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Markets Mixed; Leaders Crumble: Tesla, Nvidia Fall Sharply

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While the Nasdaq, down 0.7%, showed substantial weakness in early trading, the S&P 500 traded down 0.1% and the Dow Jones industrial average moved higher, up 0.1%.

The majority of the damage came within the tech sector.

Volume on the NYSE rose moderately, but fell on the Nasdaq vs. the same time Wednesday heading into midday trading.

Action within the Dow was mixed. Financials and industrials lagged among the blue chips, while energy and medical outperformed.

On the upside, Chevron (CVX) and Exxon Mobil (XOM) moved up about 1% each as the price of crude oil jumped 1.5%. Johnson and Johnson (JNJ) rose 0.8%.

General Electric (GE) fell 1% and Caterpillar (CAT) went down 2.5%.

Leadership within the market experienced a tough time in the stock market today.

Longtime market leader Nvidia dropped 9% after being downgraded by two separate research firms: Nomura Securities and BMO Capital. Both cited valuation concerns in their analysis.

Tesla sank 6% after reporting mixed Q4 results after the close on Wednesday. While beating on revenue estimates, the electric automaker missed on its bottom line. The company also said CFO Jason Wheeler was stepping down.

Inphi (IPHI) fell 6% after reversing from new highs on Wednesday. Volume is tracking over 100% above average in today's trade.

Among international leadership, Alibaba fell further under its 104.67 cup-with-handle buy point after breaking out Wednesday. Volume was heavy on the breakout day, but closed below the buy point.

NetEase (NTES) sold off 5% in heavy volume after soaring to new highs Wednesday. The Chinese gaming company remains 13% above a 257.78 cup-with-handle buy point.

Weibo (WB) crumbled 13% despite its upbeat Q4 earnings release after the close Wednesday. After being up as much as 11% from its 52.59 double-bottom buy point, shares have now given back all of those gains, triggering a sell signal. The stock is now down almost 5% from that entry. Sina (SINA), majority owner of Weibo, also fell over 10% after reporting its own quarterly results.

However, there was one bright spot amid the carnage.

Square (SQ) jumped 14% on its way to a breakaway gap above a 15.59 flat-base entry. Volume surged to more than 2,000% above average. The payments firm posted upbeat Q4 results.

IBD 50: Leaders Fall, Few Bright Spots

The IBD 50, a screen of leading growth stocks, was predominantly negative heading into midday trading. Only four stocks traded in positive territory.

On the upside, TAL Education[ticker symb=TAL] shrugged off the general market's weakness to rise 1.6%. Shares remain about 9% above a 78.26 double-bottom entry.

On the downside, there were seven components down more than 4%. InterDigital (IDCC) led decliners with a 16% plummet after it reported a soft outlook for Q1.

Shares triggered two key sell signals: 8% down from the 98.10 buy point and a heavy-volume break of the 50-day line.

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