Major market indexes fell for a second straight session in the stock market today, though they pared steep early losses to close near their intraday highs.
XThe Nasdaq led the decline with a 0.9% loss. The S&P 500 fell 0.5% and the Dow Jones industrial average gave up 0.4%. Small caps stumbled too as the Russell 2000 shed 0.9%. Volume was lower on both the NYSE and Nasdaq vs. Friday, according to preliminary data. That suggests institutional investors weren't dumping stocks.
Techs weighed on the Nasdaq, with chip stocks Micron Technology (MU) and Western Digital (WDC) diving more than 4% each.
Walgreens Boots Alliance (WBA), Apple (AAPL) and Merck (MRK) weighed on the Dow with losses of 1.5% or more apiece. Apple has been trying to snap out of a three-month decline, but has so far been unable to maintain an advance for long. Wedbush, which maintained an outperform rating, said in a report the company needs to cut pricing on its midrange iPhone XR to get back on track.
Blue chip banks avoided the downdraft as JPMorgan (JPM) and Goldman Sachs (GS) rose more than 1% each. They got an assist from Citigroup (C), which rallied 4% on the heels of a positive earnings report. Citi is close to retaking its 50-day line.
Lululemon Outperforms In The Stock Market Today
Software, automakers and chip stocks led the downside among sectors in the stock market today. Leisure-travel, auto parts makers and financial stocks were among the gainers.
Over in the IBD 50, the biggest losers included Ubiquiti Networks (UBNT), Wingstop (WING) and Ulta Beauty (ULTA), down 3% to 4% each.
But Lululemon (LULU) bucked the sell-off with a 6% gain after the yoga-inspired apparel maker lifted its Q4 revenue guidance. The company now expects $1.14 billion-$1.15 billion in sales, up from the $1.115 billion-$1.125 billion it saw earlier. Analysts expect $1.13 billion. Lululemon also boosted its Q4 EPS outlook, citing better-than-expected holiday sales.
Shares are working on a base with a 164.89 buy point. They regained their 50-day line last week.
The Innovator IBD 50 ETF (FFTY) dipped 1.2% after bumping up against resistance at the 50-day line last week.
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