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Dow Jones Drops As Disney Weighs; Tech Stocks Lead Downside; Multiple Financial Stocks Trade Inside Buy Zones

The Dow Jones Industrial Average fell modestly in today’s market, extending its losses from last week. The tech-heavy Nasdaq led on the downside as the major indexes traded choppily near their lows of the day.




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Dow Jones In Stock Market Today

At around 1:30 p.m. ET, the Nasdaq composite held a loss of 1%. The S&P 500 traded around 0.6% lower. The Dow Jones industrials declined 0.4% and the small-cap Russell 2000 index fell 0.5%. Volume was running higher on the NYSE and lower on the Nasdaq vs. the same time on Friday.

Meanwhile, stocks continued to fall on Monday after a sell-off last week, sparked by fears of rising inflation. IBD’s market outlook was downgraded to “uptrend under pressure” last Wednesday, after the Nasdaq hit its lowest level in six weeks.

The tech-heavy index remains behind the Dow and S&P 500 as the major indexes have diverged in recent trading sessions. The Nasdaq remains roughly 6.7% away from its all-time high. Meanwhile, the S&P 500 rebounded from its key 50-day moving average, a support level.

Stocks In The News

A few stocks made notable moves on Friday, including Coinbase (COIN), which gapped down 4.5% in early afternoon trading.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 34253.11 -129.02 -0.38
S&P 500 (0S&P5) 4149.15 -24.70 -0.59
Nasdaq (0NDQC ) 13290.24 -139.74 -1.04
Russell 2000 (IWM) 219.84 -1.01 -0.46
IBD 50 (FFTY) 44.23 -0.39 -0.87
Last Update: 1:42 PM ET 5/17/2021

Also, Bitcoin fell as low as $42,212 early Monday, before paring losses. It was around $43,329 midday, according to Coindesk. Over the weekend, Tesla CEO Elon Musk implied in a tweet that Tesla might have sold or will sell its remaining Bitcoin holdings. Early Monday, he tweeted: “To clarify speculation, Tesla has not sold any Bitcoin.”

Additionally, Grayscale Bitcoin Trust (GBTC), which tracks the price of Bitcoin, plunged about 13% Monday and is now on pace for its lowest close in over three months.

Elsewhere, two stocks from the MarketSmith Growth 250 list broke out from proper bases. Kearny Financial (KRNY) and Ameris Bancorp (ABCB) both traded above buy points on Monday.

Kearny Financial broke out from a cup base with 13.44 buy point. Shares traded within the buy zone which tops out at 14.11. Meanwhile, shares of Ameris Bancorp traded near a 57.91 buy point of a cup-with-handle base. Shares remained below this key buy area in afternoon trading.

As for growth stocks, the Innovator IBD 50 ETF (FFTY) declined 0.5%. the index is still trying to recover its losses from last week. The ETF is close to reclaiming the 50-day line. IBD 50 stocks leading Monday included Floor & Decor (FND) and Yeti (YETI), with gains of over 3.5% each.

Dow Jones Today

In the Dow Jones industrials, several blue chips held losses of more than 1%. Salesforce.com (CRM), Disney (DIS) and Home Depot (HD) led with losses of roughly 2% each.

Disney traded lower after falling over 2% on Friday.

Shares of Disney stock tumbled Friday after the company reported mixed fiscal Q2 results late Thursday. Earnings beat expectations while sales missed. Most importantly, streaming subscriber growth fell short of some analyst forecasts.

The theme parks and media giant had been working on a new flat base with a 203.12 buy point. But the recent slide breached the bottom of the base. At nearly 17% off the left-side high, the flat-base pattern is no longer valid, according to IBD MarketSmith chart analysis.

Elsewhere, Home Depot tested its 10-week moving average after falling more than 2% and leading on the downside. The home improvement retailer reports earnings early Tuesday. Analysts expect the firm to earn $3.08 a share on revenue of $34.7 billion. A bounce off the 10-week line could set up a chance to buy or add shares as an alternate buy point.

JPMorgan (JPM) continued above a 161.79 buy point of a flat base. Share remain inside the 5% buy zone as JPMorgan stock maintains decent IBD Ratings, with an 81 Relative Strength Rating and a strong 93 Composite Rating.

Fellow blue-chip financial Goldman Sachs (GS) rose slightly as shares remained back above the buy zone from a cup base with a 356.95 buy point, according to IBD MarketSmith chart analysis. Shares originally broke out past the buy point a week ago, then briefly fell. The stock maintains a strong 87 RS Rating and a near-perfect 98 Composite Rating.

Follow Fox on Twitter at @foxonstocks for more Dow Jones and market commentary.

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