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Dow Slips, Nasdaq Sinks As Stocks Sell Off On Intel, Snap

Key market indexes reversed lower midday Friday, as the Dow Jones Industrial Average gave up a 162-point gain and the Nasdaq extended its losses.




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The Nasdaq sank 1.1%, the S&P 500 slipped 0.4% and the Dow Jones industrials edged 0.1% lower in the stock market today. Small caps tracked by the Russell 2000 fell 0.7%. Volume was higher on both major exchanges vs. the same time Thursday.

Among exchange traded funds, Innovator IBD 50 (FFTY) shed 2%, while the Nasdaq 100-tracking Invesco QQQ Trust (QQQ) gave up 0.8%. The IBD 50 ETF popped back above its 50-day moving average last week and is now about 1% below the 50.06 buy point of a failed breakout.

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 have topped 243 million, with over 4.9 million deaths, according to Worldometer. In the U.S., cases have surpassed 46 million with almost 754,000 deaths.

Growth Stocks To Watch

Tesla (TSLA) rose 1.2% to a new high, extending Thursday’s 3.3% advance. Shares remain comfortably above a 764.55 buy point of a cup with handle, as well as earlier entries at 700.10 and 730. Now, 900.50 can be considered an alternate entry.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 35568.51 -34.57 -0.10
SS&P 500 (0S&P5) 4530.14 -19.64 -0.43
Nasdaq (0NDQC ) 15049.60 -166.10 -1.09
Russell 2000 (IWM) 226.40 -1.55 -0.68
IBD 50 (FFTY) 49.01 -0.96 -1.92
Last Update: 12:04 PM ET 10/22/2021

Nvidia (NVDA) climbed past a 230.53 buy point of a new shallow base early Friday, before giving back most of its gains. The current pattern is part of a second-stage base, building on the heels of a prior breakout from a cup with handle. The graphics-chip designer is an IBD Leaderboard stock.

Pool (POOL) gained 2% in heavy volume to clear a 500.95 buy point of a cup base, according to MarketSmith chart analysis. Shares remain in buy range, which goes up to 526. The relative strength line, which compares a stock’s performance to the S&P 500, is at a new high. That’s a bullish sign. On Thursday, the stock soared nearly 8% after Pool’s Q3 results topped views and it guided higher on 2021 earnings.

Regions Financial (RF) jumped almost 3% in twice normal trade to break out past a 23.91 buy point of a 21-week cup base. Shares are in buy range up to 25.11. Early Friday, the Alabama-based bank reported Q3 earnings that beat Wall Street targets.

But Snap (SNAP) gapped down and crashed 25% in huge turnover, tumbling below its 200-day line for the first time in 18 months. The mobile app operator beat Q3 earnings views late Thursday. But it fell short on sales and its Q4 revenue outlook missed due to various issues. Snap estimated Q4 revenue in a range from $1.16 billion to $1.2 billion, below analyst estimates for $1.36 billion.

Dow Jones Movers

American Express (AXP), up nearly 5% in heavy trade, led the upside on the Dow Industrials. Shares gapped back above a 178.90 buy point of a cup with handle, where they remain in buy range up to 187.85. Early Friday, the credit card giant delivered Q3 earnings and revenue that beat forecasts.

Procter & Gamble (PG), Walmart (WMT) and UnitedHealth Group (UNH) added about 1% each.

But Intel (INTC) gapped down and plunged 11% in high turnover, undercutting the bottom of a six-month consolidation. Late Thursday, the chip giant reported Q3 earnings that crushed views. But adjusted revenue fell short by some measures, led by data-center chips. Q4 earnings guidance was light, as operating expenses rise. The chip giant’s CFO is stepping down as well.

Disney (DIS), McDonald’s (MCD) and Honeywell International (HON) gave up more than 1% apiece.

Other News

Digital World Acquisition (DWAC), a special-purpose acquisition company (SPAC) merging with Trump Media & Technology Group, soared as much as 284% early Friday morning to 175 before being halted due to a circuit breaker. It’s on pace to add to Thursday’s 356% surge after former President Donald Trump announced plans to launch a social media company. In midday trade, DWAC cut its early gains to about 92%.

Follow Nancy Gondo on Twitter at @IBD_NGondo

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