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Dow Jones Falls As Inflation Fears Rise, Apple Stock, JPMorgan Earnings Weigh

Stocks were mixed midday Wednesday, with the Dow Jones Industrial Average down and the Nasdaq up as traders digested key inflation data and earnings.




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The Nasdaq composite advanced 0.4%, the S&P 500 was flat and the Dow Jones industrials fell 0.4% in the stock market today. Small caps tracked by the Russell 2000 edged 0.1% higher. Volume was mixed, slightly lower on the NYSE but higher on the Nasdaq, vs. the same time Tuesday.

Among exchange traded funds, Innovator IBD 50 (FFTY) rose 0.9%, while the Nasdaq 100-tracking Invesco QQQ Trust (QQQ) climbed 0.4%. The IBD 50 ETF, which tested its 200-day moving average last week, is still trying to regain the 50-day line.

The Labor Department said consumer prices rose 0.4% in September, up from 0.3% in August and above Econoday’s forecast for a 0.3% increase. On a year-over-year basis, the consumer price index rose 5.4%, slightly higher than estimates for 5.3%. The 10-year Treasury yield fell 4 basis points to 1.54%.

Minutes from the Federal Open Market Committee’s Sept. 22 meeting are set for release at 2 p.m. ET.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 34266.21 -112.13 -0.33
S&P 500 (0S&P5) 4350.15 -0.50 -0.01
Nasdaq (0NDQC ) 14523.34 +57.41 +0.40
Russell 2000 (IWM) 221.77 +0.25 +0.11
IBD 50 (FFTY) 47.65 +0.56 +1.19
Last Update: 12:10 PM ET 10/13/2021

The U.S. economy continues to recover from the Covid-19 pandemic, which triggered nationwide lockdowns over a year ago. A resurgence in cases fueled by the more contagious delta variant has recently started to slow down as vaccinations rise.

Cumulative Covid-19 cases worldwide are approaching 240 million, with nearly 4.9 million deaths, according to Worldometer. In the U.S., cases have now topped 45 million with almost 738,000 deaths.

Growth Stocks To Watch

Over in the IBD 50, InMode (INMD) surged 13% in fast trade to extend Tuesday’s 9% gain. Shares are now within 5% of their late September high. On Tuesday, the medical aesthetics firm offered preliminary earnings that topped Wall Street’s Q3 estimates. InMode expects adjusted profit of 53-54 cents per share on $93.5 million to $94 million in sales. That beat analyst forecasts by a respective 49% and 25%, according to a Needham report.

TaskUs (TASK) soared 8% in twice normal trade to rebound off the 50-day moving average line. That marks the stock’s first pullback to the 10-week line since an August breakout past a 35.73 consolidation buy point, according to MarketSmith chart analysis.

Among other IBD 50 winners, Dutch Bros. (BROS), Cloudflare (NET) and Datadog (DDOG) were up more than 4% each.

But Callon Petroleum (CPE) and Dynavax Technologies (DVAX) gave up over 3% apiece. Callon briefly cleared a 60.61 buy point of a deep cup base on Monday, but has retreated since. If it breaks out again, the buy range would go up to 63.64. The oil explorer has a highest possible Composite Rating and Relative Strength Rating of 99.

Dow Jones Movers

American Express (AXP), down 4% in above-average volume, was the biggest Dow loser. The stock is still working on a cup with handle with a 178.90 buy point. It’s about 6% away from the entry.

JPMorgan (JPM) fell more than 2% in heavy trade to test its 50-day line. JPMorgan stock slipped below a 163.93 buy point of a cup with handle. Early Wednesday, the bank reported better-than-expected Q3 earnings, kicking off a big week for financial earnings. It earned $3.74 a share on revenue of $30.44 billion, well above FactSet estimates for $2.93 a share on revenue of $29.8 billion.

McDonald’s (MCD) and Apple (AAPL) gave up more than 1% each.

Apple, down 1.3%, is on track to extend its losing streak to three sessions. Shares have been stuck below the 50-day line for nearly a month. The stock is currently shaping a flat base with a 157.36 buy point, according to MarketSmith. Apple will likely have to cut its 2021 iPhone production goal of 90 million handsets by up to 10 million handsets due to extended chip shortages, Bloomberg reported.

Salesforce.com (CRM) led the upside on the Dow with a 1.3% gain. Amgen (AMGN), 3M (MMM) and Johnson & Johnson (JNJ) added nearly 1% each.

Follow Nancy Gondo on Twitter at @IBD_NGondo

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