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Dow Jones Closes Lower, Nasdaq Leads Downside; Chip Equipment Stocks Trade In Buy Zones Amid Sell Off

The Dow Jones Industrial Average fell in today’s stock market and extended its losses from the prior week. The Nasdaq also traded lower and led the markets on the downside.




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Dow Jones In The Stock Market Today

The Nasdaq composite lost 2.2%. The Dow Jones lost 1.8%, while the S&P 500 fell 1.7%. The Russell 2000 index closed 2.3% lower. Early data showed lower volume on the NYSE and higher volume on the Nasdaq vs. the close on Friday.

The major indexes traded lower Monday amid the threat of a possible default by a major Chinese real estate company. Additionally, ongoing debates over the still unresolved debt limit in Washington weighed on the indexes.

Chinese property developer Evergrande Group is the world’s most indebted property developer. Last month, it warned of a possible default on its obligations of more than $300 billion to creditors. To make matters worse, an interest payment deadline for its offshore bonds comes on Thursday. Stocks fell in Asia, Europe and the U.S. The Vix, a measure of volatility, reached its highest level since May.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 33970.80 -614.08 -1.78
S&P 500 (0S&P5) 4357.64 -75.35 -1.70
Nasdaq (0NDQC ) 14713.90 -330.07 -2.19
Russell 2000 (IWM) 217.24 -5.13 -2.31
IBD 50 (FFTY) 49.22 -1.36 -2.69
Last Update: 4:26 PM ET 9/20/2021

The S&P sectors were all trading lower on Monday, with utilities and real estate showing the narrowest losses. Financial stocks were among the worst performers, with the Financial Select Sector SPDR Fund (XLF) losing 2.3%.

Growth stocks fell hard on Monday, after outperforming last week. The Innovator IBD 50 ETF (FFTY) lost 2.7% and is now back below a 50.06 buy point after gaining support at the 21-day exponential moving average last week.

Stocks underperforming in the index included Doximity (DOCS) and Global-e Online (GLBE), which lost over 10% and 8%, respectively.

Inside the Dow Jones, Apple (AAPL) was among the worst performers, falling over 2%. Shares lost support at the key 50-day moving average last week, which is a sell signal. The tech giant has been struggling even after the release of its new iPhone last week.

Meanwhile, Nike (NKE) also traded lower with a drop of roughly 1.3% after a couple straight days of declines. Shares are trading below the lower edge of a new flat base with a 174.48 buy point and are also 12% below this proper entry. The stock also recently dropped below its key 50-day and 200-day lines in August, a bearish sign.

Nike plans to release its fiscal first-quarter 2022 results on Sept. 23. According to IBD data, the athletic shoe and apparel giant is expected to show year-over-year earnings growth of 18% to $1.12 per share. Sales are seen rising 18%, to $12.46 billion.

Chip Stocks Scoring Breakouts Amid Sell-Off

A few growth stocks still managed to score breakouts and/or trade in buy zones on Monday, including Brooks Automation (BRKS) and Entegris (ENTG).

Brooks Automation scored a breakout from a cup base on Monday. The ideal buy point was at 104.41. The stock closed slightly below the buy area. Shares rose nearly 9% in heavy volume. The stock belongs to the semiconductor equipment industry group, which has been showing strength recently and ranks No. 46 out of the 197 groups IBD tracks.

Meanwhile, fellow semiconductor equipment stock Entegris also traded inside a buy zone on Monday. Shares broke out last week from a flat base with 126.51 buy point. The stock remained inside the buy area Monday, despite falling roughly 2.5%. Entegris shows a near-perfect Composite Rating of 98 and a rising RS line.

Follow Rachel Fox on Twitter at @foxonstocks for more Dow Jones and market commentary.

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