Indexes Slide As Trump Ups Tariffs; GE Vernova, Southern Copper, Tenet Healthcare In Focus

0:12Good afternoon, everyone, and welcome to Stock Market Today for Monday, February 23rd. It's Alexis Garcia here, and stocks hit a wall of uncertainty as a new trade battle took center stage today with President Trump imposing a new 15 % across the board global tariffs this following a Supreme Court decision on Friday. Most of the major indices finished in the red. I believe small caps were the only winners today. The Dow suffering one of its worst days in a month. And here with me to help break down everything you need to know about today's market action is IBD's market research director, Justin Nielsen.

0:54Well, Justin, I thought you were done with me. Yeah, well, and vice versa. I think you're the one that's probably gotten the short end of the stick. But yeah, exactly as you said, for as much as we were encouraged by Friday's action, this is the kind of market that as soon as you get encouraged, it dashes your hopes exactly, you know, where they belong. So a lot of that positive action from Friday was absolutely reversed today. But we'll go over a few stocks as well that were looking pretty good, including GE Vernova. We'll also take a look. Hey, there's other metals besides the shiny metals like gold and silver.

1:31There's also copper. So we'll look at Southern Copper and then finish off with a hospital tenant healthcare. You know, how's the saying? Copper is a girl's best friend. Maybe today. Let's just go ahead and quickly check in on the major indexes, the S &P 500 falling more than a percent today, the Dow down 1.7%, the Nasdaq down 1.1%, and the Russell looks like also falling just in 1.6 % here. Let me go ahead and get our charts up because, again, you and Webby were talking Friday and, And, you know, markets were up. We're on SPY here. SPY had regained some of the key levels here of the 15-21 day line, but reversing lower today.

2:19The NASDAQ, you know, in a position here where I know you were talking about this on IBD Live this morning, maybe potentially looking for some sort of follow through. But again, reversing lower here. The Dow also just a big slide today. this one breaking below the 50-day line. So, Justin, give me your thoughts on the market here. And like you said, things start looking good, and then your hopes just get cruelly dashed here. Yes, exactly. So we'll start with SPY. You know, look, this was crossing above the 21 and the 50-day moving average lag on Friday. But one of the things we did emphasize, and we've been emphasizing for a little while, is, you know, one day does not a trend make, and just because it can cross one hurdle doesn't mean that, you know, I know we just finished the Winter Olympics, but I'm going to use Summer Olympics for the hurdles.

3:10Like, there's just not one, right? You have to cross not just the 21-day, not just the 50-day moving average line, but you got to get your low above that. Then you've got to get a trend above that where multiple days can stay above it. And so far, we just haven't really seen all those hurdles getting crossed. We'll get one, and then we basically backtrack. So this was the case in this here where we're up above the moving average lines. And look, we didn't have that much space, right? I mean, all the moving average lines are so tight together because we've been going flat for so long that they're all kind of munched together.

3:44And so, yeah, it's going to be easy to cross all of them on either side above or below. For the NASDAQ, as you mentioned, you know, Mike was talking about it almost looking follow through ish on Friday. but again, you kind of look at the low of that day if that's the case and you really wanna see the market stay above, the index stay above that low, which we did today. It's really a close below that level that gets you concerned but this is certainly not a good look, right? Especially, I haven't checked to see what kind of components of the NASDAQ caused volume to be higher today but we'll look at dollar volume and see if that was higher.

4:26It was higher on Friday, but we'll see if that was the case today. So having distribution right after such a strong day, that's not a good look. So there's a lot about this that isn't looking great. And let's just go over to the Russell 2000 because this has been the strongest index. And, you know, it wasn't too bad while it was being flat here. But now we're, you know, back below that 21-day moving average line and in danger of crossing below the 50-day moving average line. So we did get support there before, just a couple weeks ago at$255.05. So we'll have to see if IWM, that's the iShares version of Russell 2000, the ETF.

5:06We'll see if that can stay and whether or not that 50-day moving average line can provide some support here. And I know we're going to be talking about copper later, but let's just take a look at GLD. That's the Spider Gold Shares ETF, this one rising 2.7 % today, Justin. Yeah. So for as much as we were bemoaning that big drop after, you know, what looked like some parabolic action earlier in January, this is this is where the money is still shifting to. And SLV, which even had a bigger climactic move, that was also having a very strong day. Now, it's got a lot more room to go before it takes out its highs.

5:45But, you know, five percent gain today certainly does. You know, it certainly helps. Right. But I mean, remember, that day that it was down, crossing below 100, that was down 30%. I mean, I think it closed down 28%, but it was down 30 % at one point. And we're going to go ahead and round it to that. So it wouldn't be very abnormal for this to take a while for this to kind of come back. You know, that's typically what happens after you get such a strong move up and when you kind of break very soundly like that. But gold is in a much better position. You could see the destruction just wasn't as fatal there.

