Major stock indexes were off session lows but still negative in afternoon trading Wednesday, partially hurt by a sell-off in Bitcoin. The Dow Jones Industrial Average was down 0.6% as the blue-chip index tests support at the 50-day moving average. But Salesforce.com (CRM) bucked the trend, helped by a Morgan Stanley upgrade.
Chevron (CVX) lagged in the Dow Jones today. Chevron stock slumped below its 50-day moving average, falling more than 2%. Other laggards in the Dow Jones included Nike (NKE) and Goldman Sachs (GS). Goldman is testing a prior buy point of 356.95, which happens to coincide with the stock’s 21-day exponential moving average.
Outside The Dow Jones
The S&P 500 reduced its loss to 0.5%. Target (TGT) was a bright spot after the retailer reported another strong quarter. Revenue growth accelerated sequentially, up 23% to $24.2 billion. Strength in apparel sales, which surged 60% year over year, boosted results. Same-store sales jumped 22.9%, well ahead of the 10.7% consensus. Target is in a new buy zone after a successful first test of its 10-week moving average.
U.S. Stock Market Today Overview
Last Update: 1:12 PM ET 5/19/2021
The S&P 500 on Tuesday suffered its fifth distribution day in 10 trading sessions. It now shows eight higher-volume declines since April 14. When distribution days start to cluster, it can presage even more stock market weakness.
The Nasdaq composite moved off lows but still lost 0.4%. It’s been trading below its 50-day line, along with the Nasdaq 100, which was down 0.3%. Several semiconductor stocks outperformed in the Nasdaq 100, including Marvell Technology (MRVL), Analog Devices (ADI), Microchip (MCHP) and AMD (AMD).
Tesla (TSLA) was the worst performer in the Nasdaq 100, down around 3.5%, on reports that 10,000 cars are on hold at its Fremont, Calif., plant due to a missing part.
The Innovator IBD 50 ETF (FFTY) gave back nearly 2%, but Jabil (JBL) bucked the trend, up nearly 1%. Market risk notwithstanding, Jabil is in a follow-on buy zone as it finds support at the 50-day line after a breakout from a flat base in March.
Applied Materials (AMAT) also bucked the trend, up 2% after erasing losses. The chip equipment firm reports earnings Thursday after the close.
Cisco Systems (CSCO) pared losses ahead of its earnings report after the close today. The stock has shown uncanny strength, holding support at its 10-week line after a breakout from a base in late March. Cisco was featured as an earnings option trade in the latest Earnings Preview story.
Follow Ken Shreve on Twitter @IBD_KShreve for more stock market analysis and insight.
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