The Dow Jones Industrial Average traded lower in today’s stock market, as stocks fell on dimmed prospects of further virus relief aid before the election. Despite most stocks falling, stocks that broke out and briefly traded inside buy zones included Tractor Supply (TSCO) and Best Buy (BBY).
The Nasdaq composite traded 1% lower but trimmed that loss a bit at around 1:45 p.m. ET. The S&P 500 fell 0.6% and the Dow Jones declined 0.5%. The Russell 2000 small-cap index lost nearly 0.4%. Volume was trading higher on the NYSE but lower on the Nasdaq vs. the same time on Tuesday.
The Nasdaq currently maintains a 32% year-to-date gain despite recent volatility in the market, while the S&P 500 rose 9% through Tuesday’s close. Meanwhile, the Dow Jones is flat for the year and the Russell 2000 is only down 2%. Read The Big Picture for detailed daily market analysis.
The Innovator IBD 50 (FFTY) exchange traded fund fell 0.7% in afternoon trading. The index continues to trade nicely above its 50-day moving average as it nears a new 40.05 buy point in a five-week flat base. Stocks that weighed on the index included West Pharmaceutical Services (WST) and PayPal (PYPL), which at one point fell 3.8% and 3%, respectively.
Dow Jones Today
As for the Dow Jones, a slight majority of the 30 components traded lower. Disney (DIS) fell as much as 2.7% after posting a 3% gain the day prior. On Tuesday, the company announced a major reorganization to focus primarily on its streaming business and the market reacted positively.
Shares of Disney rose to reclaim their 50-day line on Tuesday for the first time since mid-September. But shares fell back below this key technical level of support on Wednesday. Still, the stock is forming a consolidation base with 153.51 buy point.
Elsewhere in the Dow, UnitedHealth (UNH) fell 2.7% and was among the top Dow Jones decliners. The health insurance giant reported Q3 results Wednesday before the market opened that beat analysts’ expectations for both earnings and sales.
UnitedHealth reported a 10% decline in earnings year-over-year to $3.51 a share. Meanwhile, sales rose 6% year-over-year to $63.7 billion. Shares fell below the 5% buy range from a 323.92 entry of a double-bottom base on Wednesday. The stock broke out from this proper base on Oct. 8.
In other earnings new, Goldman Sachs (GS) traded 1% higher after reporting Q3 results early Wednesday. EPS and sales easily beat expectations due to strong bond trading and asset management. Shares remain 5% away from a 225.34 buy point of a cup with handle.
Finally, Apple (AAPL) stock started off Wednesday with a gain but quickly declined into a 0.6% loss. Shares fell roughly 2.7% on Tuesday after the launch of its new 5G iPhone. The company also unveiled a $99 smart speaker, the HomePod Mini.
The stock is building a new consolidation with a 138.08 entry, according to MarketSmith chart analysis. The chart pattern could also be interpreted as a cup base with the same 138.08 buy point. Currently, Apple maintains an RS Rating of 92 and a Composite Rating of 91.
Two Leading Growth Stocks Breakout
Beyond the Dow Jones, two stocks breaking out of proper bases on Wednesday included Best Buy and Tractor Supply.
Shares of Best Buy broke out of a cup base early Tuesday with a 119.58 buy point but ducked mildly below that entry.
The stock successfully tested the 50-day moving average at the end of September and has risen steadily since then. The company maintains a strong 95 Composite Rating and a solid 93 EPS Rating. The Relative Strength Rating is at 90, which is above the ideal minimum of 80 for stocks breaking out.
Elsewhere, Tractor Supply broke out of a 155.66 entry in a cup base. Shares rose in morning trading before reversing lower 0.3%. The stock is currently just below the 5% buy zone. The retailer is set to report earnings on Oct. 22.
According to IBD data, Wall Street expects the company to report EPS growth in the third quarter of 27% year-over-year to $1.32 per share on revenue of $2.3 billion.
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