The Dow Jones Industrial Average and other major indexes ended the session in negative territory Tuesday, as investors reacted to plans for new chip tariffs from President Donald Trump. While a multitude of names saw large drops after earnings reports, IBD 50 name Palantir Technologies outperformed on the stock market today.
The Dow Jones Industrial Average ended the day 0.1% lower, or around 62 points. The 30-stock index closed below its 21-day exponential moving average.
The S&P 500 showed a 0.5% loss but held support at its 21-day line. The Nasdaq composite fell around 0.6% and remained above its 21-day line. Small caps on the Russell 2000 outshined the major indexes, and climbed 0.6%.
Volume was higher on the Nasdaq exchange and the New York Stock Exchange compared with Monday, in preliminary numbers. On the Nasdaq exchange, falling stocks edged out rising ones. But on the NYSE, winners pulled ahead of losers by around 4-to-3.
Palantir Stock Rallies
Palantir stock climbed nearly 8% in above average volume and reached a record high. The IBD SwingTrader name has gained 129% so far this year.
3:36 p.m. ET
These Names Get Pummeled
BellRing Brands crashed by more than 31% even after the protein shake company topped fiscal third-quarter earnings and revenue forecasts. But it narrowed its fiscal 2026 sales guidance, which underwhelmed investors.
Kyndryl Holdings plummeted 20% in enormous volume after company missed fiscal first-quarter sales estimates with profit beating expectations. It maintained its fiscal 2026 revenue outlook, which lagged projections. The cloud and technology services stock plunged below its 200-day moving average.
Both of these stocks are showing their largest losses on record, according to Dow Jones Market Data.
Futures: AMD Leads Four AI Earnings Movers Late
2:23 p.m. ET
Stock Market Today: Taiwan Semi Falls After Arrests
Taiwan Semiconductor Manufacturing fell more than 2% on news that three current and former employees were arrested for stealing trade secrets. The suspicious activity was found during standard monitoring. Taiwan Semi is the world's largest semiconductor contract manufacturer and supplies chips to Apple and Nvidia.
Oddity Tech plummeted more than 20% in heavy volume despite the technology-driven health and wellness provider beating second-quarter profit and sales forecasts. The Israel-based company affirmed its full-year 2025 earning and sales outlook, but the midpoints for both were below views.
The stock sliced below its 50-day line in heavy volume, triggering a sell signal and sank below the double-bottom base it was forming.
Lemonade rocketed nearly 29% higher following a smaller-than-expected loss for the second quarter and sales that came in above views. The insurance provider raised its third-quarter and full-year 2025 revenue forecast, thus exceeding estimates. Shares reclaimed their 50-day moving average on the stock market today.
Eaton fell more than 6% despite topping second-quarter profit and revenue forecasts. It also gave a third-quarter earnings outlook that disappointed and tightened its full-year 2025 forecast.
The power equipment stock tested support at its 10-week moving average. Shares gave back gains from a breakout in mid-July and fell back below a 363.42 handle entry.
12:53 p.m. ET
Treasury Yields, Oil Fall
The 10-year Treasury yield dropped to 4.19%. Oil prices sank to around $65.05 a barrel.
Among exchange traded funds, the Invesco QQQ Trust shed around 0.6% while the SPDR S&P 500 ETF fell 0.4%.
Trump Plans New Chip Tariffs
President Donald Trump on Tuesday told CNBC he will announce new import tariffs on semiconductors and pharmaceuticals as early as next week. Trump is calling for more chips to be made in the U.S., which currently accounts for only 10% of the world's semiconductor manufacturing.
But building chipmaking plants is not a quick feat. Intel currently is building a plant in Ohio, which now has a completion date around 2030. Intel and Taiwan Semiconductor Manufacturing were both able to partake in a portion of the subsidies from the U.S. Chips and Science Act to build factories in the U.S.
Still pending are the Trump administration's artificial intelligence chip export restriction rules spelling out which countries will be affected.
Intel stock advanced more than 4%, but has been a laggard, as seen in its weak 25 IBD Relative Strength Rating. Meanwhile, Taiwan Semi stock sank nearly 3% but is extended from a 196.22 buy point out of a cup-with-handle base.
Big Stock Movers: These Three Stocks Get Hit Hard
Vertex Pharmaceuticals cratered nearly 17% following the company's news its wouldn't advance its pain drug used for bunion removal to further testing. This news overshadowed the company's better-than-expected second-quarter earnings and sales results. Shares knifed below their 50-day line in giant volume.
