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Dow Jones Falls 138 Points, But P&G Earnings A Bright Spot; Nasdaq Resilient Despite Plunging Amazon Stock

The stock market today was under pressure in afternoon trading but off session lows. A sales miss from Amazon.com (AMZN) weighed on the technology sector, but the Dow Jones Industrial Average held up pretty well, down just 0.4%. Procter & Gamble (PG) led the Dow Jones today, helped by news that revenue growth accelerated a touch from Q1, rising 7% to $18.9 billion vs. a 5% top-line increase in the first quarter.




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Amazon stock was off lows early Friday but still fell 7%. Revenue growth slowed from Q1 but still rose 27% to $113.1 billion. Still, that was below the Refinitiv consensus estimate of $115.2 billion. It forecast Q3 sales of $106 billion to $112 billion, below the consensus of $119.2 billion.

Amazon gapped below its 50-day moving average, weakening its technical picture considerably.

The Amazon news wasn’t good for internet retailer Etsy (ETSY), which plunged 7% ahead of next week’s earnings report.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 34946.33 -138.20 -0.39
S&P 500 (0S&P5) 4400.18 -18.97 -0.43
Nasdaq (0NDQC ) 14698.36 -79.91 -0.54
Russell 2000 (IWM) 221.24 -1.28 -0.58
IBD 50 (FFTY) 45.31 -0.44 -0.96
Last Update: 1:10 PM ET 7/30/2021

The Nasdaq 100 was down 0.4%, with Amazon, Skyworks Solutions (SWKS), eBay (EBAY) and PayPal (PYPL) among the worst performers.

The Nasdaq composite moved off lows after another test of the 21-day exponential moving average. The S&P 500 eased 0.4% and is still holding above its 10-day moving average.

Dow Jones Today

Besides Procter & Gamble, Cisco Systems (CSCO) also held up well. Cisco stock is near highs as it tries to break out from a flat base with a 55.45 entry.

Honeywell (HON) is also near the top of a shallow base with a 234.12 entry.

Caterpillar (CAT) and Boeing (BA) were among the worst performers in the Dow Jones today.

The selling continued in Caterpillar despite news that Q2 profit jumped 105% from the year-ago quarter. Revenue climbed 29% to $12.9 billion. Caterpillar is once again testing its 200-day moving average, a longer term support level.


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Boeing, meanwhile, gapped up Wednesday on strong Q2 results. But the stock got turned away at its 50-day moving average. Sellers were back in the stock Friday, sending shares lower by 2%.

Outside the Dow Jones

The MarketSmith Growth 250 served up plenty of bullish gainers, including enterprise software firm Atlassian (TEAM). Shares gapped up and soared more than 20% after the company reported earnings and gave a bullish outlook. Atlassian showed picture-perfect price action after its June 17 breakout, trading sideways and holding gains above the 250 level.

In the chip-equipment group, KLA Corp. (KLAC) gapped up on news fiscal Q4 earnings and sales growth accelerated from Q3. The stock is still inside a 16-week consolidation, only 4% off its high.

The Innovator IBD 50 ETF (FFTY) performed mostly in line with the market, down around 0.7%.

Some growth stocks in the IBD 50 outperformed, including Global-E Online (GLBE). The recent IPO jumped to a new high, rising 4%.

Another recent IPO, security software firm SentinelOne (S), also jumped to a new high but gains faded in afternoon trading.

The company sports excellent growth in the top line, despite posting new losses. Sales jumped 103%, 96% and 108% vs. year-ago levels in the past three quarters.

Follow Ken Shreve on Twitter @IBD_KShreve for more stock market analysis and insight.

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