Stocks Fall On Boeing, Software Woes; Intuitive Surgical Breaks Out | Summary and Q&A

TL;DR

Major indexes finished with losses, software sector weakens, Boeing stock plunges, and Intuitive Surgical shows strong breakout.

Key Insights

• 🫰 Major indexes experienced losses, with the Nasdaq and S&P 500 showing signs of recovery while the Dow struggled.
• 📰 Boeing's stock plunged due to negative news and regulatory concerns, highlighting the risks of buying stocks in the midst of scandals.
• 😘 The software sector is weakening, with the IGV ETF's relative strength line at its lowest level since January.
• 😚 Intuitive Surgical showed a strong breakout with accelerating earnings and sales growth, sustaining gains throughout the day and closing at the top end of the range.
• 🧑‍🏭 Sector rotation and technical indicators are important factors to consider when analyzing stock performance.
• 🍰 The Investing with IBD podcast features analysis of potential shorting opportunities with Facebook.

Transcript

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Questions & Answers

Q: Why did the major indexes experience losses?

The Nasdaq and S&P 500 closed down due to negative news and concerns about key levels and potential resistance. The Dow was not able to recover as well as the other indexes.

Q: What caused Boeing's stock to plunge?

Boeing faced negative news related to employee messages suggesting misleading information to the FAA regarding a safety system. This, combined with ongoing regulatory issues, led to a significant drop in stock price.

Q: Why is the software sector weakening?

The software sector, previously strong, is now seeing diminishing growth rates and concerns about future growth potential. High valuations and punishing losses in several software stocks have contributed to the sector's decline.

Q: What contributed to Intuitive Surgical's strong breakout?

Intuitive Surgical showed strong earnings and sales growth, with accelerating figures over the prior quarter. The stock's breakout was supported by high volume and its relative strength line.

Summary & Key Takeaways

• Major indexes experienced losses, with the Nasdaq closing down about a tenth of a percent and the S&P 500 coming off intraday lows.

• Boeing stock dropped almost seven percent in heavy volume due to negative news and concerns about regulatory issues.

• The software sector, previously a top performer, is now weakening, with the IGV ETF's relative strength line falling to its lowest level since early January.

• Intuitive Surgical showed a strong breakout, gaining about seven percent in heavy volume with accelerating earnings and sales growth.