Zebra Technologies plunged nearly 11% following the firm's higher-than-expected second-quarter earnings with in-line sales. It also raised its full-year 2025 profit guidance, which topped estimates and narrowed its sales guidance range. The bar code scanning and technology stock plunged below its 200-day and 50-day lines on the stock market today.
Shift4 Payments tumbled nearly 17% after the payment processing company missed second-quarter earnings with disappointing revenue growth. Shares also gapped down below their 50-day and 200-day lines.
11:27 a.m. ET
Purchasing Managers' Index Rises
In economic news, the U.S. Services Purchasing Managers' Composite Index rose to 55.1 in July, topping the 54.6 expected and June's 52.9 reading. The Services Index came in at 55.7 and was higher than the 55.2 consensus and beat the 52.9 June number.
The Institute for Supply Management Services Index fell to 50.1 in July, which lagged the 51.5 forecast and the 50.8 June result.
Stock Market Today: Axon Leads S&P 500
Axon Enterprise spiked around 15% after the maker of military and law enforcement equipment beat second-quarter profit and sales projections. It also raised its full-year 2025 revenue forecast. Axon reclaimed its 50-day line and reached the 20% profit zone from the 715.99 buy point of a cup base. Axon stock hit a record high on the stock market today and was the biggest gainer on the S&P 500.
IBD 50 and IBD Big Cap 20 name Palantir Technologies surged around 7% and reached a record high on the stock market today. The company reported better-than-expected second-quarter profit and revenue late Monday. Quarterly sales topped $1 billion for the first time.
It also gave third-quarter and full-year 2025 revenue guidance above views. The IBD SwingTrader position is extended from a 133.49 buy point. The stock was a big gainer on the S&P 500 Tuesday.
Hims & Hers Health swung wildly and dropped nearly 5% in recent trades in heavy volume after the online health provider missed second-quarter sales estimates. The IBD 50 stock tested below its 21-day line and is seeking support at the 50-day moving average.
MercadoLibre reversed higher 0.6% after the South American online retail giant missed second-quarter earnings estimates with higher revenue than expected. Shares are testing their 21-day and below the 50-day line.
9:54 a.m. ET
Stock Market Losers: American Eagle, Coinbase
American Eagle Outfitters and Coinbase were early losers on the stock market today.
American Eagle tumbled nearly 5%, giving back a small part of Monday's 23% surge. Coinbase lost 3%, further below its 50-day moving average line. Tesla turned higher, up 0.2%, after skidding almost 1% earlier.
8:47 a.m. ET
Magnificent Seven Stocks: Amazon, Microsoft, Nvidia Lead
The Magnificent Seven stocks were higher Tuesday, as the Round Magnificent Seven ETF climbed 0.4% in premarket action.
Amazon was the biggest winner, up 0.7% and looking to snap a two-day losing streak. Meanwhile, Microsoft and Nvidia both climbed 0.5%. Nvidia stock is once again nearing new highs following Monday's 3.6% rebound.
8:11 a.m. ET
Stock Market Today: Palantir Stock Leaps On Earnings
Palantir stock jumped nearly 7% premarket Tuesday after the company reported better-than-expected results for the second quarter. Strong revenue growth in the software maker's U.S. government and commercial businesses boosted results. The company also issued a strong third-quarter sales forecast and raised its full-year sales outlook.
Reported after the market close on Monday, Palantir earnings for the June quarter were 16 cents a share on an adjusted basis, up 78% from a year earlier. Revenue climbed 48% to just over $1 billion, the maker of data analytics software said.
Earnings Movers: MercadoLibre, Hims & Hers, Vertex
Other key earnings movers Tuesday included MercadoLibre, Hims & Hers Health, Pfizer, Vertex Pharmaceuticals, Yum Brands and Caterpillar.
MercadoLibre sold off more than 6% while Hims & Hers stock plunged nearly 12%. Vertex shares crumbled more than 13% and Yum stock lost nearly 2% in premarket trading. Finally, Pfizer shares rallied more than 1% as Caterpillar shares edged lower after missing earnings estimates.
Stock Market Today: Economic Data
After Friday's July jobs report raised concerns, the Institute for Supply Management services index, due out at 10 a.m. ET, is expected to rise to 52.2 from 50.8 in June, an indicator of accelerating expansion.
Be sure to follow Scott Lehtonen on X at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today.
And follow Kimberley Koenig for more stock market news on X, the platform formerly known as Twitter, @IBD_KKoenig.
