The Dow Jones Industrial Average and other major indexes ended the day Tuesday with considerable losses, but improved from the day's lows. The Dow was weighed down by Nvidia, although the majority of names closed lower. Also, Warren Buffett stewed over the Kraft Heinz breakup on the stock market today.
Blue chips on the Dow closed with a 0.6% loss, or 249 points, in the first session after the Labor Day weekend. The 30-stock index remained above the 45,000 level.
The S&P 500 sank 0.7% and closed right on its 21-day exponential moving average. The Nasdaq composite fell below its 21-day line with a 0.8% drop, adding to Friday's 1.2% loss. Small caps on the Russell 2000 also felt the pinch, and gave up 0.6%.
Volume was significantly higher on the Nasdaq exchange and on the New York Stock Exchange compared with Friday, in preliminary numbers. On the Nasdaq exchange, falling stocks edged out rising ones by more than 2-to-1. On the NYSE, losers topped winners by nearly 5-to-3.
Stock Market Today: Nvidia Loses, Palantir Perks Up
Nvidia stock ended the day with a near-2% loss. It joined Goldman Sachs and Nike as the top three losers on the Dow. Goldman stock fell 1.9% while Nike showed the largest loss, with a 3.5% drop.
Nvidia extended its losing streak to four straight sessions. The IBD 50 stock closed a tad below the closely watched 50-day moving average.
Outside of the Dow, Palantir Technologies improved from morning losses and reversed higher, ending the session with a 0.2% gain. Unlike Nvidia, Palantir stock closed above its 50-day line after testing it Tuesday.
3:37 p.m. ET
Warren Buffett Deal Unwinds
Kraft Heinz stumbled more than 7% on news the Berkshire Hathaway-backed packaged food maker will split into two publicly traded companies. Investors will get shares in two new companies. Kraft Heinz stock plunged below its 50-day line on the stock market today.
Kraft Heinz stock's drop is its largest percentage decrease since May 18, 2022, when it fell 9.55%, according to Dow Jones Market Data. Shares have lost around 15% so far this year.
Berkshire Hathaway's 95-year old leader, Warren Buffett, told CNBC that he is "disappointed" in the firm's breakup, as he was the instigator of the deal to bring them together in 2015. Berkshire Hathaway owned 27.5% of Kraft Heinz's outstanding shares as of July 26.
Meanwhile, Berkshire Hathaway stock pulled back 0.7% after four straight rising sessions. Shares are building the right side of a cup base with a 542.07 buy point.
Futures: Google, Apple Jump On Antitrust Ruling
2:14 p.m. ET
Taylor Swift Wears This; Bitcoin Miner Hits A Record High
The No. 1 stock in the elite IBD 50 is Iren. Shares rallied more than 8% in heavy trading, adding to Friday's surge of nearly 15%.
Friday's robust move came after the bitcoin miner crushed estimates for its fiscal fourth-quarter earnings and sales. Iren stock hit an all-time high of 29.85 on the stock market today.
Iren has expanded into the data center power business. It is harnessing excess processing capacity and existing power connections to help expedite data center buildouts.
Fashion retailer Ralph Lauren punched more than 4% higher and also reached an all-time high Tuesday. Shares broke out of a newly formed flat base with a 306.34 buy point. The stock is in the buy range up to 321.66. Its relative strength line hit a 52-week high as shown by the blue dot on the MarketSurge weekly chart.
American fashion brands have performed strongly this year as part of a five-year rally, according to a recent Wall Street Journal story. And Ralph Lauren stock took second place to Tapestry in five-year performance. Ralph Lauren stock has climbed 33% so far this year, while Tapestry has gained 57%.
Ralph Lauren got attention after pop star Taylor Swift and her fiance, pro football star Travis Kelce, wore coordinating Ralph Lauren outfits in their engagement photo posted on Instagram.
Tapestry climbed 0.8% Tuesday. The company owns Coach and Kate Spade brands.
12:40 p.m. ET
Economic News: PMI Lags Estimate
The Markit Purchasing Managers' Manufacturing Index, or PMI, rose to 53 in August but missed the expected reading of 53.3. Still, the result was higher than the 49.8 reading in July.
The Institute for Supply Management Manufacturing Index met expectations at 48.7, exceeding July's 48 reading.
Stock Movers: This Gold Stock Breaks Out
IBD MarketSurge Growth 250 name Alamos Gold bolted more than 4% higher and broke out of a late-stage cup base with a 31 buy point. Shares are in a 5% buy zone up to 32.55.
The gold producer hit a record high on the stock market today. Many gold stocks are rising along with the price of gold, which hit a new hit high Tuesday, topping $3,500 per ounce.
Signet Jewelers advanced 1.5% after the jewelry retailer beat fiscal second-quarter earnings and sales forecasts. Its profit grew 29% following 6% in the prior quarter and four straight quarters of flat or declining earnings. Its second-quarter revenue increase of 3% was an improvement over the 2% hike in its fiscal first quarter, and six straight declining periods prior to that.
Signet also raised its fiscal 2026 profit and revenue outlook, although the midpoint of its earnings forecast fell short of estimates. Signet stock retook a 88.51 buy point out of a deep cup-with-handle base and is in a buy range up to 92.94. But the 58% depth of that base adds extra risk.
Ionis Pharmaceuticals rocketed nearly 33% higher in huge volume following news its experimental drug, olezarsen, topped the placebo in a study of patients with severely high triglycerides. Shares have more than doubled from a 52-week low, reached on April 9.
