Key market indexes extended their losses midday Tuesday, as the Dow Jones Industrial Average hit resistance at its 50-day moving average.
The Dow Jones industrials fell less than 0.8%, the S&P 500 slid 0.6% and the Nasdaq edged 0.3% lower in the stock market today. Small caps tracked by the Russell 2000 were down 0.7%. Volume was running lower on both major exchanges vs. the same time Monday.
Despite a jump in consumer confidence, stocks headed south after some early indecision. Traders mulled a new stimulus proposal from House Democrats. The first presidential debate between Donald Trump and Joe Biden takes place this evening.
The stock market had reached new highs following the coronavirus crash. But IBD’s stock market outlook was lowered to “market in correction” on Wednesday, as the major indexes suffered sharp declines.
The Nasdaq holds a 24% year-to-date gain despite recent volatility, while the S&P 500 was up 4% through Monday’s close. The Dow is down 3% and the Russell 2000 is now 9% underwater this year. Read The Big Picture for detailed market analysis.
U.S. Stock Market Today Overview
Last Update: 11:56 AM ET 9/29/2020
Worldwide coronavirus cases have topped 33.6 million, with more than 1 million deaths, according to Worldometer. In the U.S., confirmed cases are approaching 7.4 million, with the death toll close to 210,000.
As the race toward a coronavirus vaccine or treatment heats up, Abbott Laboratories (ABT) rose 1.2%, on track for a third straight advance. President Trump on Monday announced plans to distribute 150 million rapid coronavirus tests made by the medical products giant.
Abbott stock is slightly extended from a 100.10 buy point of a flat base cleared in July. It’s rebounded off its 10-week moving average. That usually sets up a chance to buy or add a smaller number of shares. But all purchases are highly risky now with the market in correction.
Banks Lower, But Nike Runs Higher
Chevron (CVX), down 3%, was the biggest Dow loser. It’s 41% off its high and near its lowest levels in nearly six months. Light sweet crude prices skidded nearly 3% to $39.41 a barrel, pressuring oil stocks.
Financial stocks also weighed on the blue chip index. Travelers (TRV), Goldman Sachs (GS) and JPMorgan (JPM) fell more than 1.5% apiece. All three stocks remain stuck below their 50-day lines and are over 20% off their 52-week highs.
Nike stock is extended from a 104.79 buy point of a cup with handle, according to MarketSmith chart analysis. In fact, it has reached the 20%-25% profit-taking zone. So investors should consider locking in some gains.
Oil and gas, casino, hospital and airline stocks led the downside among IBD’s 197 industry groups. But meat products makers, home furnishing retailers and gold mines outperformed.
Beyond Meat Soars
Beyond Meat (BYND) soared 12%, clearing a 167.26 buy point of a cup base in heavy trade. The meat products maker said it will expand distribution of the Beyond Burger to more than 2,400 Walmart (WMT) stores nationwide starting next week. The plant-based meat products are currently in about 800 stores.
While the stock is technically breaking out and in the 5% buy zone, remember the market is in correction mode. Beyond Meat, featured in Monday’s Stocks Near A Buy Zone column, joined the IBD Leaderboard watchlist on Sept. 17.
Over in the IBD 50, Digital Turbine (APPS) surged more than 6%, close to a new closing high. Chip stocks Entegris (ENTG) and Advanced Micro Devices (AMD) also boosted the index, along with discount retailer Big Lots (BIG). All three added more than 2% each.
Beyond Meat, Entegris and Big Lots got airtime in Tuesday’s IBD Live show.
The Innovator IBD 50 ETF (FFTY) rose 0.8% to retake its 50-day line. The growth stock ETF is on track to extend its win streak to four.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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