The Dow Jones Industrial Average fought back amid a broad pullback that saw technology stocks among the worst performers. Microsoft (MSFT) initially gave up minor ground ahead of earnings, as did Google parent Alphabet (GOOGL). Meanwhile, Tesla (TSLA) stock hit reverse gear following its latest report.
Nasdaq Struggles As S&P 500 Rallies
The Nasdaq was the worst performing major index, yet it was dipping around 0.3% and still up for the week. Cadence Design Systems (CDNS) was the biggest laggard, falling more than 7%.
The S&P 500 managed to rally out of the red, but was basically flat. Centene (CNC) was a major laggard, dipping almost 6%. However United Parcel Service (UPS) was surging on strong results, rising more than 11%.
The S&P sectors were mixed. Industrials and financials were leading, while technology was the biggest laggard.
U.S. Stock Market Today Overview
Last Update: 2:52 PM ET 4/27/2021
Small caps were struggling to reach positive ground, with the Russell 2000 roughly flat on the stock market today.
Growth stocks were dragged lower after a spell in the green. The Innovator IBD 50 ETF (FFTY) was down 0.4%.
Dow Jones Rises As Microsoft Lags
The Dow Jones Industrial Average managed to break back into the green after a tough session. It was up around 0.1%.
One of the most notable components was Microsoft, as it is getting set to post earnings. It lagged most of the session, and was just about trading even.
After the close Tuesday, Microsoft is expected to earn $1.78 a share on revenue of $41 billion.
McDonald’s (MCD) was the day’s best performing Dow Jones stock. It posted a gain of around 1.3%.
Tesla Stock Hits Reverse
Electric-car maker Tesla fell despite posting Q1 earnings that beat analyst estimates. The stock had closed Monday’s trading 1.2% higher.
The firm posted EPS of 93 cents on revenue of $10.39 billion. Analysts expected EPS to rise 216% to 79 cents per share, according to Zacks Investment Research. Revenue had been seen charging 66% higher to $9.92 billion.
But while Tesla is selling more vehicles, it is also cutting prices as competitors emerge. Bitcoin trading and the sale of emissions credits to other vehicle makers were also key to the firm turning a profit.
Tesla stock has formed a cup-with-handle base. However it lost ground on its 780.89 buy point after falling around 3%.
Tesla stock has an IBD Composite Rating of 93. Analysts see big earnings gains ahead in 2021 and 2022.
GOOGL Stock Holding Firm With Earnings Due
Microsoft was not the only big name struggling ahead of its latest quarterly report
Google parent Alphabet fell 0.8% but Advanced Micro Devices (AMD) at one point rose more than 1% as the chipmaker gets set report after the close.
Alphabet is expected to earn $15.76 a share on revenue of $51.5 billion. GOOGL stock is currently extended past a 2,145.24 buy point in a flat base.
Meanwhile chip giant AMD is also set to report. Wall Street expects it to earn 44 cents per share on revenue of $3.18 billion.
AMD stock is about 14% off its 52-week high after recently regaining its 50-day line.
Crocs Explodes, Leads Breakouts
Crocs surged on strong earnings, and it managed to hold onto most of its gains. The shoemaker was up around 17% in huge volume.
Q1 results came in above Wall Street expectations, while management also served up higher-than-expected Q2 guidance.
Crocs stock managed to gap up past an 86.50 buy point of a seven-week consolidation, and came close to reaching its profit-taking zone.
The stock has a top-notch Composite Rating of 97, with both earnings and stock market performance strong.
Please read this Investor’s Corner story on how a breakaway gap offers an alternative entry point.
Meanwhile window and door manufacturer PGT Innovations is in a buy zone after breaking out of a six-week flat base. The ideal entry point is 26.95.
Its RS line is looking to make progress after some sideways movement of late. It has a strong EPS Rating of 91, but the firm is expected to report earnings in mid-May.
Lithia Motors (LAD) broke out of a cup-with-handle base. However it has fallen back below its ideal buy point of 406.10.
The stock has been performing well so far in 2020, rising more than 25%. Earnings performance is also strong.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.