Dow Jones Gains; Donald Trump SPAC Dives; Warren Buffett Stock Melts

The Dow Jones Industrial Average moved higher while the S&P 500 rallied late. Oil stocks such as Chevron (CVX) bubbled higher as President Joe Biden opted to release 50 million barrels of oil. The Donald Trump SPAC Digital (DWAC) plunged.

Software stocks were being beaten back amid the bearish action. These included Snowflake (SNOW), a data analytics play backed by Warren Buffett.


Nasdaq Lags As Growth Stocks Get Mauled

The tech-heavy Nasdaq continued to fall away from recent record highs. While it cut some losses during the final hour of trading, it still fell 0.5%. Zoom Video Communications (ZM) led the downside. It fell just under 15% as the market reacted negatively to its latest earnings report.

The S&P 500 managed to rally late and close with a modest gain of 0.2%. Dollar Tree (DLTR) led with a gain of more than 9% while Best Buy (BBY) fared worst with a drop of over 12%.

The S&P sectors finished mostly positive despite the mixed action, with energy and financials faring best. Technology and consumer discretionary were the worst performers.

Small caps struggled despite the progress of financials. The Russell 2000 did manage to rally off lows though, closing down 0.2%.

It was growth stock investors who really felt the wrath of the bears. The Innovator IBD 50 ETF (FFTY), a bellwether for growth stocks, tumbled about 1.6%.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 35813.74 +194.49 +0.55
S&P 500 (0S&P5) 4690.72 +7.78 +0.17
Nasdaq (0NDQC ) 15775.14 -79.62 -0.50
Russell 2000 (IWM) 231.25 -0.48 -0.21
IBD 50 (FFTY) 47.43 -0.78 -1.62
Last Update: 4:08 PM ET 11/23/2021

Dow Jones Gains As JPMorgan, Goldman Sachs Lead

The Dow Jones Industrial Average was near session highs, rising about 0.6%.

Bank stocks JPMorgan Chase (JPM)) and Goldman Sachs (GS) were the top gainers in the blue chip index. JPM stock closed up 2.4% while Goldman Sachs popped 2.6%.

Leading insurance play Travelers (TRV) also fared well on the Dow Jones today, rising 2.2%.

Oil play Chevron also did well, notching a gain of 2.1% Chevron is in the buy zone of a 113.21 entry point in a cup without handle.

Walt Disney (DIS) was the worst performer, falling about 2%.

Oil Stocks Bubble As Biden Taps Reserves

Oil stocks were surging after President Joe Biden tapped the U.S. Strategic Petroleum Reserve amid rising gasoline prices. He said 50 million barrels will be released.

It is part of a coordinated effort to drive down prices. Other major nations including China, India, Japan and the United Kingdom will also unleash some their own reserves.

The President said Americans are “feeling the impact of elevated gas prices at the pump and in their home heating bills.” He also said U.S. businesses are hurting as “oil supply has not kept up with demand as the global economy emerges from the pandemic.”

Such a move had already been priced into the market, and oil prices are rising again after recently hitting seven-week lows. U.S. crude oil prices rose 2.6% to $78.77 a barrel.

The top three IBD Industry Groups were all in the oil and gas exploration field. Oil & gas integrated was also near the top of the list.

The bullish action saw Pioneer Natural Resources (PXD) named IBD Stock Of The Day.

Shares closed up 4.2% on the stock market today. PXD stock has an official flat-base buy point of 196.74, according to MarketSmith.

Leading oil and gas stock Diamondback Energy (FANG) is actionable as it rebounds off its 10-week moving average. The stock posted a gain of 4.5%.

FANG is moving well after previously slipping below a cup entry point of 102.63.

What To Do Amid Market Rotation; 3 Stocks In Buy Zones

Software Stocks Struggle

Meanwhile, a host of top software stocks were being hit as high multiple growth plays struggled.

Warren Buffett stock Snowflake (SNOW) was a notable loser. While it was off session lows the enterprise software large cap closed the day down 3.5%.

The data analytics play previously passed the 20% profit goal from its latest buy point of 328.16, but it has now given back much of its gains. If it continues to fall it could flash a round-trip sell signal.

Snowflake is a member of the prestigious IBD Leaderboard list of top growth stocks.

CrowdStrike (CRWD) fell 3.8%, ServiceNow (NOW) dipped 3%, Atlassian (TEAM) closed well off lows as it fell 3.4% and Shopify (SHOP) slipped 1.4%.

Donald Trump SPAC Plunges

The Donald Trump SPAC Digital World Acquisition plunged Tuesday. It closed down 12%, and the stock is now more than 75% off its record of high of 175.

Digital World Acquisition skyrocketed last month on the news it would serve as a vehicle to take the Trump Media & Technology Group public via a merger.

Last week Sen. Elizabeth Warren sent a letter to the SEC urging it to probe the deal.

She questioned whether the company and Trump “may have committed securities violations by holding private and undisclosed discussions about the merger as early as May 2021, while omitting this information in U.S. Securities and Exchange Commission (SEC) filing and other public statements.”

In addition to Truth Social, a social media site, the firm plans to offer a subscription-based video-on-demand service to be called TMTG+.

Despite the wild action the stock is still up bigly overall for the year. It remains up nearly 300% so far in 2021.

Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.


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