Dow Jones Rallies With China Set For Evergrande Collapse; Microsoft, Nvidia Offer Entries; Meme Stock Surges

The Dow Jones Industrial Average closed higher again as U.S. stocks rallied, even as China prepared for the demise of Evergrande. Microsoft (MSFT), Alphabet (GOOGL) and Nvidia (NVDA) were offering rebound entries. (CRM) was the top blue chip. Meme stock BlackBerry (BB) vaulted on earnings.


A trio of stocks managed to pass buy points amid the broad bullish action. Pure Storage (PSTG), Oneok (OKE) and Devon Energy (DVN) attempted breakouts.

China Gets Ready For Storm

American stocks were continuing to shake off Monday’s pullback on the imminent demise of China Evergrande Group, a real estate investment company.

The communist country is bracing itself for the impact, with the People’s Bank of China pumping a further $17 billion into its banking system after injecting $13 billion into it earlier this week.

According to Wells Fargo analysts, no major U.S. banks have more than 1.5% of their assets tied to Chinese cross-border deals, reducing contagion risk.

Chinese officials have been tasked with “getting ready for the possible storm,” according to the WSJ. Local government has been given the task of preventing unrest and helping to deal with the economic fallout.

Market Rally Revs Higher; 17 Leaders Flash Buy Signals

Nasdaq Gains As Growth Stocks Surge

The Nasdaq made the mildest gain among the major indexes, but still rose 1%. Hydrocarbon play APA Corp. (APA), the parent of Apache, was one of the top performers, rising more than 7%.

The S&P 500 fared even better, rising 1.2%, closing just above its 50-day moving average. Marriott International (MAR) was the top gainer, rising just under 4%.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 34756.99 +498.67 +1.46
S&P 500 (0S&P5) 4447.82 +52.18 +1.19
Nasdaq (0NDQC ) 15048.84 +151.99 +1.02
Russell 2000 (IWM) 224.81 +3.91 +1.77
IBD 50 (FFTY) 52.34 +1.31 +2.57
Last Update: 4:00 PM ET 9/23/2021

The S&P sectors mostly made progress, with only utilities and real estate slipping lower. Energy performed strongly once again, while financials also popped.

Small caps managed to outperform the major indexes, aided by strength in financials. The Russell 2000 finished with a gain of 1.8%.

But growth stocks fared best, with the Innovator IBD 50 ETF (FFTY) rising more than 2%.

Dow Jones Today: Microsoft Stock Offers Entry

The Dow Jones Industrial Average surged by just under 500 points as it posted the best performance among the major indexes. It closed up 1.5%, and is closing in on its 50-day moving average.

Microsoft stock is now offering up a new entry as it rebounds off its 10-week line. It is offering up an entry of 295.68, and is actionable up to 325.25.

Institutional investors are big backers of Microsoft stock. In total, 40% of its stock is being held by funds. It boasts eight consecutive quarters of increasing fund ownership.

But it was that made the biggest strides on the Dow Jones today. The software stock turned in a gain of more than 7%.

CRM stock got a big boost after management raised its full-year 2022 revenue guidance to between $26.25 billion and $26.35 billion.

Nvidia Stock, GOOGL Flash Buy Signals

Chip stock Nvidia is actionable again as it stages a nice rebound off its 10-week moving average.

It is offering up an entry of 212.54 and is buyable up to 233.79.

The bullish action saw exposure to the stock increased in the prestigious IBD Leaderboard list of leading growth stocks.

Google parent Alphabet, which is also a Leaderboard member, is offering up an entry of 2,778.95 as it bounces off its 10-week line.

GOOGL stock is buyable up to 3,056.85. The stock leads the Internet-Content Group, which is currently performing very strongly. This is reflected in its perfect group RS Rating of A+.

Alphabet’s performance since the start of the year is very strong, with the stock rising more than 60%.

Meme Stock BlackBerry Vaults Higher

Meme stock BlackBerry pogoed above its 50-day and 200-day moving averages after beating Wall Street expectations.

The company lost 6 cents per share, better than analyst expectations for a 7 cents per share loss. Revenue of $175 million also beat estimates.

Shares closed up more than 11%, building on strong premarket action.

Nevertheless it has a poor EPS Rating of 43 and is well off its late January high of 28.77.

Other meme stocks did not fare as well. AMC Entertainment (AMC) was slightly negative, while GameStop (GME) edged up about 0.6%.

These 3 Stocks Pass Buy Points

Pure Storage is in a buy zone after clearing a cup with handle. The ideal buy point here is 27.05.

The relative strength line has been making strong progress of late, while Pure Storage boasts solid stock market and earnings performance.

Natural gas stock Oneok closed just below its buy point after breaking past a consolidation entry of 57.65.

It has good all-around performance, however its Accumulation/Distribution Rating of D+, on an A+ to E scale, is less than ideal.

Devon Energy managed to clear a consolidation buy point of 32.09 and remains in the 5% chase zone.

Its stock performance over the past 12 months has been very strong, with its RS Rating coming in at 96. The stock has gained almost 110% so far in 2021.

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


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