Stocks geared toward leisure, travel, banking and consumer spending were trampled on the stock market today as Wall Street focused on Texas’ decision to halt the reopening of its economy. In mid-afternoon trading, the Dow Jones Industrial Average sank close to 600 points, or 2.3%, and traded near a session low of 25,054.
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The Dow Jones also appeared poised for an institutional buy support test on its 50-day moving average.
Meanwhile, the drop in stocks outnumbered gains by a 5-1 margin on the New York Stock Exchange. On the Nasdaq, the losers beat the winners by more than a 4-1 ratio.
Volume is running 15% higher compared to the same time on Thursday on the Nasdaq and has increased 1% on the NYSE.
Nike (NKE) and other Dow 30 components Goldman Sachs (GS) and JPMorgan Chase (JPM) walked lower. Nike reported a net loss of 51 cents a share in the fiscal fourth quarter as sales fell 38% to $ 6.31 billion.
Read more about Nike and its rivals in an ever-evolving apparel and sports equipment market in this snapshot of the IBD industry.
Dow Jones Analysis
Let’s take a look at a daily chart of the Dow Jones, or its tracking ETF, SPDR Dow Jones (DIA). The red line means the average closing price of a stock or index in the last 50 sessions. And since it hit bottom in the third week of May, it has been rising, a good sign.
But a deep drop below the 50-day moving average, particularly at huge volume, would signal a new weakness in stocks and hint that it’s time to take your foot off the gas.
Summary of the US Stock Market Today |
||||
|---|---|---|---|---|
| Index | Symbol | Price | gain loss | % Change |
| Dow Jones | (0DJIA) | 25,224.54 | -521.06 | -2.02 |
| S and P500 | (0S and P5) | 3,032.28 | -51.48 | -1.67 |
| Nasdaq | (0NDQC) | 9853.77 | -163.23 | -1.63 |
| Russell 2000 | (IWM) | 137.97 | -2.48 | -1.77 |
| IBD 50 | (FFTY) | 33.85 | -0.55 | -1.60 |
Last Updated: 1:26 PM ET 06/26/2020 |
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Meanwhile, more distribution days, clear liquidations in higher turnover, would indicate that it is time to raise some money by reducing losses, reducing some gains in those stocks that have increased 20% to 25% or more from a pivot point. , and refrain from making new purchases.
That said, even though the 30-share Dow Jones is seeing a sharp weekly drop of over 2%, the blue-chip and other indices have shown a tremendous rebound (“unprecedented,” according to IBD Live panelists). in March. 23 min.
While the Nasdaq and S&P 500 fell 1.7% to 1.8% around 2 p.m. ET, the S&P SmallCap 600 fell 2.2%. The same is true for the Russell 2000. The NYSE Financial index fell 2.8% after the Federal Reserve banned monetary center banks from issuing new share buybacks and increasing their dividend payments based on the latest results of the resistance tests.
But several high-octane growth stocks showed resistance.
They include NetEase (NTES), a Chinese online gambling game, recently featured in the new daily show on investments, the stock market and major growth stocks, IBD Live.
The big limit earlier this week cleared a shelf pattern offering a buy point of 427.43. The initial breakup? It came in mid-May when NetEase cleared a buy point of 367.67 in a mug with a handle. In this case, the handle that formed after the butt broke the top left of the glass, a rarity.
Analysts surveyed by FactSet see NetEase earnings grow 9% from a year earlier levels to $ 4.43 a share in the second quarter, even as revenue falls 12% to $ 2.4 billion.
In the prior year quarter, earnings increased 43%. That created a harsh comparison year after year. The top line was up 11%.
Five More Fastest-Growing Stocks: Will They Hit The Dow Jones In 2020?
In the meantime, Quickly (FSLY), CrowdStrike (CRWD), Fortinet (FTNT) Netflix (NFLX) and Zoom Video (ZM) deserves additional attention due to its strong year-to-date earnings.
Zoom Video, highlighted in this Inside IBD 50 column, best represents the changes that the coronavirus has brought about in the way we work, live, and interact with people.
Netflix, up 46% to date, is testing a new purchase point of 459.07 on a flat, narrow basis.
Fortinet and CrowdStrike belong to the high-powered security software industry group. This group has been ranked in the top 20 among IBD 197 industry groups for six-month relative price performance for at least nine weeks in a row.
According to IBD Stock Control, CrowdStrike gets a composite rating of 97 on a scale of 1 (garbage) to 99 (juicy).
IBD Composite Rating looks at key fundamentals parameters (earnings growth, sales growth, profit margins, return on equity), technicalities (relative strength vs. S&P 500 and entire stock database of IBD) and quality of fund sponsorship (rate analysis increase among fund owners, and if the main funds buy stocks).
In a confirmed bullish market trend, focus on companies that have a composite rating of 95 or higher.
Check out the IBD Live archived videos last week for more information on what kind of new bullish chart pattern Fastly, a cutting-edge computing gamble, can develop once you take a break.
Follow Chung on Twitter at @SaitoChung and @IBD_DChung for more information on growth stocks, buy points, breaks, sell rules, and market insights.
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