Wall Street Today: DJIA Closes at Record as Investors Favor Non-Techs Over Big Techs Like CRWV and NVDA

Jerry Kronenberg joined discussion · Nov 11 15:39

The Dow Jones Industrial Average closed at a record high Tuesday as non-tech blue chips like Nike, Merck and Amgen gained ground, while the Nasdaq Composite eased amid fresh weakness for CoreWeave, Micron, Nvidia and other tech giants.

The $Dow Jones Industrial Average (.DJI.US)$ rose 559.33 points (1.2%) to a 47,927.96 best-ever close. The $S&P 500 Index (.SPX.US)$ likewise added 14.18 ticks (0.2%) to 6,846.61.

However, the tech-heavy $Nasdaq Composite Index (.IXIC.US)$ shed 58.87 points (0.3%) to 23,468.30.

The Nasdaq eased amid renewed declines for several tech darlings that have swung up and down in recent days after $Palantir (PLTR.US)$ and $Uber Technologies (UBER.US)$ fell sharply last Tuesday despite reporting better-than-expected quarterly earnings.

The declines spooked some investors, who wondered if Big Tech stocks had simply gotten too expensive to rise further even on good news. Many major tech names have been swinging up and down ever since.

$CoreWeave (CRWV.US)$ led the decliners Tuesday among Big Techs, sinking 16.3% after the cloud-infrastructure firm's worse-than-expected full-year revenue guidance outweighed a Q3 revenue beat.

Other Big Techs to see renewed declines Tuesday amid ongoing days of up-and-down trading included $Micron Technology (MU.US)$ (off 4.8%), $NVIDIA (NVDA.US)$ (3% weaker) and $Oracle (ORCL.US)$ (1.9% lower).

Meanwhile, the Dow-30 and S&P 500 rose as investors switched money from tech giants to non-tech stocks -- especially medical-related ones.

Non-tech big caps to gain ground included Dow component $Merck & Co (MRK.US)$, which rose 4.8% in part on good test results for a cholesterol pill. Other DJIA members to see noteworthy gains included $Amgen (AMGN.US)$(4.6% better) and $Nike (NKE.US)$ (up 3.9%).

Macro

Wall Street appeared to take solace in the fact that the U.S. government's 42-day-old shutdown seemed Tuesday to be heading to a conclusion.

The U.S. Senate approved a deal late Sunday to reopen the government, with the House expected to vote on the same agreement Wednesday afternoon. Lawmakers aim to resume full government functions some time this week.

Still, uncertainty surrounding the government shutdown and Big Tech's issues led to something of a risk-off mood on Wall Street.

That drove cryptocurrencies lower. $Ripple (XRP.CC)$shed 5.9% to $2.41 as of shortly before 3:30 p.m. ET, while $Ethereum (ETH.CC)$ gave up 3.5% to $3,447.75 and $Bitcoin (BTC.CC)$ lost 2.8% to $103,111.77.

Moo-vers

The "Magnificent Seven" stocks mirrored the broader market and ended Tuesday's session mixed.

Four Mag-7 stocks gained ground -- $Apple (AAPL.US)$(up 2.2%), $Microsoft (MSFT.US)$ (0.5% better), $Alphabet-A (GOOGL.US)$ (0.4% stronger) and $Amazon (AMZN.US)$ (0.3% better).

However, three Mag-7 names ended the day weaker: $NVIDIA (NVDA.US)$ with its aforementioned 3% decline, followed by $Tesla (TSLA.US)$(off 1.3%) and $Meta Platforms (META.US)$ (0.8% weaker).

Elsewhere on Wall Street, Tuesday's other noteworthy percentage decliners included:

-- $Beyond Meat (BYND.US)$, off 9%. The meat-alternatives firm fell on a wider-than-expected Q3 loss and poorly received Q4 guidance.

-- $Sea (SE.US)$, down 8.2%. The Singaporean Internet and mobile-Web giant fell on disappointing Q3 results.

-- Select crypto-related stocks, which dropped on weakness for cryptocurrencies. Decliners included $Applied Digital (APLD.US)$ (off 9.1%), $Strive (ASST.US)$ (down 8.1%), $Circle (CRCL.US)$ (5.6% weaker), $IREN Ltd (IREN.US)$ (4.6% lower) and $Bitmine Immersion Technologies (BMNR.US)$ (which shed 3.8%).

Conversely, Tuesday's major percentage gainers included:

-- $BigBear.ai Holdings (BBAI.US)$, up 6.1%. The AI-powered national-security-solutions firm rose on better-than-expected Q3 results.

-- Select medical-related stocks that rallied on investors shifting from tech to non-tech names. Health-insurance-related stocks also bounced after falling Monday on a White House proposal to send subsidies for so-called "Obamacare" insurance policies directly to consumers instead of insurers. Winners included $Novo-Nordisk A/S (NVO.US)$ (up 7%) and $Oscar Health (OSCR.US)$ (1.6% stronger).

Wall Street Today: DJIA Closes at Record as Investors Favor Non-Techs Over Big Techs Like CRWV and NVDA

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