Dow Jones closes lower, Nasdaq leads lower; Chip equipment inventories trade in buy zones in the middle of the sale

The Dow Jones Industrial Average fell in today’s stock market and extended its losses from the previous week. The Nasdaq also traded lower and drove the markets lower.

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The Dow Jones on the stock market today

The Nasdaq composite lost 2.2%. The Dow Jones lost 1.8%, while the S&P 500 fell 1.7%. The Russell 2000 Index closed down 2.3%. Early data showed lower volume on the NYSE and higher volume on the Nasdaq from Friday’s close.

The major indices traded lower on Monday amid the threat of a possible default by a major Chinese real estate company. In addition, the ongoing debates over the still unresolved debt ceiling in Washington weighed on the indices.

Chinese real estate developer Evergrande Group is the most indebted real estate developer in the world. Last month, he warned of a possible default on his obligations of more than $ 300 billion to his creditors. To make matters worse, an interest payment deadline for its offshore bonds arrives on Thursday. Shares fell in Asia, Europe and the United States. The Vix, a measure of volatility, hit its highest level since May.

S&P sectors were all trading lower on Monday, with utilities and real estate posting the smallest losses. Financial stocks were among the worst performers, with the Financial Select Sector SPDR Fund (XLF) losing 2.3%.

Growth stocks fell sharply on Monday, after outperforming last week. The Innovator IBD 50 ETF (FFTY) lost 2.7% and is now back below a buy point of 50.06 after gaining support at the 21-day exponential moving average last week.

Underperforming stocks in the included index Proximity (DOCS) and Global-e online (GLBE), who lost more than 10% and 8%, respectively.

In the Dow Jones, Apple (AAPL) was among the worst performers, falling more than 2%. Stocks lost support at the key 50-day moving average last week, which is a signal to sell. The tech giant has struggled even after releasing its new iPhone last week.

During this time, Nike (NKE) also traded lower with a decline of around 1.3% after a few days of decline. The shares are trading below the lower edge of a new flat base with a buy point of 174.48 and are 12% below this appropriate entry. The stock also fell below its key 50 and 200 day lines in August, a bearish sign.

Nike plans to release its first quarter 2022 results on September 23. According to data from IBD, the footwear and sportswear giant is expected to post 18% year-on-year profit growth to $ 1.12 per share. Sales are expected to increase 18% to $ 12.46 billion.

Chip Stocks Marking Mid-Selling Breakouts

A few growth stocks still managed to break out and / or negotiate buying zones on Monday, notably Brooks Automation (BRKS) and Entégris (ENTG).

Brooks Automation scored a breakthrough from a cut base on Monday. The ideal buy point was 104.41. The stock closed slightly below the buy zone. The shares rose almost 9% in high volume. The stock belongs to the semiconductor equipment industry group, which has recently shown strength and ranks No. 46 out of the group’s 197 IBD tracks.

Meanwhile, Entegris, another semiconductor equipment stock, also traded inside a buy zone on Monday. Shares broke last week from a flat base with 126.51 buying points. The stock remained in the buy zone on Monday, despite falling around 2.5%. Entegris boasts an almost perfect composite rating of 98 and a rising RS line.

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

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