Stock Market Today: Dow Jones and S&P 500 Fall After Reaching Highs; Shipping stocks fall on strike news

Major stock indexes recovered from Tuesday's lows, but the Nasdaq still suffered the most, while the S&P 500 and Dow Jones Industrial Average pared losses to less than 1%. Big tech names Apple (AAPL) and Tesla (TSLA) posted heavy losses on the stock market today.

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The Nasdaq Composite lost 1.6%, or around 300 points, in recent action. The S&P 500 fell 0.9%, a day after the benchmark index hit a record high.

The Dow Jones index also hit an all-time high on Monday, pausing after a three-day rise and falling 0.3%. The Dow Jones shares reduced their losses in the latest action to around 130 points.

Small caps in the Russell 2000 also felt the pain, falling 1.4%. Volume was higher on both the New York Stock Exchange and Nasdaq than at the same time on Monday. Losers outnumbered gainers by about 9 to 5 on the NYSE and by nearly 3 to 1 on the Nasdaq.

And the 10-year Treasury yield fell seven basis points to 3.723%.

West Texas Intermediate crude rose more than 4% to nearly $70.94 a barrel on fears Iran could attack Israel. Shares in the sector rose in line with the rise in oil prices.

ExxonMobil (XOM) gained 1.9% Chevron (CVX) rose 1.8% on the stock market today.

Stocks on the rise: Apple is a big Dow Jones loser

Apple fell 3.5% on the news. Barclays analyst Tim Long believes the tech giant's December quarter appears to be “increasingly at risk” due to disappointing iPhone 16 demand.

Apple stock is in a choppy consolidation with a 237.23 buy point. Apple was the biggest loser in the Dow Jones today.

Operator of senior living facilities pennant group (PNTG) plunged 8% and tested its 50-day line in search of support. The move came after the company announced a public offering of 3.5 million shares, the proceeds of which would be used to pay down debt.

Shares hit a 52-week high on Wednesday. Pennant stock has been extended since its last breakout in December. Shares are up 133% so far this year.

Also, Kratos defense and security solutions (KTOS) rose 4.4%, surpassing the Cup base buy zone that reached 23.91. The bounce came after JPM Securities reiterated its market outperform rating with a price target of 27.

10:48 a.m. ET

Stock market today: dock workers' strike hits shippers

About 45,000 longshoremen went on strike at midnight Tuesday at ports on the East and South Coasts, affecting more than half of all American imports and exports. The strike was about wages and benefits.

According to the Wall Street Journal, major retailers said they could withstand the strike because they received goods early in the season and used West Coast ports in anticipation of industrial action. But officials warned that a “strike that lasts a week or longer could drive up shipping costs and lead to product shortages.”

The shipping companies felt the effects on the stock market today. ZIM Integrated Shipping (ZIM) fell around 7%, while FedEx (FDX) fell 1.4% and United Parcel Service (UPS) fell 2.6%.

Dow Jones component Home Depot (HD) fell 0.8% Best buy (BBY) fell 2.1% on the stock market today. Both are expanded from buy zones.

A flood of business news

In other economic news, the latest reading of September's manufacturing purchasing managers' index, known as PMI, came in at 47.3, versus expectations for 47.0, but was lower than August's reading of 47.9. A reading below 50 indicates a contraction. According to S&P Global, new orders fell for the third straight month, recording the sharpest decline since June 2023.

The Institute for Supply Management's September manufacturing index remained stable and stood at 47.2 in August. The figure is calculated from a monthly survey of purchasing managers at about 300 manufacturing companies across the country and shows overall trends in the factory sector.

The August Labor Department's Job Openings and Workforce Turnover Survey, known as JOLTS. showed that the number of job vacancies rose to 8.04 million from the expected 7.7 million and exceeded 7.673 million in July. The development of the last few months has shown a slowdown in the labor market.

Stock market today: Great seven movers and shakers

Magnificent Seven stock Tesla (TSLA) fell as much as 3.4% ahead of third-quarter delivery numbers expected to be released early Wednesday.

Analysts estimated Tesla's global deliveries totaled 462,000 units, up 6% from the same quarter last year, according to FactSet. Tesla is building the right side of a cup base with a 271 buy point.

Fellow Mag 7 shaft alphabet (GOOGL) reversed, falling 0.3% after initial gains. Pivotal Research initiated coverage on the Google parent stock with a Buy rating and a price target of 215.

Shares are in a base that resembles a double bottom, with an official buy point of 191.75, but an early entry can be seen at 168.64. Shares reached their 50-day moving average on Friday.

Other stockbrokers: McCormick gets things moving

Acuity brands (AYI) reported a huge jump in revenue of more than 5% after the company posted higher-than-expected adjusted profit and revenue in the fourth quarter. With a buy point of 256.64, shares are well above the buy zone of a cup with handle. Shares hit a new high on the stock market today before falling.

McCormick (MKC) posted a 0.7% gain after the spice company beat adjusted earnings and sales for the fiscal third quarter. Management also raised its profit forecast for fiscal 2024. Shares are in the buy zone of a cup with handle with a buy point of 79.37.

Anheuser-Busch InBev (BUD) climbed 1% and is in the 5% buy zone up to 68.46 of a cup-with-handle base with a 65.20 buy point. Shares rose after Citigroup upgraded the beverage stock to “buy” from “neutral.”

CVS Health (CVS) rose another 1.8% after news that the troubled drugstore giant is considering strategic options, including a corporate breakup. CVS stock has lost 21% so far this year.

Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.

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