Dow Jones Dives 500 Points As Apple, Tesla Stock Sell Off; Virgin Galactic Plunges 20%



The Dow Jones Industrial Average dived over 500 points before cutting losses Tuesday as Apple and Tesla stock sold off in morning trade. Virgin Galactic plunged as much as 20% on earnings, while Palantir Technologies reversed from sharp losses in the wake of its earnings report.


Among the Dow Jones leaders, Apple (AAPL) sold off almost 2% Tuesday, while Microsoft (MSFT) moved down 0.6% in today’s stock market. Goldman Sachs (GS) is in buy range after a recent breakout, while JPMorgan (JPM) tried to break out Monday.

Tesla (TSLA) cut losses to about 2.7% Monday morning. Virgin Galactic (SPCE) plunged as much as 20% on earnings late Monday, while Palantir Technologies (PLTR) reported before market open Tuesday.

Among the top stocks to buy and watch, Deere (DE) and MarineMax (HZO) are in or near new buy zones.

Microsoft is an IBD Leaderboard stock. Deere is an IBD SwingTrader stock pick, while JPMorgan and MarineMax were featured in this week’s Stocks Near A Buy Zone column.

Dow Jones Today

The Dow Jones Industrial Average traded down 1.3% early Tuesday, while the S&P 500 moved down 1%. The tech-heavy Nasdaq composite pared losses to about 0.5% in midday trade.

Among exchange traded funds, the Innovator IBD 50 (FFTY) dropped 1.8% Tuesday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) traded down 0.6%. Meanwhile, the SPDR S&P 500 ETF (SPY) fell 1%.

Split Stock Market Rally

The Dow Jones Industrial Average reversed from all-time highs Monday, while the S&P 500 fell from Friday’s highs. The tech-heavy Nasdaq tumbled below its key 50-day moving average with Monday’s sharp losses.

Monday’s Big Picture column commented, “The stock market held to a similar script Monday, with large-cap technology stocks under pressure again, while mining, steel and building-sector stocks outperformed. Rising commodity prices continue to fuel inflation fears, but the 10-year Treasury yield didn’t move much, up 2 basis points to 1.60%.”

For more stock market commentary, check out IBD’s The Big Picture.

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Dow Jones Stocks: JPMorgan

Dow Jones financial leader JPMorgan is trying to break out past a 161.79 buy point in a flat base, according to IBD MarketSmith chart analysis. Shares reversed slightly lower to close below the entry Monday. The stock rose 0.5% Tuesday morning and is back above the buy point.

Last week, Dow Jones stock Goldman Sachs broke out past a 356.95 buy point and is in the buy range that goes up to 374.80. Goldman shares fell 0.3% Tuesday morning.

Stocks To Buy And Watch: Deere, MarineMax

Wednesday’s IBD 50 Stocks To Watch pick, Deere, is trying to break out past a 392.52 buy point in a flat base, according to IBD MarketSmith chart analysis. Shares ended Monday just below the buy point. They declined 0.6% Tuesday morning.

Deere is an IBD SwingTrader stock.

IBD 50 stock MarineMax is breaking out past a 64.09 buy point in a cup base, according to IBD MarketSmith chart analysis. Shares cut losses to 1.5% Tuesday morning and are in the 5% buy area that tops out at 67.29.

According to IBD Stock Checkup, MarineMax stock boasts 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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Stock Market Earnings: Palantir, Virgin Galactic

After the stock market close Monday, Virgin Galactic reported a loss of 55 cents a share. Analysts expected a loss of 31 cents per share vs. a loss of 30 cents per share in the year-ago quarter. Meanwhile, the company said its next test flight is under review after previously saying tests were due this month, adding new doubts to when commercial service can begin.

SPCE stock closed Monday more than 70% off its all-time high, which was set on Feb. 4 at 62.80. Shares plunged as much as 20% in morning trade before cutting losses to 5%.

Palantir Technologies reported ahead of the open Tuesday. The company reported adjusted EPS of 4 cents on sales of $341.2 million. Earnings matched estimates, while revenue topped analyst targets.

Shares reversed from sharp losses to rally more than 4% Tuesday morning.

Tesla Stock

Tesla stock cut losses to 2.7% Tuesday, falling further below its key 50-day moving average. Shares are about 30% off their 52-week high.

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 nearly 2% Tuesday, adding to Monday’s 2.6% swoon. The stock is trading below its critical 50-day line. A break below this key area could signal further weakness.

Shares are about 8% below their 135.63 buy point following a short-lived breakout on April 29 past a cup with handle’s entry.

IBD Leaderboard stock Microsoft lost 0.6% Tuesday, as the stock gave up a flat base’s 246.23 buy point, according to IBD MarketSmith chart analysis. The buy zone goes up to 258.54.

The stock found much-needed support at its 50-day line on May 6, but is back at that crucial support area.

Per Leaderboard commentary, “Microsoft fell back into buy range after a poor reaction to the earnings report. It is now rebounding off its 10-week line, creating a follow-on buy area.”

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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