The stock market tried to bounce back after a three-day sell-off, but sharp gains at the open faded after the first 90 minutes of trading. The limp action suggested the market is not ready to rebound.
The Nasdaq recovered more than 2% early on, but wall its gain to 0.5% at 11 am ET. The S&P 500 held to a 0.3% gain. The Dow Jones Industrial Average rose 0.1% after rising more than 1%. tech heavyweights Manzana (AAPL), microsoft (MSFT), Alphabet (GOOGL) and Nvidia (NVDA) wall gains to 1.5% to 2.5%.
The Nasdaq’s 4.3% loss Monday marked a three-day losing streak of more than 10%. It was the largest three-day decline since March 2020.
Today’s volume rose on the NYSE and Nasdaq compared with the same time on Monday. Crude oil prices were little changed. The yield on the 10-year Treasury note fell 12 basis points to 2.95%, dropping below 3% for the first time since Thursday.Stock Market Bounce Fades As S&P 500 Trims Gain To Just 0.3%
Tesla (TSLA) bounced 3.5% early but was up less than 1% around 11 am ET. The stock slid more than 9% Monday. The company’s Shanghai plant shut down again Monday after a supplier had to stop shipments due to a Covid infection in one employee, Reuters reported. Other reports said the factory wasn’t entirely halted.
US Stock Market Today Overview
Last Update: 11:00 AM ET 5/10/2022
Other EV stocks rebounded Tuesday morning.
Li Auto (LI) beat first-quarter earnings estimates, but gave weak Q2 delivery and revenue guidance. Shares rose 5.7% after paring a larger opening gain. Xpeng (XPEV)rose 3.2%, child (NIO) jumped 3.6% and Byd (BYDDF) rose 4.2% as all three tried to break a three-day losing streak.
Pfizer (PFE) rose 1.3% but continued to test resistance at the 200-day moving average. The pharmaceutical giant announced it is acquiring Biohaven Pharmaceuticals (BHVN) in a deal valued at $11.6 billion. Biohaven makes the migraine medication Nurtec ODT. Biohaven stock vaulted 71% to the highest since November.
In the current stock market correction, it wouldn’t be a normal day without a catastrophic stock sell-off. On Tuesday, upstart (UPST) took the title, with a 53% hammering in huge volume. The cloud-based consumer lending platform cut its full-year revenue forecast. Higher interest rates and prices threaten a recession this year, the company said.
Rada Electronic Industries (RADA) plummeted 13% in heavy volume after the maker of military systems and sensors posted a first-quarter loss. Israel-based Rada said a delay in the US budget hurt its financial results. The stock, which broke below the 50-day moving average Monday, gapped down today.
Platoon Interactive (PTON) reduced its loss to 12.5%, hitting a record low. The exercise bike company missed expectations for its March-ended quarter and its current-quarter guidance also was below estimates.
Once a winner in the pandemic economy, Peloton is now trading well below its IPO price of 29 per share. With Covid restrictions largely lifted, gyms are recovering. PlanetFitness (PLTN) rose 2.6% on better-than-expected results. The company also backed its 2022 outlook. Planet Fitness shares are still trading near nine-month lows.
Innovator IBD 50 ETF (FFTY) was up 0.8%, improving some while the stock market faded.
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