Banking

Dow Rises As Tech Drops; Energy Stocks Break Out

The Dow Jones Industrial Average traded higher in today’s stock market while the Nasdaq composite diverged and traded lower on Monday. Small caps sharply outperformed with a solid gain.




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Stock Market Today

At 1:30 p.m. ET, the Nasdaq composite fell around 0.8% before further trimming that loss. The Dow Jones traded up 0.4% while the S&P 500 lost 0.1%. The Russell 2000 gained 1.7%. Data showed higher volume on the NYSE and on the Nasdaq vs. the same time on Friday.

Stocks were mixed on Monday amid the pending debt ceiling crisis. Lawmakers are planning to vote in the coming days on new legislation to fund the government beyond the current fiscal year, which ends on Thursday. This would prevent a government shutdown.

Bond yields extended last week’s gains, which hindered the performance of interest rate-sensitive stocks such as tech sector firms. The yield on the 10-year Treasury note was up 3 basis points to 1.48% in afternoon trading on Monday. The 30-year Treasury bond climbed above the psychologically important 2% level.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 34924.63 +126.63 +0.36
S&P 500 (0S&P5) 4446.19 -9.29 -0.21
Nasdaq (0NDQC ) 14961.31 -86.39 -0.57
Russell 2000 (IWM) 226.56 +3.51 +1.57
IBD 50 (FFTY) 50.43 -1.18 -2.29
Last Update: 1:34 PM ET 9/27/2021

Meanwhile, the Technology Select Sector SPDR (XLK) slid as much as 1.3% but pared earlier losses to a 0.9% drop in afternoon trading. The ETF is back below its 50-day moving average after regaining that level two sessions earlier.

On the positive side, investors saw strength in energy, financials and transportation stocks. Energy Select Sector SPDR (XLE) gained 3.7% and extended its rally from last week. The price of U.S. crude oil rose 1.8% to $75.29 a barrel. Strength in these sectors explains why the Dow Jones and S&P 500 have outperformed the Nasdaq.

Growth Stocks To Watch

Growth stocks sharply pulled back on Monday, continuing Friday’s declines. The Innovator IBD 50 ETF (FFTY), which is around 50% technology companies, lost nearly 2.5%. Shares remain inside the buy zone of a 50.06 buy point in a long consolidation pattern.

Stocks underperforming in the IBD 50 Monday included Cloudflare (NET) and Dynavax (DVAX) which fell more than 5% each.

Meanwhile, building products firm Atkore (ATKR) broke out above 98.10 consolidation buy point. The stock traded 3.4% higher in heavy volume. The breakout occurred as the firm’s relative strength line also made a new high, which is a bullish sign.

In the energy sector, growth stock Whiting Petroleum (WLL) and Royal Dutch Shell (RDSB) broke out past buy points.

Whiting Petroleum broke out past a 57.69 cup-based proper entry and traded near the upper edge of the buy range after gaining over 6%. Royal Dutch Shell rose over 5% and gapped up above a 42.39 consolidation entry.

Another oil and gas company in the IBD 50 traded near a buy point. Diamondback Energy (FANG), which led the index on the upside, rose 6% and neared a new 102.63 buy point from a cup base.

FANG got some air time in Monday’s IBD Live show on Zoom.

Dow Jones Today

Inside the Dow Jones, financial stocks outperformed with JPMorgan (JPM) and American Express (AXP) rising 2.5% and 0.8%, respectively.

JPMorgan gained nearly 2.5% and broke out of a cup-with-handle base. Shares are in buy range from a 163.93 buy point. The  blue chip holds a decent 83 Composite Rating and an 82 RS Rating. Elsewhere, American Express is nearing a 179.77 buy point.

Tech leaders were also among stocks trading lower. Apple (AAPL) and Microsoft (MSFT) both lost more than 1% each. Apple is still below its 50-day line despite a three-day win streak last week. But shares also hit their lowest level since early July last week.

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

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