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Apple, Microsoft, United Health and 3M still dominated blue chip emissions as Dow Jones' industrial average, down 396 points on Monday, fell 551 points (2.2%) on Tuesday to bring losses to two. days at 1,055 intraday points, or 4.1%. The Nasdaq composite lost 1.7%, the Nasdaq 100 a little more than that.
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Some decent increases in the revenues and sales of many large-area retailers, including Best buy (BBY) (fiscal 3Q earnings up 19% to 93 cents per share) and Ross Stores (ROST) (EPS up 26%), failed to brighten Wall Street.
However, a handful of long-time market leaders, including HealthEquity (HQY) Square (QS), Fortinet (FTNT) Atlassian (TEAM), Veeva Systems (VEE), ServiceNow (NOW) and Palo Alto Networks (PANW), either gain ground or reduce their losses abruptly. Some of these names are also trying to stay close to their 200-day long-term moving average.
Before the Dow Jones Bottoms, get ready for a new uptrend
At this point, it is essential to wait and wait for evidence that these or other companies are finding a bottom and starting to form the good side of a new base. The minimum length of a cup with handle, for example, is seven weeks. However, a well-formed cup with handle, double bottom, flat base or base on base can take several months, or even up to a year, to finish.
When the market displays the sign of a new bullish trend confirmed, breaks in such graphic trends offer individual investors a timely entry point for maximizing profits and minimizing risks.
Crude oil burned again
Meanwhile, crude oil has suffered greater losses. West Texas Intermediate crude prices at one point fell more than 7.7% to a low of $ 52.77 per barrel in the face of the growing fear that US-China trade rates, as well as uncertainty surrounding the Brexit deal could depress energy demand.
Futures on WTI crude fell more than 30% to a record high of $ 76.90 since the beginning of the year.
Watch for new weekly US Energy Information Administration inventory data released Wednesday, as reported in IBD's annual economic calendar.
Apple leads Dow Jones industrial sector down
Apple (AAPL), which posted gains in sterling since its breakthrough on January 6, 2017, a cup with handle, at 118.12, continues to make its biggest correction since its long decline in 2015 and 2016. The iPhone , the digital services giant and iMac fell by more than 5% to hit an intra-day low of 175.51, extending its decline from an all-time high of 233.47 to nearly 25%. Investors are worried about the slowdown in growth of Apple's iPhone business.
Wall Street has reduced its long-term consensus earnings estimates for Cupertino, California. Analysts now estimate that profits will only increase by 13%, to reach $ 13.48 per share for the current fiscal year ending in September 2019, and up 10% for the year. fiscal year 2020, to reach $ 14.82.
On a quarterly basis, Apple's earnings grew 2%, 11%, 18%, 24%, 16%, 30%, 40%, and 41% from last year's levels over the past eight months. quarters.
State of Nasdaq Composite
At 6908, the composite technology-centered index has now dropped 15% from its historical peak of 8133. This easily matches the definition of a mid-level correction.
During a true market correction, it is common for the best performing stocks to fall 1.5 to 2.5 times more than other indices. Apple is reaffirming this trend.
On Tuesday, the losers beat the winners by more than 3-1 on the Nasdaq and nearly 6 to 1 on the NYSE.
This component of the Dow Jones continues to fall sharply
Goldman Sachs (GS), lagging most of the year, has fallen more than 6 points, or 3%, to about 191. The average component of Wall Street and Dow Jones is now 30% lower than its peers. 52 weeks high. The title obtains a poor composite score 53 on a scale of 1 to 99 in the IBD Stock Check.
Goldman and other money center banks helped the S & P 500 fall by more than 1.8%. The 500, ending the day at 26:41, is 10% below its peak of 2940.
Small-cap companies S & P 600 and Russell 2000 declined 1.5% to 1.6%.
Money has even come out of so-called defensive areas of Wall Street. Dow's average utility has slipped nearly 0.5%. At 728, it shows a slight gain of less than 1% since January 1. But investors are certainly embarking on treasures of US Treasury bonds in the long run. The benchmark 10-year note yield is currently at 3.05%, down sharply from its peak of 3.24% in the near term.
Meanwhile, Target (TGT) lost more than 11% following an opening gap and staged an eighth straight loss. Shares traded at 66.12 and reached their lowest level since early January.
The leading retail discount chain saw a 21% increase in third quarter earnings to $ 1.09 per share, the largest year-over-year increase in the year. 39, other of the last 20 quarters. After-tax margin improved 30 basis points to 3.3%.
Revenues rose 6% to $ 17.59 billion.
Please follow Chung on Twitter at @IBD_DChung for more information on growth stocks, quotes, chart analysis and financial markets.
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