Stock Market Mainly Lower As Techs, Transports Slide; Robinhood Tumbles On Downgrade

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The stock market was mainly lower in the first half-hour of trading Friday as technology came under renewed pressure, and the transportation sector skidded after Bank of America downgraded multiple stocks.




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The Nasdaq composite fell 1.3% and slipped below its 50-day moving average, weakening a tentative hold on that key level. After Wednesday’s sharp gap-down, the index held above its 50-day average. On Thursday, the Nasdaq reversed higher around the 50-day line.

The S&P 500 fell 0.1%. While the S&P has held above the 50-day average since March 18, it faces another test at the 200-day moving average. In morning trading, the index was slightly below the line.

The Dow Jones Industrial Average, up 0.2% this morning, is finding support at the 50-day line this week.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 34561.44 +64.93 +0.19
S&P 500 (0S&P5) 4478.23 -2.92 -0.07
Nasdaq (0NDQC ) 13710.03 -178.79 -1.29
Russell 2000 (IWM) 197.61 -2.50 -1.25
IBD 50 (FFTY) 36.80 +0.10 +0.27
Last Update: 10:04 AM ET 4/8/2022

After Wednesday’s close, IBD lowered its market outlook to “uptrend under pressure.” Some leading stocks came under selling, while some techs saw renewed weakness.

Techs Lead Stock Market Losses

Volume today rose on the Nasdaq and fell on the NYSE compared with the same time on Thursday.

Technology Select Sector SPDR (XLK) fell 1.3% in one of the deepest drops among S&P sector ETFs. Semiconductors and some software industry groups were among the day’s weakest.

The yield on the 10-year Treasury note rose 3 basis points to 2.68% and is up more than 30 basis points on hawkish talk from Fed officials.

Robinhood Markets (HOOD) slid 7.1% after Goldman Sachs downgraded the online brokerage to sell from neutral. Goldman also cut the price target to 13 from 15. Robinhood stock was already trading near all-time lows, closing at 12.07 Thursday. After rallying a few days after its July 2021 IPO, the stock has been in a long descent and is below the IPO price of 38 a share.

Airfreight and railroad industry groups fell more than 1%, and SPDR S&P Transportation (XTN) fell 1.5%.

Transportation Sector Lower After Analyst Downgrades

Bank of America downgraded nine transportation stocks today, citing “deteriorating demand outlooks and rapidly falling freight rates.” BofA downgraded UPS (UPS) to neutral from buy. The stock fell 3% to the lowest point since Oct. 13.

It also downgraded Union Pacific (UNP) and Canadian Pacific (CP) to neutral from buy, and several trucking and related companies, including Saia (SAIA), ArcBest (ARCB) and container lessor Triton International (TRTN). Triton, cut to underperform from buy, sold off 9% in huge volume. The stock fell to its 200-day line after breaking below the 50-day on Wednesday.

But C.H. Robinson Worldwide (CHRW) rose 1.7% after JPMorgan Chase upgraded the stock to overweight from neutral and lifted the price target to 117 from 91. The logistics company broke out of a cup-with-handle base March 25, but soon triggered the 7%-8% sell rule. The stock is now rebounding from its 50-day line.

IBD 50 Outperforms Stock Market

The Innovator IBD 50 ETF (FFTY) rose 0.3%. Fertilizer, energy and food-related stocks led the IBD 50. Regeneron Pharmaceuticals (REGN) climbed to a new high and is extended from a 673.96 buy point.

Tesla (TSLA) was the worst-performing IBD 50 stock, down 1.4%. Late Thursday, the EV maker launched its Texas factory with a handful of deliveries. Tesla’s Shanghai factory remains closed due to a surge in Covid cases. Also, China regulators said Tesla needs a safety-related software fix for a semiconductor component on more than 127,000 Model 3s.

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