6:28and it's already getting back above kind of the high of that bad break and really kind of clearing some areas of resistance. So gold looking pretty good. And GDX, just as a way to look at the gold miners, that was, you know, I mean, that's almost to new highs already. So that was really what stuck out to me as I was looking through what stocks are working today. It was pretty much those shiny metals, the gold miners and the silver miners were really dominating the, the, the green side today. And how about we take a look at XLV? That's the Healthcare Select Spider ETF. This one up 1.1 % today, Justin.

7:08Again, looks like it's breaking a little bit of a trend here, getting back to some recent highs. But what's been going on with healthcare? Well, you know, a lot of times we look at this as defensive. So when the markets do get on shaky ground, this does tend to do better. But this has actually been trending very nicely above its 50-day moving average line for the most part, a couple dips below it. And certainly, as we'll talk about a little bit later, you did have some hospitals really acting nicely, including tenant healthcare. I should mention, I do have a position in XLV myself. But yeah, this is kind of setting up to be a nice flat base.

7:47And ETFs, look, they're still showing some attraction for me because they have the lower ATR, that's average true range. They're not quite as volatile and it allows me to hold things a little bit better. I feel like this is a market where you could easily overtrade and be on the wrong side of things because if you're buying on strength, it seems like the strength, you know, lasts for two days and then it kind of reverses. And if you are selling on weakness, then that seems to only last for a couple days too before it turns around and starts moving again. So again, that's kind of the nature of a choppy market.

8:23It can be very tough to navigate. So I'm trying to find some positions that I can kind of hold through a little bit, not get too panicked when they come down because they're not going to come down that much. And I don't get overly excited when they're up unless they are really trending up nicely. All right. Well, how about we also look at XLP? This is the Consumer Staple Select Spider ETF. Again, we talked about maybe some defensive areas here, Justin, this one up 1.3 % today. Yeah. I mean, again, if you're looking where the strength was today, it wasn't really in the areas that you would want to see it.

9:02Now, XLP has had the benefit of Walmart really, you know, kind of putting this up. You know, Walmart is a very high weight in the XLP. And I mean, that had a good day today, up over two and a quarter. But it's generally not a good thing when you're seeing staples leading the market in terms of your sectors. But that was certainly the case today. And you know what? Let's go ahead and just, if we're going to look at some of the worst, let's take a look at IBIT real quick because Bitcoin's still suffering. I mean, this has just been going down and it didn't undercut the lows at 3530. But I mean, it's right there.

9:40This is down almost 50 % from its highs. So that could be having an effect on the market, kind of a risk off atmosphere. But frankly, if the, you know, this is something that Scott St. Clair was sharing this morning on IBD Live as well. You know, with IBIT down this much, you would almost expect the NASDAQ to be down more. So maybe it's actually kind of showing a resilience that the NASDAQ isn't down nearly as much. But also let's take a look at IGV because the software area is still just really getting pummeled. That did undercut recent lows, that 79.27. And again, this is just one of those areas that has been really out of favor.

10:23I think that there were the warning signs, certainly in October, as you crossed the 50-day moving average line and then got turned away from the 50-day line back in December. And it's really just been kind of ugly since. Yeah, let's go ahead and take a look at XLF, Justin, to wrap this up. That's the Financial Select Spider ETF. this one again reversing lower today down at 3.4%. Yeah. And so again, not a great look. The financials, whether you look at the big banks, the regional banks, it was kind of a lot of ugliness there. And this is one of the reasons why the Dow was maybe taking a hit because JPMorgan Chase, JPM is the ticker symbol there, that has been, you know, kind of suffering lately.

11:06And that had a pretty, pretty drastic move down over 4%. And again, below the 200-day moving average line now, first closed below the 200-day moving average line in quite a while, and really just can't get back above that 50-day moving average line. So that was certainly weighing on the Dow Jones industrial average today. So there's a lot of noise about AI, but time's too tight for more promises. So let's talk about results. At IBM, we work with our employees to integrate technology right into the systems they need. Now, a global workforce of 300 ,000 can use AI to fill their HR questions, resolving 94 % of common questions.

11:46Not noise. Proof of how we can help companies get smarter by putting AI where it actually pays off, deep in the work that moves the business. Let's create smarter business. IBM. All right, well, let's go ahead and get to some individual stocks. Maybe we'll see some better things happening here. Let's start with GEV. That's GE Renova. This one up almost two tenths of a percent today. Justin, again, getting back to some of these recent highs here around the 846 level. Yeah. And this is a leaderboard stock. You know, I like that this has been kind of just trading tight through all this. It hasn't really been losing much ground.

