Dow Jones Reduces Anticipated Loss Fueled By China And Nike, But This Dow Stock Is In The Buy Range


Major stock indexes broke past midday session lows on Friday, as the Dow Jones Industrial Average erased most of an initial loss of 117 points.


The Nasdaq fell 0.3%, while the Dow Jones Industrials and the S&P 500 were roughly flat on the stock market today. Small caps followed by the Russell 2000 were down 0.3%. Volume was mixed, lower on the NYSE but higher on the Nasdaq from same time Thursday.

Among exchange-traded funds, Innovator IBD 50 (FFTY) fell 1.3%, while Invesco QQQ Trust (QQQ) followed by Nasdaq 100 fell 0.5%. The IBD 50 ETF hit a new high on Thursday and remains in the buy range from an entry of 50.06 on a seven-month consolidation.

Evergrande Group, China’s largest real estate developer, appeared to miss the deadline for a $ 83.5 million bond payment on Thursday. There is now a 30-day grace period before bondholders can report a default. Investors around the world fear a collapse could hit global markets, although reports indicate Beijing is taking action to contain the damage.

China has also banned Bitcoin and all other cryptocurrency transactions. Officials said the move was taken to further limit the risks of crypto trading and for the sake of security and social stability.

Snapshot of the US Stock Market Today

Index symbol Price Loss of profit % Switch
Dow jones (0DJIA) 34757.28 -7.54 -0.02
S&P 500 (0S & P5) 4449.16 +0.18 +0.00
Nasdaq (0NDQC) 15010.14 -42.10 -0.28
Russel 2000 (IWM) 224.22 -0.59 -0.26
MICI 50 (FFTY) 51.68 -0.66 -1.26
Last updated: 12:06 PM EST 9/24/2021

The price of Bitcoin fell more than 4% to $ 41,987 by noon, according to Coindesk. Grayscale Bitcoin Trust (GBTC), which tracks the price of bitcoin, has fallen more than 5%.

The US economy continues to recover from the Covid-19 pandemic, which triggered nationwide lockdowns more than a year ago. Most states have relaxed restrictions as vaccinations continue and cases decline. But cases are growing rapidly in some places again, and mask warrants are returning in some states as the delta variant spreads.

Cumulative Covid-19 cases around the world are approaching 232 million, with more than 4.7 million deaths, according to Worldometer. In the United States, cases topped 43 million with nearly 703,000 deaths.

Growth stocks to watch

In IBD 50, Outdoor Deckers (DECK) fell 9% in significant volume to fall below its 50-day moving average. On Thursday, the stock was approaching a buy point of 444.58 on a flat basis, according to MarketSmith chart analysis. The drop triggered the 7% to 8% loss reduction sell rule, leading to Deckers exiting the IBD rankings.

Among the other IBD 50 losers, Confluence (CFLT) and TaskUs (TASK) lost more than 6% each, while Cloudflare (NET) and SiTime (SITM) dropped more than 5% each.

Winners were rare in the IBD 50. In Mode (INMD) rose 3% to a new high, on track for a fourth consecutive gain. Leaderboard stock is well extended from a buy point of 104.39 on a pullback to the 10 week line.

Atkore (ATKR), up 2% in above-average trade, is approaching a buy point of 98.10 from a six-week consolidation on a daily chart from MarketSmith. It’s about 1% from the entrance.

Dow Jones Movers

Nike (NKE), the blue chip’s biggest loser, retreated and sank 7% in a quick turnover. The footwear and sportswear giant reported mixed financial results for the first quarter on Thursday evening as sales slumped due to headwinds in the supply chain. Analysts had expected earnings of $ 1.12 per share on sales of $ 12.47 billion, according to FactSet. Nike earned $ 1.16 on sales of $ 12.2 billion.

NKE stock is now around 15% below a buy point of 174.48 on a flat basis. If it falls further, the flat base pattern will no longer be intact. Stocks retreated after hitting a high of 174.38 on August 6. The stock fell below its 50 day line on September 2 and has been trading below since.

Other Dow stocks fell less than 1%, including Apple (AAPL) and Microsoft (MSFT), which gave up around 0.5% coin. Apple is still below its 50-day line despite a three-day winning streak during the week. On Monday, it hit its lowest level since early July.

Microsoft crossed its 50-day line after testing support on Monday. It was the first breach since a breakout on June 21 above a buy point of 263.29. (CRM) led the rise on the Dow with a 2% gain to a new high. The stock remains in the buy range starting at an entry of 275.32 from a cup with handle. The buy range peaks at 289.09. On Thursday, Salesforce erupted on a 7% rise 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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