Key market indexes moved off session lows midday Friday, as the Dow Jones Industrial Average erased most of an early 117-point loss.
The Nasdaq fell 0.3%, while the Dow Jones industrials and S&P 500 were roughly flat in the stock market today. Small caps tracked by the Russell 2000 were off 0.3%. Volume was mixed, lower on the NYSE but higher on the Nasdaq vs. the same time Thursday.
Among exchange traded funds, Innovator IBD 50 (FFTY) fell 1.3%, while the Nasdaq 100-tracking Invesco QQQ Trust (QQQ) gave up 0.5%. The IBD 50 ETF hit a new high Thursday and remains in buy range from a 50.06 entry of a seven-month consolidation.
Evergrande Group, China’s biggest property developer, appeared to miss a Thursday deadline on an $83.5 million bond payment. It now enters a 30-day grace period before bondholders can signal a default. Investors worldwide fear a collapse could hit global markets, although reports say Beijing is taking steps to contain the damage.
China also banned Bitcoin and all other cryptocurrency transactions. Officials said the move was made to further limit the risks of crypto trading and for security and social stability purposes.
U.S. Stock Market Today Overview
Last Update: 12:06 PM ET 9/24/2021
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 are approaching 232 million, with more than 4.7 million deaths, according to Worldometer. In the U.S., cases have topped 43 million with nearly 703,000 deaths.
Growth Stocks To Watch
In the IBD 50, Deckers Outdoor (DECK) slumped 9% in heavy volume to drop below its 50-day moving average. As of Thursday, the stock had been approaching a 444.58 buy point of a flat base, according to MarketSmith chart analysis. The drop triggered the 7%-8% loss-cutting sell rule, leading to Deckers’ exit from IBD Leaderboard.
Winners were scarce in the IBD 50. InMode (INMD) rose 3% to a new high, on track for a fourth straight advance. The Leaderboard stock is well extended from a 104.39 buy point on a pullback to the 10-week line.
Atkore (ATKR), up 2% in above-average trade, is closing in on a 98.10 buy point of a six-week consolidation on a MarketSmith daily chart. It’s about 1% away from the entry.
Dow Jones Movers
Nike (NKE), the biggest blue chip loser, gapped down and sank 7% in fast turnover. Late Thursday, the athletic shoe and apparel giant reported mixed fiscal Q1 results as sales missed amid supply-chain headwinds. Analysts expected earnings of $1.12 a share on sales of $12.47 billion, according to FactSet. Nike earned $1.16 on sales of $12.2 billion.
NKE stock is now about 15% away below a 174.48 buy point of a flat base. If it falls further, the flat-base pattern will no longer be intact. Shares pulled back after hitting a high of 174.38 on Aug. 6. The stock stumbled below its 50-day line on Sept. 2 and has been trading below it since.
Other Dow stocks were down less than 1% including Apple (AAPL) and Microsoft (MSFT), which gave up about 0.5% piece. Apple is still below its 50-day line despite a three-day win streak during the week. On Monday, it hit its lowest level since early July.
Microsoft has held above its 50-day line after testing support on Monday. That was the first breach since a June 21 breakout past a 263.29 buy point.
Salesforce.com (CRM) led the upside on the Dow with a 2% gain to a new high. The stock remains in buy range from a 275.32 entry of a cup with handle. The buy range tops out at 289.09. On Thursday, Salesforce broke out thanks to a 7% surge after the enterprise software maker raised its sales outlook for the current fiscal year, which ends in January.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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