Stock market today: Dow pares gains to close lower as slump in health care bites – Yahoo Finance

By Yasin Ebrahim
Investing.com — The Dow gave up gains to close lower Monday, as falling health care and energy stocks offset tech strength in tech after Treasury yields slipped amid ongoing expectations that the Federal Reserve will slow its pace of rate hikes.
The Dow Jones Industrial Average slipped 0.34%, or 112 points, the Nasdaq Composite was up 0.63%, and the S&P 500 fell 0.1%
Energy and health care and weighed on the broader market, with the latter hurt by a fall in DexCom (NASDAQ:DXCM), Baxter International Inc (NYSE:BAX), and Regeneron Pharmaceuticals Inc (NASDAQ:REGN), which fell more than 5% after reporting lower sales of its Eylea treatment.
Energy, however, traded lower even as ongoing demand optimism from China’s reopening and a weaker dollar helped push oil prices higher.
The U.S. 10-year Treasury yield slipped – extending its move lower from Friday, when the December jobs report showed cooling wage pressures – helping rate-sensitive sectors including tech flourish, as investors continued to price in a less hawkish Fed.
Fed funds futures showed bets on the peak level of rates slipped below 5% from a week ago.
Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), and Alphabet (NASDAQ:GOOGL) led the gains in tech, while semiconductor stocks were lifted by a more than 5% rise in NVIDIA (NASDAQ:NVDA) following a slew of positive remarks from Wall Street.
Nvidia was named as a top pick by Wells Fargo amid expectations for the chip industry downturn to bottom in the first half of the year. Credit Suisse said Nvidia remained its top pick “on the basis of derisked gaming and catalysts from Grace/Hopper [superchip] this year.”
Broadcom (NASDAQ:AVGO) and Qualcomm slashed gains to end lower after Bloomberg reported that Apple aims to drop the use of Qualcomm (NASDAQ:QCOM) and Broadcom chips in its devices by 2024 and 2025.
Tesla (NASDAQ:TSLA), meanwhile, led consumer discretionary stocks higher to extend its rebound following its plunge to fresh 52-week lows last week.
Neuberger Berman senior research analyst Daniel Flax said Monday he would be a “buyer of Tesla at current levels," describing the EV maker’s business model as “powerful” as it enables new services like self-driving to be delivered.
Cruise stocks were also involved in the heavy lifting for consumer stocks and continued to rack up gains, with Norwegian Cruise Line Holdings Ltd (NYSE:NCLH) and Carnival Corporation (NYSE:CCL) up more than 5% and 2%, respectively.
Lululemon Athletica (NASDAQ:LULU), however, failed to participate in the rally, falling more than 9% after cutting its guidance on margins amid rising costs.
The company expects gross margins to fall 90 basis points to 110 basis points, compared with prior guidance of an increase of 10 basis points to 20 basis points.
In other news, Bed Bath&Beyond (NASDAQ:BBBY) rallied 24% just ahead of the home goods retailer’s quarterly earnings report which is expected to show a loss of $2.38 on revenue of $1.33 billion.
In cryptocurrency news, bitcoin rose more than 1% hitting a more than three-week high, sending crypto-related stocks including Marathon Digital Holdings Inc (NASDAQ:MARA), Coinbase Global Inc (NASDAQ:COIN), and Riot Blockchain (NASDAQ:RIOT) sharply higher.
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(Reuters) -Oil edged lower on Tuesday on expectations that further interest rate hikes in the United States, the world's biggest oil user, will slow economic growth and limit fuel demand. Brent futures for March fell 33 cents to $79.32 a barrel, a 0.4% drop, by 0719 GMT. Both benchmarks climbed 1% on Monday, after China, the world's biggest oil importer and second-largest consumer, opened its borders over the weekend for the first time in three years.
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We are yet to find out what lies in store for the stock market in 2023. However, we do know that the previous year was one of the worst ever, with the S&P 500 putting in its 7th most abject annual performance since 1929. Whichever way you look at it, then, most investors did not enjoy the past 12 months’ market action. One positive takeaway, however, is that the overall bearish trend has driven share prices down across the board and that has left some stocks at levels that are now just too cheap
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The following real estate investment trusts (REITs) all trade below their book value, and each one pays a dividend. If the Federal Reserve ever makes the pivot back to lowering interest rates, REITs such as these may be of interest to patient investors. While the wait continues for a change in the rate environment, an investor continues to receive a dividend. That’s the idea, anyway. It may or may not work out that way, but for those interested, here are the REITs: Medical Properties Trust Inc.
For its part, Berkshire Hathaway has seen its shares outperform the S&P 500. Now, despite the recent underperformance of Apple — Berkshire's largest position — shares of Berkshire Hathaway are trying to break out. Before we dive into the setup, notice how Berkshire stock was hitting all-time highs in late March.
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U.S.-based electric vehicle (EV) company stocks took off today after what had been a relatively rough start to 2023. After the first week of the year, stocks of EV makers Rivian Automotive (NASDAQ: RIVN) and Lucid Group (NASDAQ: LCID) along with charging network company ChargePoint (NYSE: CHPT) were down between 5% and 11%. Lucid and ChargePoint stocks were up 7% and 13.6%, respectively, at that time.
Specialty tech stock Qualcomm (NASDAQ: QCOM) didn't have such a special start to the trading week. Apparently, that customer is none other than Apple (NASDAQ: AAPL). On Monday, Bloomberg reported that Apple will replace third-party components in its iPhones and iPads with its own goods.

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