Stock market bounces down, but software collapses | Daily investors



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The stock market rebounded Thursday between the low points of the session and a mixed closure, but the booming software sector had a forgotten day.




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The software sector, which has risen nearly 28% before Thursday's slide, is IBD's main sector and has seen many of its best stocks fall sharply.

Sector Leaders Atlassian (TEAM) and Palo Alto Networks (PANW) fell 4.5% and 2%, respectively, but both remained above their 50-day moving average. Palo Alto continues to work on a flat basis. ServiceNow (NOW), down 4%, also stopped falling on the 50-day line.

Some others did not have that chance. Zscaler (ZS) fell by almost 9%, the largest decline since November 19th. The title has been removed from the IBD ranking.

ETF's Tech-Software Expanded IShares (IGV) fund lost 1.9%, but remained above its latest entry at 206.76. Indeed, most software leaders have higher levels of support

The sector's defeat was the main reason why the Nasdaq advanced technology composite fell behind, closing down less than 0.1%. It had been down 0.6%. The S & P 500 gained 0.2% and the Dow Jones Industrial Average 0.6%. The Russell 2000 rose 0.4% at closing. Volume fell from Wednesday totals, according to unconfirmed data.

Retail, Materials and Consumers Sector

Retail trade, materials, consumer discretionary, energy and financials were the top performers. The automakers were the worst industrial group of the day, and this was due to You're here (TSLA). Shares down, down 8% in heavy volume.

The electric car maker reported lower than expected shipments in the first quarter and warned that its net profit would be "negatively affected". Also on Thursday, CEO Elon Musk appeared in federal court after the SEC accused him of violating the terms of an agreement.

The innovative IBD 50 ETF (FFTY) lost 0.9%. Eight of the 50 stocks are software companies and all have closed down. Based in China Baozun (BZUN) is at the bottom of the pile, down 7.2% and just behind the 200-day moving average.

March payroll data will be released on Friday before the market opens. The report, one of the most watched on Wall Street, is expected to post 170,000 new jobs and an unemployment rate of 3.8%.

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