The Dow Jones Industrial Average fell as Apple (AAPL) stock continued to dip. The White House warned of a recession of Congress to extend the debt limit. Tesla (TSLA) was holding up after CEO Elon Musk praised the firm’s China rivals.
The Biden administration has warned of financial crisis if Congress fails to fail to raise the debt ceiling.
President Joe Biden has been trying to make a deal with Republicans over raising the $28.5 trillion federal borrowing limit. The Federal government will shut down if negotiations are not successful.
“Economic growth would falter, unemployment would rise, and the labor market could lose millions of jobs,” the White House said in a new fact sheet.
Nasdaq Dips As Small Caps Gain
The Nasdaq was the biggest laggard among the major indexes, falling about 1.1%. Zoom Video Communications (ZM) fared best, rising almost 3%. Moderna (MRNA) lagged most, giving up more than 5%. It slipped as the FDA vaccine advisory committee prepares to enter discussions Friday afternoon about Covid-19 booster shots.
U.S. Stock Market Today Overview
Last Update: 1:28 PM ET 9/17/2021
The S&P 500 also struggled, dipping 0.9%. It is now testing the key 50-day moving average. International Flavors & Fragrances (IFF) lagged most, dropping more than 5%. Thermo Fisher Scientific (TMO) led the upside with a gain of 8%. It was boosted after saying earnings and revenue for 2022 will be much higher than analysts expected.
The S&P sectors were nearly all negative, with only health managing to make progress. Technology and and materials were the worst laggards. Steel stocks were melting, with the VanEck Steel ETF (SLX) giving up 4%.
Small caps were faring best, but the Russell 2000 still posted a 0.5% loss.
Growth stocks were having a tougher time, with the Innovator IBD 50 ETF (FFTY) down 0.3%.
Dow Jones Today: Apple Stock Falls Again
The Dow Jones Industrial Average was faring the best out of the major indexes, but still gave up about 0.5% at around 2 p.m. ET.
Apple was among the losers, falling nearly 2%. It was struggling amid reports Apple Card owners are having problems ordering the forthcoming iPhone 13.
The credit card, introduced in 2019, lets users get up to 3% in cashback rewards when they buy Apple products.
Microsoft stock was another laggard on the Dow Jones today, also falling nearly 2%. It remains well extended past a 263.29 buy point.
Tesla Stock Gains As Elon Musk Praises China Rivals
Tesla stock was showing resilience after Tesla CEO Elon musk tried to charm China by praising its automakers at its World New Energy Vehicle Congress.
“I have a great deal of respect for the many Chinese automakers for driving these (EV) technologies,” Musk said according to CNBC.
The Tesla CEO praised Chinese automakers for having some of the best at software, which he claimed will “shape the future of the automobile industry.”
Musk’s appearance comes after the firm was the subject of some negative press in the communist country over the past year.
Tesla made a major move into the China market by opening its Giga Shanghai factory, which is currently used for final assembly of the Tesla Model 3 and Tesla Model Y.
Leaderboard stock Tesla was managing to trade flat, despite the broader negative action. TSLA stock is currently in the buy zone above an alternate entry at 730. A long, deep base is also continuing to form.
These Two Stocks Pass Buy Points
A couple of stocks showed strength by trying to break out, even amidst the negative action.
While it pared gains, the stock’s relative strength line is bending higher. While stock market performance has not been ideal over the past 12 months, earnings performance is good overall.
Group 1 Automotive also tested a new consolidation pattern with a buy point of 182.05.
The automotive retailer is seeing its RS line spike upwards. In addition it boasts strong all-round performance, with earnings a particular highlight.
Big money has been snapping up the stock of late, which is reflected in its Accumulation/Distribution Rating of A-. It also boasts four consecutive quarters of increasing fund ownership.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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