Key market indexes rebounded early Wednesday, with the Nasdaq leading and the Dow Jones Industrial Average up nearly 200 points.
The Nasdaq rallied 0.6%, the S&P 500 was up nearly 0.6% and the Dow Jones industrials rose 0.5% in the stock market today. Small caps tracked by the Russell 2000 lagged, up 0.3%. Volume was lower on both major exchanges vs. the same time Tuesday.
Among exchange traded funds, Innovator IBD 50 (FFTY) climbed 0.7%, while the Nasdaq 100-tracking Invesco QQQ Trust (QQQ) rose 0.9%. The IBD 50 ETF, which hit a new high last week, fell back below a 50.06 consolidation buy point Tuesday to test its 50-day moving average.
Stocks sold off hard on Tuesday, as Treasury Secretary Yellen warned the Senate Banking Committee that a U.S. default is likely without a debt limit hike by Oct. 18. Late Monday, Senate Republicans blocked a debt-limit hike and short-term funding measure that would avoid a partial government shutdown. A rise in Treasury yields also hurt growth stocks Tuesday.
U.S. Stock Market Today Overview
Last Update: 10:16 AM ET 9/29/2021
The U.S. economy continues to recover from the Covid-19 pandemic, which triggered nationwide lockdowns over a year ago. Most states had relaxed restrictions as vaccinations continued to roll out and cases decreased. But cases are rapidly rising again in some places, and mask mandates are returning in some states as the delta variant spreads.
Cumulative Covid-19 cases worldwide have topped 233 million, with nearly 4.8 million deaths, according to Worldometer. In the U.S., cases are approaching 44 million with more than 709,000 deaths.
Growth Stocks To Watch
Micron Technology (MU) sank 4% early Wednesday, before paring its loss to 1%. Shares, in a downtrend since mid-April, fell below the 50-day moving average on Tuesday. The stock met resistance at the line multiple times this year. Late Tuesday, the memory-chip giant reported better-than-expected earnings and sales but guided sharply lower.
Micron’s earnings surged 124%, while sales rose 37%. For the current quarter, Micron expects to earn an adjusted $2.10 a share on sales of $7.65 billion. Wall Street was modeling EPS of $2.53 on sales of $8.54 billion in its fiscal first quarter, FactSet said.
Over in the IBD 50, Asana (ASAN) led with a 6% pop in heavy trade, on track to break a three-session slide. The stock remains sharply extended past a June breakout from a cup base and subsequent rebound off the 10-week line.
InMode, which plunged nearly 13% Tuesday, had more than doubled from a breakout in June and was showing signs of a climax top. It held above its 50-day line, however.
Dow Jones Movers
Boeing (BA) soared 4% in fast turnover to lead the Dow. That lifted shares above the 50-day line — and it’s now trying to regain its 200-day line. Bernstein upgraded the stock to outperform from market perform and raised its price target to 279 from 252. In addition, Bernstein raised ratings across much of the aerospace sector, as upgraded traffic forecasts point to an “inflection point for global travel.”
Nike, trending lower since early August, is looking for support at its 200-day line after falling to it on Tuesday. It’s also fallen below a 148.05 buy point of a June breakout.
Apple, up 1.4%, has held above a 137.17 buy point. It slipped back near the top of a buy range, which goes up to 144.03.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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