The Nasdaq composite and Russell 2000 small-cap index outperformed in afternoon trading Thursday, while the Dow Jones Industrial Average and S&P 500 held modest gains.
Top gainers in the Nasdaq 100 today included beaten down Chinese stocks like Pinduoduo (PDD), Baidu (BIDU) and NetEase (NTES). Other former leaders in sharp downtrends also outperformed like Peloton (PTON), Zoom Video (ZM) and DocuSign (DOCU).
It might be tempting to buy stocks like this on sale, but it’s very difficult making money in beaten-down stocks that have been hit hard by institutional selling in recent months.
U.S. Stock Market Today Overview
Last Update: 1:22 PM ET 12/30/2021
Tesla (TSLA) reversed higher off its 50-day moving average after falling 3% earlier. Tesla stock fell early after the company said it was recalling a large number of Model 3 and Model S cars because opening and closing the trunk can cause the rearview camera to malfunction. Q4 delivery data will be out soon, most likely on Monday.
Nasdaq Eyes 16,000
The Nasdaq composite led the way, up 0.5%. The Nasdaq composite confirmed a new uptrend on Dec. 15 when the index followed through on the eighth day of its rally attempt. It jumped 2.15% in higher volume. But a big reversal the next day called the rally into question. The S&P 500 also confirmed a new uptrend on Dec. 15, but a distribution day on Dec. 17 also called the rally into question. Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.
The Dow Jones industrials were up less than 0.1%. Salesforce.com (CRM) led the way in the blue-chip index as the software giant holds above its 200-day moving average. CRM stock is tracked in the enterprise software group, which started to roll over in mid-November.
The S&P 500 added 0.1% as casino operators outperformed. Penn National Gaming (PENN) jumped 5%, but it’s more than 60% off its high after a sharp sell-off. Wynn Resorts (WYNN) and Las Vegas Sands (LVS) gained about 3% each.
Spotlight On Growth Stocks
Inside the MarketSmith Growth 250, Olaplex (OLPX) broke out powerfully over a trend line, rising 6%. The beauty firm is forming the right side of a first-stage base after its IPO in late September at a price of 21 per share.
In the security software group, Tenable (TENB) added 1.5% to 56.49 as it tries to clear a 56.94 buy point.
Micron Technology (MU) lagged, but the memory-chip maker moved nicely off lows. The stock popped 3.5% Wednesday after Samsung said it was reducing production at its memory chip plants in Xi’an, China due to a spike in Covid cases. But Micron also uses a test and assembly facility in Xi’an and cited near-term production challenges.
Follow Ken Shreve on Twitter @IBD_KShreve for more stock market analysis and insight.
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