The key market indexes extended their losses in early afternoon trading Tuesday as sinking oil prices continued to roil stocks.
The Nasdaq slumped 1.7%, while the Dow Jones industrial average and S&P 500 lost 1.6% each. Volume was higher across the board vs. the same time Monday.
Automakers, energy companies and chipmakers led the broad decline in the stock market today. Tesla (TSLA) skidded 7% in fast turnover. The stock is 35% off its high and trading near its lowest levels since March. Pacific Crest Securities reiterated a sector-weight rating but cut its 2016 EPS estimate to 27 cents from 76 cents. The research firm cited channel checks that show Model X orders continue to lag expectations.
Ferrari (RACE) plunged 12% in speedy trade to a record low after reporting Q4 results and forecasting a slowdown in sales this year. Shares are 43% off their high. The Italian carmaker came public in October as a spinoff from Fiat Chrysler Automobiles.
On the IBD 50, Integrated Device Technology (IDTI) gapped down and sank 27% in massive volume despite announcing fiscal Q3 earnings late Monday that met views and sales that beat. Its Q4 sales guidance missed analyst forecasts. Bank of America downgraded the chipmaker to neutral from buy; Wedbush Securities raised the stock to outperform from neutral and lifted the price target to 27 from 26.
Toymakers and Internet content stocks were among the handful of groups notching gains. Mattel (MAT) gapped up and leapt 14% to a 14-month high, surpassing a 28.03 handle buy point in hefty trade. It's now extended past the entry. The Barbie and Hot Wheels maker late Tuesday reported Q4 results that topped views. Worldwide sales of Barbie, Fisher-Price, Hot Wheels and Matchbox toys rose, but the American Girl and Monster High brands lagged. Stifel Nicolaus boosted its rating to buy from hold.
Alphabet (GOOGL), which delivered a Q4 earnings and revenue beat late Monday, rose 3% in a fourth straight up session. Shares are extended from a 713.43 buy point. The Internet giant has now officially topped Apple (AAPL) as the most valuable company. Stifel raised its price target on Alphabet to 930 from 900 and Axiom Capital to 1,001 from 1,000.
Facebook (FB) added 1% in heavy volume, extending its win streak to four. The stock is now extended past a 110.75 buy point cleared Friday after the social network crushed Q4 views.
