a cup base after earlier patterns failed. The breakout has stalled, but the stock is not in immediate danger.”
Payments leader PayPal continues to build a cup with handle, offering a buy point at 277.96. Shares moved down 3% Tuesday, on pace to extend a losing streak to four sessions. PYPL stock is giving up support at its 50-day support level.
According to IBD Stock Checkup, PYPL stock shows a solid 85 out of a perfect 99 IBD Composite Rating. The IBD Composite Rating helps investors easily measure the quality of a stock’s fundamental and technical metrics.
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Tesla stock declined almost 3% Tuesday morning, threatening to add to Monday’s 3.5% skid. Shares are falling below their key 50-day moving average line. If Tesla is unable to recover back above this key level, it could signal further weakness.
The EV giant is forming a new cup with handle, offering a 780.89 buy point. But it is a late-stage base.
On Jan. 25, Tesla stock hit a record high at 900.40, after climbing as much as 93% from a 466 buy point in a cup with handle.
Dow Jones Leaders: Apple, Microsoft
Among the top Dow Jones stocks, Apple sold off 3% Tuesday, falling further from a cup with handle’s 135.63 buy point. On April 29, Apple stock tried to break out following strong earnings results, but was turned away. Shares are now about 3% below the entry.
Software giant Microsoft fell 1% Tuesday, on pace to drop for a fifth straight session. Shares are back in the 5% buy range past a flat base’s 246.23 buy point that tops out at 258.54, according to IBD MarketSmith chart analysis.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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