The major indexes came off session lows Tuesday afternoon, while Amazon.com (AMZN) stock made history by climbing to a $1 trillion market capitalization.
Amazon.com, the second-largest stock on the Nasdaq, rose to 2,050.50 in late-morning trading, enough to register $1 trillion in valuation. Amazon shares traded at 2038.33 in the afternoon, trying for a seventh straight gain.
But Facebook (FB), another major Nasdaq component, was down nearly 3% in active trading. Reports said Amazon plans an online ad platform that would challenge Facebook and Alphabet’s (GOOGL) Google. Also MoffettNathanson downgraded the stock to neutral from buy, reports said.
Alphabet shares fell 1.5%, touching the 50-day moving average. The stock needs to bounce off that line if it’s to continue forming a flat base.
Meanwhile, top executives from Facebook, Twitter (TWTR) and Google are due to testify before the U.S. Senate Wednesday on privacy protection, Russian election meddling and other issues.
Amazon’s news was a bright spot in a day of mainly negative action. The Nasdaq composite was off 0.4% and the S&P 500 0.3%. (For updates on this story and other market coverage, check Stock Market Today.)
The Dow Jones industrial average lost 0.2%. Nike (NKE) was the poorest Dow component, down 2.5% in heavy trading as shares dipped to the 10-week moving average and below the 81.10 buy point of a breakout Aug. 9. Nike’s new ad campaign features controversial former NFL quarterback Colin Kaepernick.
Dow component Verizon (VZ) gapped down to a loss of 2.5% after two analysts downgraded the telecom giant.
Volume on the NYSE and Nasdaq was higher compared with the same time on Friday. Declining stocks led advancers by 2-1 on the NYSE and by 12-7 on the Nasdaq.
Semiconductors provided some strength for the Nasdaq. The Philadelphia semiconductor index was up 0.2%.
Several high-rated stocks climbed past buy points, but few showed sufficient energy in their moves. Dunkin’ Brands Group (DNKN) was one of the strongest, surging past a 73.59 buy point in heavy trading. The parent of Dunkin’ Donuts climbed to an all-time high, but the relative strength line hasn’t made a new high. If it does, the RS line should make a new high as well.
Leading stocks were holding up relatively well. The Innovator IBD 50 ETF (FFTY) was nearly unchanged.