MARKETS: Nasdaq closes 0.97% down on tech weakness — YF Premium is bullish on Lowe's (LOW)

Yahoo Finance's Jared Blikre joins Jen Rogers to break down the day's price action in stocks as well as a long in Lowe's Companies (LOW), a Yahoo Finance Premium Investment Idea. (Sign up for a free 14-day trial at yahoofinance.com.)

Video Transcript

JEN ROGERS: Welcome back to The Final Round. Three majors down today, but the rest still eking out a small gain here. Let's go to Jared Blikre with the charts. Jared.

JARED BLIKRE: Yeah, the Dow was down about 100 points and we can see the NASDAQ is off 1%. There was a second-- tech was the second-worst-performing sector next to energy. The S&P 500 down a tenth of a percent, and you can see these indices closing by their lows. As you noted, the Russell 2000 just barely in the green, the out performer of the day.

We've been taking a look at the longer-term charts and we're expecting a breakout one way or another, but we haven't seen it yet. Maybe tomorrow.

Let's take a look at a Yahoo Finance Premium Idea of the Day,. And we are looking at Lowe's Companies after just reporting their earnings, and we have a fundamental analysis by Argus Research. They are bullish, and they are looking for a-- they are raising their price target to $140. That is a 17% increase from the current levels. That would be somewhere up here, can't even chart it.

And if you're looking to protect yourself, you would probably want to put a stop below the 200-day moving average, at $109. This is a long-term opportunity, but it does present a risk-reward ratio of about 1:2.

So just some notes on what Argus is saying about Lowe's, why they like the trade. Management said that, "the strong first-quarter sales momentum has extended into May as consumers continue to focus on their homes, something that we would find to be intuitively true. The first-quarter performance supports our view that Lowe's is well-positioned to deliver future post-pandemic earnings growth. We believe that Lowe's shares stand out for diversified investors who are looking for exposure to discretionary retail at financially strong companies."

You can sign up for a free ti-- trial, a 14-day test drive of Yahoo Finance Premium at our website, yahoofinance.com. Jen.

JEN ROGERS: Interesting stuff. Jared Blikre.