Dow Jones turns positive; Gold and silver stocks look tarnished

Stocks improved on Tuesday afternoon as the Dow Jones Industrial Average rebounded while the Nasdaq and S&P 500 held on for small losses. Insulin producer Novo Nordisk (NVO) erupted from a base while Nvidia (NVDA) rallied higher on the stock market today, building on Monday’s record close.

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The Dow Jones climbed and produced a 0.2% gain, but remained below its 50-day moving average. The S&P 500 trimmed its loss to 0.2%, while the Nasdaq also retreated 0.2%. The small-cap Russell 2000 remained weak, slipping 1.3%.

Volume fell on the Nasdaq and the New York Stock Exchange from Monday’s session. The Innovator IBD 50 exchange-traded fund ( FFTY ) sold off 1.5% and is on pace for its sixth straight decline.

Meanwhile, the Labor Department’s April Job Openings and Labor Turnover Survey, known as JOLTS, showed April job openings of 8.059 million compared to. 8.4 million expected.

Also, the 10-year Treasury yield fell by 8 basis points to 4.32%. And U.S. crude oil prices fell to $73.60 a barrel as financial markets reacted to concerns about a weakening economy.

Stock market today: Novo explodes, Nvidia waves

IBD 50 Novo Nordisk shares broke out of the fourth-stage cup-with-handle base with a 137.22 buy point. The IBD Leaderboard and SwingTrader stock is at the low end of its 5% buy range, hitting 144.08.

On May 2, the insulin maker reported better-than-expected adjusted earnings and sales for the first quarter, but missed big revenue expectations from its weight-loss drug Wegovy. The stock carries an Accumulation/Distribution Rating of A-, indicating fairly large institutional buying over the past 13 weeks.

IBD 50 and Leaderboard name Nvidia was unchanged after a 4.9% gain and record close on Monday. Monday’s jump came after Chief Executive Jensen Huang announced Nvidia’s artificial intelligence chip plans through 2026 Sunday night ahead of Taiwan’s electronics trade show, Computex 2024. The IBD Big Cap 20 stock widens from an entry on the handle to 922.20 and an alternative 974 BUY point.

Tesla ( TSLA ) CEO Elon Musk sent emails to Nvidia asking the chip company to divert chip shipments from Tesla to Musk’s social media platform X, according to CNBC. That could delay Tesla’s chips for developing self-driving technology and humanoid robots, CNBC added. Tesla shares fell 0.4%.

Intel (INTC) turned lower on the stock market today. The company announced new processors and architectures at Computex for artificial intelligence ecosystems, including data centers, cloud networks and PCs.

Metal stocks fall sharply

IBD Big Cap 20 Stocks Agnico-Eagle Mine (AEM) dipped more than 5% and pulled back from the 20% profit zone of a cup base with a 56.43 buy point. Gold mining stocks fell in sympathy with falling gold prices.

The shiny metal fell more than 1% on news Swiss data showed weaker demand in April and three straight months of declining exports, according to the Wall Street Journal. Demand from China has fallen as the price of gold has risen to all-time highs.

Also, to a lesser extent, the exchange-traded fund SPDR Gold Shares (GLD) was also affected, which lost 0.8% and tested its 50-day line, looking for support.

Another name IBD 50, Pan American Silver (PAAS), was breached and lost about 6% as silver futures fell more than 3%. The stock fell below its 50-day moving average on the stock market today.

Stocks on the Move: IBD 50 Stock Powell chokes again

Elsewhere, IBD 50 stocks Powell Industries ( POWL ) fell another 7% and is on track for a third straight decline. The power plant equipment maker’s stock broke out of a cup-handle base with a 183.49 buy point on May 21 and climbed to an all-time high on May 28, before its sell-off began on Friday.

The stock is testing its 50-day line. The stock bounced back 26% from the high and triggered a sell signal.

GameStop ( GME ) pared the biggest losses and returned about 1% after Monday’s 21% gain. Monday’s move in meme shares came after Keith Gill, an influential social media investor, suggested he had acquired a large position in the games retailer.

Gill uses Morgan StanleyE-Trade e (MS) and the firm and brokerage are considering banning the trader over concerns of stock manipulation, according to The Wall Street Journal.

Health Equality (HQY) broke out of a flat base with an 84.49 buy point, according to MarketSurge’s recognition model. But the stock fell back below the buy point. The company topped fiscal first-quarter profit and sales estimates and raised its full-year earnings and revenue outlook. HealthEquity is a health savings account administrator with over 14 million members.

Stock market profit movers today

Donaldson (DCI), an industrial air filtration company, topped profit and sales projections for its fiscal third quarter and raised its full-year profit forecast. The stock briefly regained its 50-day line, but pared gains to 1% in afternoon trading.

Bath & Body Works ( BBWI ) fell nearly 13% in heavy volume. The retailer reported better-than-expected first-quarter earnings and sales.

But investors were confident about his disappointing forecast for the second quarter and full year. The retailer — the biggest loser in the S&P 500 today — fell more than 8% below its 50.34 buy point, triggering a sell signal.

Core and main (CNM) fell more than 17% on heavy volume after the company’s mixed fiscal first quarter results. Earnings fell short of views, while sales topped forecasts.

The water, sewer and fire products and services company raised its net sales outlook for 2024. Shares fell further below the 50-day line and undershot a flat base with a 60.93 buy point, on the stock market today.

Follow Kimberley Koenig for more scholarship news on X/Twitter @IBD_KKoenig.

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