Indexes Dip As House Passes Tax Bill; 10-Year Treasury Yield Jumps

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Major stock indexes ended with mild losses Tuesday as selling was most concentrated in technology and small-cap names.

[ibd-display-video id=3033048 width=50 float=left autostart=true] After seven gains in the past nine trading sessions for the Nasdaq composite, the index gave back 0.4% after briefly topping the 7000 level Monday. The Russell 2000 small-cap index lost 0.8%. Selling was lighter in the Dow Jones industrial average and the S&P 500. The S&P 500 eased 0.3% and the Dow slipped nearly 0.2%. Preliminary data showed volume on the Nasdaq and NYSE coming in lower than Monday.

Money flowed into bonds, lifting the 10-year Treasury yield higher by 6 basis points to 2.46%. Interest-rate-sensitive areas of the market like REITs and utilities lagged.

Walt Disney ( DIS ) and Wal-Mart ( WMT ) outperformed in the Dow with gains of close to 1%. Apple ( AAPL ), meanwhile, lagged after Nomura Instinet downgraded the stock to neutral from buy and lowered its price target to 175 from 185. Shares of Apple lost 1% to 174.54. Apple cleared a 176.34 buy point Monday, but volume was only slightly above average.

After the close, FedEx ( FDX ) edged higher after reporting earnings. Results from recent new-issue Stitch Fix ( SFIX ) didn't go over very well, at least in the early part of after-hours trading. Shares were down as much as 11%.

In the stock market today , it was another session of volatile trading in the Bitcoin space after the Securities and Exchange commission suspended trading in OTC name Crypto Co. (CRCW), citing concerns about murky financials and "potentially manipulative" stock transactions. Shares jumped 12% Monday to 575 on volume of 1,100 shares.

Other Bitcoin-related names were a mixed bag. Riot Blockchain (RIOT) gained nearly 6% to 38.60, while Overstock.com (OSTK) lost 3% to 73.62. Overstock.com was one the first companies to start accepting Bitcoin as payment. Now the company is considering selling its retail e-commerce business and focusing on its investments in blockchain, the technology behind Bitcoin and other cryptocurrencies.

Meanwhile, Bitcoin Investment Trust (GBTC) plunged 24% early but halved its loss by the close, falling 12% to 3,034.

Inside the IBD 50 , managed care firm Centene (CNC) extended gains after a nice bounce off the 50-day moving average. Shares rose 3% to 100.90. It's just above a 98.82 buy point.

In the energy space, Argentina-based natural gas firm Trasportadora de Gas del Sur (TGS) added 2% to 23.15. It's still within buy range after a breakout from a consolidation with a 22.27 buy point.

In earnings news, Darden Restaurants (DRI) and Navistar (NAV) were big winners. Shares of Darden surged 7% to 96.68. Headed into today, the Olive Garden and LongHorn Steakhouse parent was still in buy range from an 88.67 cup-with-handle buy point. Navistar, meanwhile, gapped up out of a flat base with a conventional entry at 45.57. Shares closed at 54.30, up 7%.

FactSet Research Systems (FDS) wasn't so lucky. Shares gapped down on earnings, falling 8% to 187.49. The weak price action was a sell signal for those who bought after the last breakout in late September.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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