11:17 a.m. ET
Stock Market Today: Oil Prices Lift Higher
The 10-year Treasury yield inched up to just around 4.26%. Oil prices jumped to around $65 a barrel. Bitcoin rallied up to over $111,300 in recent action.
Among exchange traded funds, the Invesco QQQ Trust moved down 1.4%. Also, the SPDR S&P 500 ETF lost 1.2% Tuesday morning.
Pepsi Jumps
PepsiCo climbed more than 2% on news that hedge fund Elliot Management has a $4 billion stake in the beverage giant and plans to make changes. The stock was the biggest gainer on the S&P 500 Tuesday.
Elliot Management is seeking ways to boost share price, as Pepsi's market cap has dropped more than 25% from $270 billion in May 2023. Further, Pepsi Cola has dropped to fourth place based on U.S. sales volume, with Coke holding the No. 1 spot. Pepsi shares hold a weak 36 IBD Relative Strength Rating.
Meanwhile, another Elliot Management position, Triple Flag Precious Metals, added another 1.8% and reached a record high on the stock market today. The IBD 50 and IBD Sector Leaders gold stock is extended from a flat base with a 25.45 buy point. But shares are in the buy zone of a three-weeks-tight pattern up to 28.53, from the 27.17 entry.
Nvidia Tests A Key Level
Nvidia fell nearly 3% and is on pace for four straight days of losses. The Dow stock dropped further below its 21-day exponential moving average and sank below the closely watched 50-day moving average, Tuesday.
The artificial intelligence leader felt pressure on Friday's news that Alibaba is developing its own artificial intelligence chip. The initiative stemmed from U.S. regulators prohibiting the sale of some chips to China, including Nvidia's H20, though the chips were approved for export in July.
Alibaba rose nearly 2% Tuesday. Shares are in a 24-week long consolidation pattern with an official 148.43 buy point, but cleared an entry at 127.93 on Friday. Alibaba was Thursday's IBD Stock Of The Day.
9:51 a.m. ET
Nasdaq 100 Winners, Losers: PepsiCo, Shopify, AppLovin
Inside the Nasdaq 100, PepsiCo and Biogen were among the best performers, up roughly 3% each. PepsiCo jumped after Elliott Management disclosed a $4 billion stake in the beverage giant.
On the downside, Shopify and AppLovin tumbled around 3% each.
9:06 a.m. ET
Stock Market Today: Academy Sports, Nio
Academy Sports & Outdoors and Chinese electric-vehicle maker Nio were earnings movers Tuesday morning.
Shares of Academy tumbled more than 4%, while Nio stock wavered in premarket trading.
Nio reported a smaller-than-expected loss for its second quarter, while revenue came in light. The EV maker predicted third-quarter deliveries of 87,000 to 91,000. With July and August sales already in hand, that signals September deliveries of 34,678 to 38,678.
8:18 a.m. ET
Stock Market Today: Nvidia, Palantir Drop
Nvidia stock sold off 2.5% Tuesday premarket, threatening to extend a losing streak to four sessions and add to Friday's 3.3% drop. Shares are pulling back to their 50-day moving average, a key support level to watch.
Meanwhile, Palantir shares declined nearly 4% in early action. Palantir stock also is fighting for support around the 50-day line.
Trump Tariff News
Late Friday, a federal appeals court ruled that most of President Donald Trump's tariffs are illegal, a blow to his economic agenda. But the duties will stay in force for now, and the president would have other options.
The U.S. Court of Appeals for the Federal Circuit upheld a May ruling by the Court of International Trade that Trump exceeded his authority by invoking an emergency law, the International Emergency Economic Powers Act.
The judges sent the case back to the lower court to determine if the ruling applied to everyone affected by the Trump tariffs or just the specific parties in the case. The panel left the Trump tariffs in question in force until Oct. 14, giving time for the White House to appeal to the Supreme Court.
Stock Market Today: Economic Data Due
Due out at 9:45 a.m. ET, the Purchasing Managers' Manufacturing Index is anticipated at 53.3 in August, up from July's 49.8 reading.
Meanwhile, the ISM Manufacturing Index for August, scheduled for 10 a.m. ET, is expected to rise to 48.7 vs. 48.0 in July.
Finally, the U.S. Commerce Department's report on July construction spending is on the agenda for 10 a.m. ET. Spending is estimated to rise 0.1% on the month. Last month, construction spending dropped 0.4%, with an annual decline totaling -2.9%.
On Deck: Broadcom Earnings, Jobs Report
Dow Jones cloud giant Salesforce.com and chip titan Broadcom headline the week's earnings calendar. Lululemon Athletica leads a pack of reports from retailers, many of which spiked in the past week on earnings news. Zscaler and Argan are also due to report.
On the economic front, Friday's August jobs report from the Labor Department takes the spotlight, but even a strong report likely won't derail a Federal Reserve rate cut on Sept. 17. After noting that rising labor market risks "may warrant" a rate cut, one report isn't expected to change Fed Chairman Jerome Powell's mind. Yet the Fed's rate-cut outlook beyond September could shift substantially.
The unemployment rate is the key number, marking the balance between labor supply and demand. If the jobless rate ticks up to 4.3%, from 4.2%, as economists expect, markets may start pricing in rate cuts of 75 basis points in 2025, not just 50.
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