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The Dow Jones Industrial Average closed 262 points higher after rising more than 800 points on Monday. But the Nasdaq composite fell in the current market, as tech stocks continue to sell this week.
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The Nasdaq composite drove the indices lower on Tuesday, unlike the Dow’s gain of nearly 1%. Tech giants like Alphabet (GOOG) and Microsoft (MSFT) traded down 1.3% and 3.4%, respectively. The market is in the midst of a major sector rotation from growth stocks to value stocks.
While most were rising sectors, technology was among the worst performers, followed by consumer discretionary and communications services. Meanwhile, industrials and consumer staples dominated the market on Tuesday.
At the close on Tuesday, the Dow Jones was up 0.9%. The S&P 500 fell 0.1%, while the Nasdaq fell 1.4%. The Russell 2000 Small Cap Index traded 1.9% higher, dominating the market. Volume was lower on the Nasdaq and NYSE compared to the day’s close on Monday, according to early data.
Among those trading lower was the Innovator IBD 50 ETF (FFTY). The growth-focused ETF fell 1.4%, after a massive selloff of 6.6% on Monday. Stocks are now trading below the 50 day mark. The index was hit by big losses in stocks like XP (XP), Ali Baba (BABA) and Commercial office (TTD), which fell by 8.7%, 8.3% and 7.1% respectively.
Dow Jones today
As for the Dow Jones, the stocks leading the index higher included Walgreens (WBA), Boeing (BA) and Chevron (CLC). Walgreens led with a gain of around 7% while Boeing maintained a gain of around 5%.
Boeing’s shares were boosted by news that the Boeing 737 Max would get regulatory approval as early as next week to be put back into service after a grounding of nearly 20 months. While the stock still maintains a very low RS rating of 17 out of the best 99 possible, it has finally recovered its 50-day and 200-day lines.
Elsewhere in the Dow, Salesforce.com (CRM) sold nearly 5% after briefly trading in the 5% buy zone on Monday. The action broke out from a buy point of 270.26 double bottom. The stock triggered the 7% to 8% sell rule and fell back below the 50-day line after recovering it on Thursday.
Besides Salesforce, the Dow Jones stocks leading the decline on Tuesday included Microsoft and Nike (NKE), down 3.4% and 1%, respectively.
Finally, the giant Dow Walmart (WMT) rose more than 1% on Tuesday as shares remained at 4% from a 151.43 buy point on a flat basis. The consumer staples company maintains a rating of RS 76 and a composite rating of 81. The company said on Tuesday it would release its third quarter results on November 17, before the market opens.
Coronavirus stocks sell out on vaccine news
Renewed expectations for a coronavirus vaccine continued to hurt many household stocks on Tuesday, including Focus on video communications (ZM), telemedicine provider Teladoc Health (TDOC) and Amazon.com (AMZN).
Zoom Video shares were down 9% on Tuesday after falling more than 17% on Monday. The stock is down nearly 24% for the week. Shares are now below the 50-day mark for the first time since early August.
Teladoc Health fell around 3% on Tuesday and is now down more than 16% for the week. The stocks are currently trading below the 50 day and 200 day lines.
Finally, Amazon’s stock fell more than 3% and is also trading below its 50-day line. Stocks fall further and further from a buy point of 3,552.35 after a consolidation.
On Monday, investors became very optimistic about a promising Covid-19 vaccine candidate from Pfizer (PFE) and BioNTech (BNTX).
Follow Rachel Fox on Twitter at @foxonstocks for more market information and reviews from Dow Jones.
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