Banking

Dow Jones Rallies On Key Breakouts But Nasdaq Lags As Tech Stocks Come Under Pressure

Key market indexes were mixed midday Monday, as several Dow Jones Industrial Average stocks cleared buy points but the tech-heavy Nasdaq lagged.




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The Dow Jones industrials rose 0.4%, the S&P 500 gave up 0.3% and the Nasdaq fell 0.7% in the stock market today. Small caps tracked by the Russell 2000 outperformed, up 1.8%. Volume was higher on both major exchanges vs. the same time Friday.

Among exchange traded funds, Innovator IBD 50 (FFTY) fell 2%, while the Nasdaq 100-tracking Invesco QQQ Trust (QQQ) gave up 0.7%. The IBD 50 ETF hit a new high Thursday and remains in buy range from a 50.06 entry of a seven-month consolidation.

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 232 million, with more than 4.7 million deaths, according to Worldometer. In the U.S., cases are approaching 44 million with nearly 706,000 deaths.

Growth Stocks To Watch

Over in the IBD 50, Repligen (RGEN) skidded 6% in heavy trade. Shares, 7% off last week’s record high, remain well above the 50-day moving average. The Massachusetts-based bioprocessing products maker leads the 136-stock medical products group with a 99 Composite Rating.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 34940.76 +142.76 +0.41
S&P 500 (0S&P5) 4443.92 -11.56 -0.26
Nasdaq (0NDQC ) 14938.93 -108.77 -0.72
Russell 2000 (IWM) 226.95 +3.90 +1.75
IBD 50 (FFTY) 50.47 -1.14 -2.21
Last Update: 12:04 PM ET 9/27/2021

Cloudflare (NET), ZoomInfo Technologies (ZI) and HubSpot (HUBS) lost more than 4% each.

But Atkore (ATKR), Western Alliance Bancorp (WAL) and Upstart (UPST) gained over 3% apiece.

Atkore broke out past a 98.10 buy point of a of a five-week flat base in triple normal trade, according to MarketSmith chart analysis. It remains in buy range up to 103.01. The relative strength line, which compares a stock’s performance to the S&P 500, is at a new high. That’s a bullish sign.

Western Alliance Bancorp is shaping the right side of a 22-week consolidation with a 109.94 buy point. It’s about 3% away from the entry. Upstart is trading near record highs and is sharply extended from a 191.99 buy point of a cup base.

Dow Jones Movers

Dow Inc. (DOW), up 4% in heavy volume, led the blue chip index. Shares are still slightly below their 50-day and 200-day lines.

Chevron (CVX) gapped up and rose 2.5%, on track for a fifth straight advance. The stock is building a 20-week-old consolidation with a 113.21 buy point. It’s trading about 9% below the entry.

Energy stocks rallied Monday, as West Texas intermediate crude prices rose 2% to $75.37 a barrel. Energy Select Sector SPDR (XLE) surged 3.6% to extend its rally. Chevron is one of the ETF’s biggest holdings at about 20% of assets.

Among other Dow winners, Boeing (BA), Caterpillar (CAT), Goldman Sachs (GS) and JPMorgan (JPM) advanced more than 2% each.

Bank Stocks Break Out

JPMorgan, up 2.1%, extended its win streak to five as it cleared a 163.93 buy point of a cup with handle. Shares remain in buy range, which goes up to 172.13.

Goldman Sachs, up 2.2%, climbed back above a 393.36 buy point of a flat base it first cleared in early August. The buy zone tops out at 413.03.

Home Depot (HD) added 1% to move back above a 338.65 buy point of a five-week flat base. It remains in buy range up to 355.58.

But big-cap techs lagged as Apple (AAPL), Salesforce.com (CRM) and Microsoft (MSFT) gave up nearly 2% apiece.

Apple stock, trading about 8% off its high, has closed below its 50-day line since Sept. 17.

Follow Nancy Gondo on Twitter at @IBD_NGondo

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