Stocks were back near session lows Tuesday afternoon as the Dow Jones Industrial Average widened its loss to more than 600 points.
The Dow Jones industrials sank 1.8%, the S&P 500 shed 1.4% and the Nasdaq lost 0.8% in the stock market today. Small caps tracked by the Russell 2000 gave up 1%. Volume was higher on both major exchanges vs. the same time Monday.
Tech stocks, hit hard last week, remain under pressure. On Monday, the Nasdaq tumbled 2.6% to close below its 50-day moving average for the first time since March.
Last year, tech stocks boosted the Nasdaq to a 43.6% gain — its fifth-best year ever. The S&P 500 rose 16.3% in 2020 and the Dow added 7.2%. After a strong start this year and a short correction, the market has rebounded near record highs. Read The Big Picture for more detailed daily market analysis.
The U.S. economy is trying to recover from the Covid-19 pandemic, which triggered nationwide lockdowns over a year ago. But many states are relaxing restrictions, and cases are plateauing or declining in some states as vaccinations roll out.
U.S. Stock Market Today Overview
Last Update: 12:58 PM ET 5/11/2021
Cumulative Covid-19 cases worldwide have topped 160 million, with more than 3 million deaths, according to Worldometer. In the U.S., cases are now past 33.5 million with over 596,000 deaths, although the number of new cases and deaths in the U.S. has slowed dramatically in many states.
As countries rush to vaccinate their populace, BioNTech (BNTX) plunged nearly 9% before sharply paring its loss to 0.6%. Shares remain far extended from a 131.10 buy point of a four-month consolidation, according to MarketSmith chart analysis.
BioNTech stock fell even though the Food and Drug Administration expanded approval for the biotech’s Covid-19 vaccine to the 12- to 15-year-old set. Equity research firm Bryan Garnier downgraded the German biotech to neutral from buy, but boosted its price target to 206 from 135.
Pfizer (PFE), BioNTech’s partner on the Covid-19 vaccine, slid 1.2%.
Dow Jones Movers
Home Depot (HD) shed 3.6% in heavy trade, on pace to halt a three-session advance. Shares are about 5% off their Monday record high. Home Depot stock remains in its buy range after clearing a 328.93 entry of a three-weeks-tight pattern.
Analysts expect earnings to rise 44% to $2.99 a share on a 21% revenue increase to $34.2 billion when the home improvement giant reports Q1 results May 18.
Apple (AAPL) gave up 1.5% in heavy volume to fall below its 50-day line for the first time since early April. It moved off session lows. On Monday, shares sold off 2.6%. Apple stock is now about 8% below its 135.63 buy point of a cup with handle, which it attempted to clear on April 29.
Nike (NKE) gave up a small early gain to edge 0.2% lower. It’s still holding above its 50-day moving average.
Nike stock regained its 50-day line last week as it continues a four-month consolidation. Jefferies upgraded the athletic shoe and apparel giant to buy from hold and raised its price target to 192 from 140.
Outside The Dow
Palantir Technologies (PLTR), which reported Q1 results ahead of the open, reversed from a sharp drop to a 7% gain in fast turnover. The enterprise software maker earned an adjusted 4 cents a share on sales of $341.2 million. That matched Wall Street’s earnings target, while revenue beat.
Virgin Galactic (SPCE), which reported earnings after the close Monday, was down nearly 4% after paring an even steeper loss. Shares plunged as much as 20% in early trade. The spaceflight company lost 55 cents a share vs. views for a 31-cent loss. Virgin Galactic said its next test flight is under review, after earlier saying tests were due this month.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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