The Dow Jones Industrial Average rallied 200 points before sharply paring gains, as a tech stock sell-off dragged the Nasdaq down.
The Dow Jones industrials rose 0.4%, the S&P 500 reversed slightly lower and the Nasdaq fell nearly 0.8% in the stock market today. Small caps tracked by the Russell 2000 edged slightly lower. Volume was lower on both major exchanges vs. the same time Thursday.
Dow Jones, Nasdaq Under Pressure
The U.S. stock market had reached new highs following the coronavirus crash. But the market uptrend fell under pressure Tuesday, as the major indexes suffered sharp declines.
For the week, the Nasdaq is headed for a 3.2% loss. The S&P 500 and Dow are eyeing respective declines of 2.1% and 1.4%. That would mark a second straight down week for all three indexes, as they test their 10-week moving average lines.
U.S. Stock Market Today Overview
Last Update: 12:52 PM ET 9/11/2020
The Nasdaq holds a 22% year-to-date gain despite recent volatility, while the S&P 500 was up 3% through Thursday’s close. The Dow is down 4% and the Russell 2000 is 9% underwater this year. Read The Big Picture for detailed market analysis.
Worldwide coronavirus cases have topped 28.4 million, with more than 915,000 deaths, according to Worldometer. In the U.S., confirmed cases are now close to 6.6 million, with the death toll climbing past 196,000.
Nike Runs Ahead Of The Pack
Dow Inc. (DOW) and Nike (NKE) led the blue-chip with gains of nearly 3% apiece. The former was up 2.5% in twice normal trade to its highest level since January. The stock is extended from a 46.03 buy point.
Nike, up 2.8% in fast trade, marked a new high. The IBD Leaderboard stock is well extended from a 104.79 buy point of a cup with handle, according to MarketSmith chart analysis. The buy range topped out at 110.03.
But Dow Jones component Apple (AAPL) and Salesforce.com (CRM) lost 2% each, and Microsoft (MSFT) fell 1%, as tech stocks were under pressure again. Apple remains far extended from a 72.15 buy point of a cup with handle.
Homebuilders, shoe/related apparel makers and chip stocks led the upside among IBD’s 197 industry groups. But utilities, automakers and meat products stocks underperformed.
Electric-Car Makers In Motion
Tesla (TSLA) was back in negative territory after giving up an early 3% gain. The electric-car maker plans to export Model 3 vehicles made in China to Asian and European markets, according to Reuters. Tesla stock is on track for a near 12% loss this week, but it’s still holding nicely above its 10-week moving average.
Nikola (NKLA), also an electric-vehicle maker, plunged 16% in heavy trade. It dived 11% Thursday, after short-seller Hindenburg Research called the carmaker an “intricate fraud.” Nikola on Friday disputed the short seller’s allegations. Shares are 65% off their high.
Over in the IBD 50, winners included PerkinElmer (PKI), Big Lots (BIG) and Palo Alto Networks (PANW). Chip leaders Inphi (IPHI) and ASML Holdings (ASML), as well as Adobe (ADBE), Alibaba (BABA) and Netflix (NFLX), added about 2% each.
Adobe In Buy Range?
Adobe is back in buy range from a 470.71 flat-base entry. The Leaderboard stock triggered the round-trip sell signal last week after erasing a double-digit gain from the buy point. But it’s making a solid rebound off its 10-week line. Adobe is featured in the latest Earnings Preview column.
Fellow Leaderboard stock Netflix is trying to hold support at its 50-day line as it works on a new base with a 575.47 potential buy point. According to Leaderboard analysis: “The new base is second stage, which is still favorable. Despite new volatility, the base remains in play.”
The Innovator IBD 50 ETF (FFTY) reversed to a 0.3% dip in the stock market today.
In earnings news, Peloton (PTON) vaulted 11%, nearly hitting a record high, before paring its gain to 3%. In early afternoon trade, it reversed to a 0.6% loss. Late Thursday, the fitness company reported fiscal Q4 results that beat views on both the top and bottom lines.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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