Dow Jones Slips, Nasdaq Hits New High As Tesla Rallies; 2 Breakouts To Watch

Stocks were mixed Wednesday afternoon with the Nasdaq rising to a new high and the Dow Jones Industrial Average staying slightly underwater.


The Nasdaq rose 0.2%, the S&P 500 was flat and the Dow Jones industrials edged 0.1% lower in today’s stock market. Small caps tracked by the Russell 2000, up 0.6%, outperformed. Volume was higher on both major exchanges vs. the same time Tuesday.

Among exchange traded funds on Wednesday, Innovator IBD 50 (FFTY) advanced 0.9%, while the Nasdaq 100-tracking Invesco QQQ Trust (QQQ) added 0.2%.

The U.S. economy is recovering from the Covid-19 pandemic, after it triggered nationwide lockdowns over a year ago. Most states have relaxed restrictions as vaccinations continue to roll out and cases decrease.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 33914.46 -31.12 -0.09
S&P 500 (0S&P5) 4248.76 +2.32 +0.05
Nasdaq (0NDQC ) 14287.51 +34.24 +0.24
Russell 2000 (IWM) 229.27 +1.36 +0.60
IBD 50 (FFTY) 45.08 +0.41 +0.92
Last Update: 2:46 PM ET 6/23/2021

Cumulative Covid-19 cases worldwide have topped 180 million, with over 3.9 million deaths, according to Worldometer. In the U.S., cases have surpassed 34 million with nearly 618,000 deaths, although the number of new cases and deaths in the U.S. has slowed dramatically.

Dow Jones Winners And Losers

Financials led the Dow Jones index as Goldman Sachs (GS), JPMorgan (JPM) and American Express (AXP) gained 1% or more.

American Express is extended from a 150.55 buy point of a cup with handle, according to MarketSmith chart analysis. But it remains in buy range from a second rebound off its 10-week moving average, following the late April breakout.

Goldman Sachs is trying to retake its 50-day average after slipping below the support line last week. During its nearly 8% drop last week, the stock erased a 10% gain from a  356.95 buy point of a shallow base. That triggered the round-trip sell rule.

Amgen (AMGN) fell 1.2% in weak trade, before paring its loss by half. The biotech giant’s stock continues to shape a flat base with a 261.10 buy point. It’s about 9% away from the entry.

Among other blue chips, Cisco (CSCO) and Intel (INTC) also gave up about 1% apiece. Other big-cap techs were mixed. IBM (IBM) and (CRM) slipped, while Microsoft (MSFT) and  Apple (AAPL) saw small gains.

Microsoft stock, up 0.2%, cleared a 263.29 buy point of a cup base on Tuesday. Shares remain in potential buy range, which goes up to 276.45. The stock’s relative strength line is nearing recent highs, a positive sign of stock market outperformance in recent weeks.

On Tuesday, Microsoft joined Apple in the $2 trillion-valuation club. Microsoft is an IBD Leaderboard and IBD Long-Term Leader stock. The software giant is expected to unveil Windows 11 at an event Thursday.

Outside The Dow

Automakers, solar, and oil and gas stocks led the upside among IBD’s 197 industry groups. But utilities, consumer electronics retailers and medical stocks lagged.

In the automaker group, Tesla (TSLA) rallied 5% to retake its 200-day line for the first time since early May. The electric vehicle maker opened a solar charging station in the Tibet’s capital Lhasa, its first in China. Tesla stock may be forming a new base but is still far away from any new buy point.

On Jan. 25, Tesla stock hit a record high at 900.40, after climbing as much as 93% from a 466 buy point in a cup with handle.

Breakouts To Watch

Breakouts today included investment manager KKR (KKR), which rose 2% to clear a 59.25 buy point of a shallow cup base. But volume was lower than usual. The strongest breakouts often occur in volume at least 40% higher than normal.

On the plus side, KKR’s base is second stage. Such early stage breakouts tend to yield bigger gains than later stage patterns. The relative strength line, which compares a stock’s performance to the S&P 500, hit a new high. That’s a bullish sign. KKR has been added to IBD SwingTrader.

Brazilian mining stock Vale (VALE) was up 1% and just below a 23.12 buy point of a flat base, after topping the entry during the session. The RS line is close to a new high. Vale earns a highest possible 99 Composite Rating to lead the 34-stock metal ores mining group.

Follow Nancy Gondo on Twitter at @IBD_NGondo


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