Stock Market Update: Dow Steady, Tech Stocks Shine, and AI Sector Leads Gains

The Dow Jones Industrial Average trimmed midday losses to trade nearly unchanged in the afternoon, with investors awaiting comments from Federal Reserve Chair Jerome Powell on Wednesday.

The S&P 500 also traded flat after hitting a record high on Monday, while the Nasdaq bucked the trend with a 0.2% gain, extending its record-breaking rally.

The Russell 2000 small-cap index trimmed losses to 0.5%, and the Innovator IBD 50 ETF (FFTY) posted a 0.7% gain.

Trading volume declined on both the NYSE and Nasdaq, with decliners outpacing advancers across both exchanges.

Economic Data and Federal Reserve Signals

Economic data released Tuesday showed job openings rose to 7.74 million in October, exceeding estimates of 7.49 million.

Investors are also keenly awaiting:

• Powell’s remarks during a panel discussion at the New York Times DealBook Summit.
• The release of the Fed’s Beige Book, providing anecdotal evidence on economic activity.

The 10-year Treasury yield rose by one basis point to 4.2%.

Tech Sector Highlights

Magnificent Seven Stocks Near Buy Points

• Apple (AAPL): Rose 1% and continued to hover near a buy point of 237.49, breaking out of a flat base.
• Nvidia (NVDA): Hovered below a buy point of 140.76.

Meta Platforms (META) Breakout

• Meta Platforms broke out of a flat base, surpassing its 602.95 buy point.
• Volume was 27% above average, and its Relative Strength Rating climbed to 87.
• Meta’s position above its 50-day moving average indicates potential momentum.

AI and Tech Stock Movers

Janus Therapeutics (JANX)

• Shares soared over 50% on “unprecedented results” from its prostate cancer treatment trial, breaking past a 58.06 buy point from a cup-with-handle base.

Credo Technology (CRDO)

• Shares skyrocketed 40% to an all-time high after reporting 7 cents per share earnings, up 600% year-over-year, with a 64% rise in sales.
• Analysts at Mizuho raised the stock’s price target from 49 to 70, citing strong AI-driven tailwinds.

Zscaler (ZS)

• Fell 3% despite beating expectations with sales of $628 million and earnings of 77 cents per share.

Earnings Preview

Marvell Technology (MRVL)

• Set to report after market close with expected sales growth of 3% to $1.5 billion, and earnings declining by 1% to 41 cents per share.
• Analysts noted Marvell’s increased focus on custom chips for Amazon (AMZN) and raised the price target from 90 to 108.

Salesforce (CRM)

• Slipped 0.5% ahead of its earnings report. Salesforce’s recent foray into autonomous AI agents may play a significant role in the discussion.

Tesla’s China Deliveries Decline

Tesla (TSLA) dropped 1% after reporting 79,000 vehicle shipments from its Shanghai factory in November, bringing October and November totals to 147,000 units, down 5% year-over-year.

Additionally, Tesla CEO Elon Musk’s 2018 pay package was rejected for the second time by a Delaware court, despite shareholder approval.

Broader Market Observations

• Gold prices declined 0.6%, settling at $2,635 per ounce.
• Crude oil prices held steady near $68 per barrel.

As the markets navigate mixed trends, tech and AI stocks are leading gains, while broader indices display caution ahead of pivotal Federal Reserve updates. Investors should watch for Powell’s comments, Beige Book insights, and further developments in AI and tech earnings.