12:26If you take a look at the weekly chart, you can see, I mean, yes, it is kind of extended from that buy point. But the fact that it's holding tight here and kind of refusing to go down, I think does bode well for the stock. Now, you also have XLU, one of the sectors that I should have mentioned. That was another of those defensive areas that was doing fairly well today. and you know there is kind of that AI adjacent play here with XLU where a lot of these companies because there is so much demand for power and energy by these data centers this is kind of a play there and GE Renova certainly does play into that so very very strong action the fact that this has been able to hold above its 10-day moving average line is pretty impressive and on a day like today, you know, I often will just look at things that are able to close at their highs or in the upper part of their ranges.

13:21And GE Vernova stuck out to me in that way. So even though it wasn't up very much, the fact that it was not down and that it was able to close well, I think speaks highly for how GE Vernova is looking. All right. How about we take a look at copper with Southern Copper? That's ticker SCCO. This went up 3 % today, Justin. Getting above this 200 level. And again, another one here, not too far off some recent highs. Yeah, absolutely. And again, it did have its kind of shake, you know, a pretty dramatic break, along with a lot of the metal stocks just a couple weeks ago. But the recovery is looking pretty good here.

14:02And I do have a small position in this one myself. But let's go to the weekly chart. This has just been trending very nicely above that 10-week moving average line. Had one test, you know, which actually could have been a buy opportunity and, you know, maybe another test here last week, but really kind of shaping up nicely. And as you mentioned, you just kind of can see a very clear right off the highs of those last four weeks, just a short little downtrend. And it looks like it's just kind of crossing that downtrend today, you know, so that could provide you with an early entry. Again, it is sticking up there.

14:39So not your traditional entry that we would normally look at, but certainly something that could prove actionable. And I got to give credit to Scott St. Clair because he did mention this one on IBD Live. This was his stock of choice. So yeah, it looks pretty good. So it's not just the gold and silver, you know, as you mentioned, copper might be a girl's best friend as well. Yeah. And this industry group performing really well on number five of 197 that IBD tracks. Let's go ahead and wrap up with a look at Tenant Healthcare. That's ticker THC. This one up 1.7 % today. And another one here, Justin, that seems like it's trying to hold some of these recent levels here as the market has been volatile.

15:24Yeah. And I really like when something has such a strong move on earnings. I mean, it kind of broke out so strongly. It was very difficult to get that at the 211 pivot point from that double bottom. but you know when it was up you know at you know by the time the day was done it was up 17 percent that can be very difficult because you know with it sticking straight up like that you could easily see this come down 10 percent and still look very normal that would just be kind of a test of its pivot area so what I like to do sometimes is just to wait and see what happens in this case it had a nice follow-up but it's been really trading tightly so even today where a lot of things were coming down, most of the market was coming down.

16:08This was holding up very nicely. It did close at the top of its range. So again, that screen that I run looking at daily ranges, you know, sorting by the top ones, this immediately came up. And you look at the weekly chart on this and the fact that it's just holding those gains so tightly says, OK, look, people are comfortable with it at this higher valuation. And this can be a point where institutions can actually do some quiet accumulation. You know, anyone that's doing any selling, you know, getting rid of shares, taking some profits, they can kind of scoop that up. And, you know, once that selling is done, this can really, you know, potentially make a move.

16:46Now, again, hospitals do tend to be a little bit more on that defensive side. So you could easily see if the money starts shifting back to growth areas, this might, you know, be an area that gets sold. But right now, this tight action is appealing and it's not like this has, you know, bad numbers. The EPS rating on this is 93. The relative strength line at highs, 88, not bad rating right there. And the composite rating is a very decent 92. You scroll down over to the left-hand side and you look at some of these numbers. Those are some solid numbers behind this in terms of its EPS growth and its revenue growth is a little bit lackluster with the single digits.

17:29But right now I'm looking at that EPS growth and more than anything, the chart and how tight it's acting. Yeah, and as you mentioned, it looks like accumulation distribution rating A - looking pretty good there. Justin, thank you so much for your insights today. And talk to us about your podcast guests this week. I know Ed last week was mentioning a recent IPO that he might get into. So we'd love to hear about that. Well, Greg Morton, who is he was a longtime IBD meetup leader. He does his own thing where he really tries to educate investors. He shares on a regular basis kind of his coloring book of the market.

18:11That's what he shared last time he was on the podcast. This time he's going to do a little bit of a deeper dive into IPOs. And one of the stocks he's probably going to feature, I would imagine, is Medline, MDLN. This is something that David Hapman Chung put on my radar. And yeah, it's been looking good. I do have a position in it. But yeah, that's one of the things that we're going to be talking about and kind of, you know, putting it through its paces of what Greg looks at as solid IPO action. All right, Justin. Well, we'll be looking forward to that. Thanks again for all your great commentary today.

18:46Thank you. And that wraps it up for us. We'll be back tomorrow morning with more market analysis starting with IBD Live. You can head on over to investors.com slash IBD Live for all the details there. And of course, we'll be back here tomorrow right after the close. See you then.

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