The Dow led the way with a 0.2% gain, while the Nasdaq and S&P 500 edged slightly into positive territory. Volume fell modestly across the board vs. the same time Monday.
Among the Dow industrial stocks in the stock market today, Caterpillar (CAT) paced the advancers with a 2.3% gain after being upgraded to the Conviction Buy list at Goldman Sachs (GS). Shares are consolidating under the 50-day moving average as the machinery company builds a flat base with a 99.56 entry.
On the downside, Cisco Systems (CSCO) fell near 1%. Shares are testing the 50-day line for the first time since a Feb. 14 flat-base breakout above a 32.05 buy point. Cisco was initiated with a hold rating at Berenberg early Tuesday.
Among other analyst actions, two leading tech stocks received downgrades, sending them lower on Tuesday morning. Nvidia (NVDA) dropped more than 6% on its way back down through the 50-day. The graphics chipmaker was downgraded to underweight by Pacific Crest on concerns about market saturation and a possible pause in the company’s data-center business this summer.
Google parent Alphabet (GOOGL) declined 0.6% after BMO Capital downgraded the internet search company to market perform, while lowering its price target to 880 from 1,005. BMO Capital believes Amazon.com‘s (AMZN) advertising business could pose a significant threat. Amazon was named a new “top pick.” Shares of Amazon rose nearly 1% and toppled the 900 mark as gains continued to pile up from a recent bounce from the 50-day line.
Among other leading stocks, Tesla (TSLA) surged 1.4% to surpass the 300 price level for the first time ever. Shares are extended from their 287.49 cup-base buy point.
Action within the IBD 50 was mostly muted in midday trading. On the upside, Cirrus Logic (CRUS) moved up 3.7% as it continued to rally up the right side of a cup-shaped base. If no handle forms, the buy point would be 64.26. Earnings growth jumped 128% in the most recent quarter.
On the downside, China-based companies found themselves at the bottom of today’s performers ahead of President Trump’s meeting with Chinese President Xi Jinping later this week. Weibo (WB) dropped 3.1%. Momo (MOMO) and NetEase (NTES) both declined more than 2%, and Alibaba (BABA) traded 0.6% lower.
Nvidia Downgraded; Shares Undercut Key Support Level
Alphabet Downgraded On Amazon Advertising Momentum