Tech Stocks Slide as Magnificent Seven Struggle, Oracle Reports Strong Earnings

ICARO Media Group
News
11/03/2024 22h29

In the stock market today, tech giants faced a challenging start as Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, showed little change before Tuesday's opening bell. Meta Platforms and Nvidia, the leaders in artificial intelligence, experienced declines on Monday, while Super Micro Computer also witnessed a significant tumble. However, AI giant Oracle managed to shine with impressive earnings results, leading to a surge in its shares.

Late on Monday, Oracle's stocks soared by over 9% during after-hours trading, displaying a strong performance as an earnings mover. Meanwhile, investors awaited upcoming reports from Adobe and Jabil later in the week.

Investors turned their attention to the U.S. Labor Department's release of the Consumer Price Index (CPI), considered a significant indicator of inflation. The CPI is expected to show a 0.4% increase on a monthly basis, with a year-over-year rise of 3.1%, while core prices in February are anticipated to climb 0.3%, reflecting a 3.7% rise compared to the previous year. The inflation report is scheduled for release at 8:30 a.m. ET.

The performance of major indexes on Monday was mixed, with the Dow Jones Industrial Average gaining 0.1%, while the S&P 500 dipped 0.1%. The tech-heavy Nasdaq composite suffered a 0.4% drop.

Among the Magnificent Seven stocks, Meta Platforms experienced the most significant loss, down 4.4%, while Nvidia slid 2%, extending the bearish trend seen on Friday. Super Micro Computer also faced a challenging day, tumbling more than 5% and closing around 12% below Friday's record high.

In other tech news, Apple and Microsoft, two renowned Dow Jones tech icons, displayed mixed trading activity. Apple's stock rose by 1.2%, while Microsoft faced a slight decline of 0.4% in today's stock market session.

Investors seeking potential stocks to buy and watch today may consider Duolingo, Fifth Third Bancorp, Fortinet, and Block. Additionally, Dow Jones components Disney, IBM, and Procter & Gamble could present compelling investment opportunities.

Prior to Tuesday's opening bell, Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, remained relatively stable compared to fair value, although overnight market movements do not always align with actual trading during regular stock market sessions.

On Monday, the 10-year U.S. Treasury yield climbed to 4.1%, while oil prices held firm near recent highs, with West Texas Intermediate futures settling just above $78 per barrel.

During this confirmed uptrend in the stock market, investors are recommended to stay informed by reading IBD's The Big Picture column, which offers valuable insights into the current outlook. Additionally, IBD MarketSurge features resources such as the "Breaking Out Today" list, which highlights stocks breaking out past new buy points, and the "Near Pivot" list showcasing stocks nearing buy points in bases.

Disney, for instance, is attempting to break out past a significant cup-with-handle base's buy point at 112.92, while IBM stock continues to fall further below a flat base's buy point of 196.90. On the other hand, consumer products giant Procter & Gamble observed a 0.8% rise, extending its position above a cup base's buy point of 158.38.

In terms of growth stocks to watch in the stock market rally, Square stock is attempting to break out, with Duolingo adding a handle to a cup base, Fifth Third Bancorp displaying a continued climb, Fortinet adding a handle to a long cup base, and Block adding a high handle to a cup base.

As investors evaluate their options, these four stocks are considered among the best bets to watch in today's stock market, with each presenting unique opportunities for potential growth.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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