Stock Market Update

[BRIEFING.COM] The stock market continues to exhibit a downside bias. The S&P 500 (-1.0%), Nasdaq Composite (-0.6%), and Dow Jones Industrial Average (-1.5%) trade at or near session lows, dropping further below their respective 200-day moving averages. 

The mega cap stocks are showing some strength, benefitting from buy-the-dip action after recent fallout, but just about everything else has traded lower today. Tesla (TSLA 227.44, +5.39, +2.4%), which plunged 15% yesterday, and NVIDIA (NVDA 108.38, +1.40, +1.3%), which fell 5% yesterday, are standouts from the mega cap space.

Broad based selling elsewhere has all 11 S&P 500 sectors lower with the industrial (-1.8%), health care (-1.6%), and real estate (-1.3%) sectors showing the largest declines.

The downside bias relates to the same themes that have plagued the market in recent weeks: concerns about tariffs and worries about growth and earnings. The former concern was piqued by President Trump's announcement in a Truth Social Post that the tariff on steel and aluminum imports from Canada will be increased to 50% (from 25%), starting tomorrow.

Growth worries, which could translate into lower earnings prospects, relate to disappointing guidance from several airlines and a few retailers. Delta Airlines (DAL 46.08, -4.25, -8.4%), American Airlines (AAL 11.66, -0.83, -6.7%), and Southwest Airlines (LUV 30.60, +2.42, +8.6%) lowered their Q1 revenue outlook.

Dick's Sporting Goods (DKS 198.97, -12.04, -5.7%) and Kohl's (KSS 8.91, -3.13, -26.0%) disappointed with full-year guidance after reporting their quarterly results.

Reviewing today's economic data:

• February NFIB Small Business Optimism 100.7; Prior 102.8
• January JOLTS - Job Openings 7.740 mln; Prior was revised to 7.508 mln from 7.600 mln