Dow Jones plunges; Tesla Dive Into This Elon Musk Twitter Move; Apple and Microsoft fall as technology collapses

The Dow Jones plunged when the stock market crashed. You’re here (TSLA) dove amid reports that Elon Musk could become temporary CEO of Twitter (TWTR) if he finalizes his recovery. Apple (AAPL) and Microsoft (MSFT) offered no refuge as tech stocks were mangled.


With the market correcting, it’s a good idea to find stocks faltering amid downward pressure. Automatic data processing (ADP), Dillard’s (DDS) and General dynamics (GD) all saw their relative strength lines hit highs on Thursday as they built bullish bases.

Volume was up on the Nasdaq and the New York Stock Exchange from the same time on Wednesday. This is a bad sign on a low day.

Meanwhile, the yield on the benchmark 10-year Treasury bond jumped 18 basis points to 3.1%. The move follows Wednesday’s decision by the Federal Reserve to raise interest rates by half a point and begin to reduce its balance sheet.

Oil fell slightly, with West Texas Intermediate crude falling less than 1% to trade at around $107 a barrel.

Nasdaq crushed as tech stocks struggle

The stock market gave up Wednesday’s gains after Fed Chairman Jerome Powell’s press conference.

The Nasdaq was the hardest hit on Thursday, falling nearly 5%. Cognizant technology solutions (CSP) was among the worst performers, dropping about 13% after cutting its forecast.

The S&P 500 also fell more than 3%. Etsy (ETSY) was among the worst offenders here. It lost nearly 17% after posting a weak outlook in its last quarterly report.

Overview of the US stock market today

Hint Symbol Price loss of profit % Switch
Dow Jones (0DJIA) 33062.90 -998.16 -2.93
S&P500 (0S&P5) 4155.62 -144.55 -3.36
Nasdaq (0NDQC ) 12359.23 -605.63 -4.67
Russell 2000 (IWM) 185.75 -7.77 -4.02
INN 50 (FFTY) 32.18 -1.04 -3.13
Last Updated: 1:24 PM ET 5/5/2022

Keep in mind that the S&P 500 or Nasdaq would have to drop 7% for a circuit breaker to trip and stop trading in the market.

The sp sectors were all negative. Consumer Discretionary and Technology fared the worst, with Utilities being the best.

Small caps were crushed, with the Russell 2000 losing 4%.

Growth stocks also fell sharply. The Innovator IBD 50 ETF (FFTY) fell more than 3%.

The Dow Jones loses nearly 1,200 points

The Dow Jones Industrial Average was mangled by the bears, plunging as low as 1,200 points, although it recovered slightly to around 1,000 points in afternoon trading, a drop of almost 3 %.

The general nature of the losses is worrying. Selling power (RCMP) was the worst performer in the Dow with a drop of almost 8%. It looks set to end a short-lived rally and lose further ground on its major moving averages.

Nike (NKE) was another laggard as it slipped almost 6%. Home deposit (HD) also collapsed, losing more than 5%.

There was no advantage, with Amgen (AMGN) and Coca Cola (KO) the best performers due to the fact that they were down less than 1% each.

Apple Stock and Microsoft Offer No Refuge as Big Tech Crashes

Big tech has long served as a safe haven for investors but that was certainly not the case on Thursday.

Apple was among the worst performers in the Dow Jones with a 5% drop. It is now back below its 200-day moving average. It also lost ground on a buy point of 183.04, MarketSmith analysis shows.

Ranking Stock Microsoft was another failing blue chip. It was down almost 5%. It continues to consolidate below its major moving averages, despite a recent strong earnings report.

ParentGoogle Alphabet (GOOGL) was close to session lows as it fell nearly 5%. Its losses are minimal compared to the e-commerce giant (AMZN), which fell about 7%.

Tesla Stock Spanked Amid Elon Musk Twitter Report

Tesla stock has been hammered again amid new revelations about CEO Musk’s decision to take over Twitter.

The stock fell more than 7% after a CNBC report that the quirky eccentric will serve as temporary CEO if he completes the $44 billion buyout.

Current Twitter CEO Parag Agrawal only ran the company for a few months after founder Jack Dorsey stepped down. Meanwhile, Elon Musk has revealed he received $7 billion in new funding to fuel his deal to buy the social media company.

The Twitter stock was one of the stocks that rose on the back of the news. It increased by more than 3%.

Outside of Dow Jones: These 3 Stocks Are Basics

When the stock market is in turmoil, investors are best served by building their watch list.

Look for stocks, such as the ones below, showing relative strength. All saw their RS lines reach new heights today

The automatic data processing is worth watching as it creates a mug base with handle. The ideal buy point is 240.73. The title, however, fell by almost 5% on Thursday.

The company is posting solid results. Additionally, it is among the top 11% performing stocks in terms of stock market performance over the past 12 months.

The Dillard’s department store play forms a cup base with an ideal entry point of 416.81, according to MarketSmith analysis.

General Dynamics is building a flat bottom with an entry point of 255.09. The stock managed to cross its 10-week line this week, an encouraging sign.

General Dynamics and other defense stocks surged at the start of the Russian invasion of Ukraine. This is prompting Europe and other countries to dramatically increase their defense spending, which should benefit these companies in the long run.

Last week, General Dynamics beat Wall Street’s views on the top and bottom lines for the most recent quarter.

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