The stock market sold off in morning trade Tuesday, amid Home Depot’s (HD) weak quarterly sales. Meanwhile, electric automaker Tesla (TSLA) skidded after an analyst price-target cut in the stock market today. (For updates on this story and other market coverage, visit Stock Market Today.)
The tech-heavy Nasdaq held the biggest loss of the three major indexes with a 1.1% decline. The S&P 500 and the Dow Jones industrial average fell about 0.8% apiece.
Among the Dow stocks, Home Depot (HD) faltered 1.5% after reporting weaker-than-expected quarterly revenue and same-store sales early Tuesday. The stock is shaping the right side of a potential cup-shaped base.
Meanwhile, Leaderboard name Apple (AAPL) fell 1% and is back within the 5% buy range from a double bottom’s 179.04 buy point. The stock’s three day sell-off has been in light volume, indicating institutions have been hesitant to unload their shares.
Among companies reporting earnings, China Hotel Lodging (HTHT) briefly surged to a breakout above a late-stage base’s 161 buy point in a double-bottom base. But the stock faltered amid the market’s weakness and slipped back below that level. The IBD 50 stock rose 4%. The company announced its Q1 results late Monday.
FANG stocks were sharply lower through morning trade Tuesday. Longtime leaders Netflix (NFLX) and Amazon.com (AMZN) declined 1.4% and 1.8%, respectively. Both stocks may be setting up for new tests of their 50-day moving average lines.
Tesla dropped 2% to about 286 Tuesday after Morgan Stanley analysts cut their price target on the electric automaker from 376 to 291. The company is facing a management exodus, while CEO Elon Musk announced a “thorough reorganization” to employees Monday.
Inside The IBD 50
Among the top growth stocks, a number of leaders held losses of 1.5% or greater, including Alibaba (BABA). The Chinese e-commerce giant fell 1.6%, but is still lingering near a potential 201.60 double-bottom buy point.
Elsewhere, Nvidia (NVDA) traded sharply lower with a loss of nearly 3%. The graphics-chip maker back in the 5% buy range from a 239.35 double-bottom entry.
On the upside, Canadian retailer Canada Goose (GOOS) rose 2.5% to hit an all-time high. Shares have been volatile, but trending upward, since a breakout above a 36.76 cup-with-handle entry.