Banking

Dow Jones Sells Off While Nasdaq Turns Positive, Hits New High; Apple Trades In Buy Zone As These Growth Stocks Break Out

The Dow Jones Industrial Average traded lower in today’s market but closed off its lows of the day. Meanwhile, the S&P 500 also closed in the negative after moving off intraday lows. The Nasdaq composite turned positive in late afternoon trading and closed near its high.




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Stock Market Today

At the close, the Nasdaq held a gain of 0.2% and reached a new high of 14,687. Meanwhile, the S&P 500 traded 0.2% lower. The Dow Jones industrials declined 0.6%, falling more than 200 points. The small-cap Russell 2000 index lagged, selling off more than 1.3%. Volume was running higher on the NYSE and on the Nasdaq vs. the close on Friday, according to early data.

Early Monday, stocks sold off as the Dow Jones shed more than 400 points at around 11 a.m. ET. But shares rebounded midday, while big tech led the upside. Amazon (AMZN) and Apple (AAPL) gained roughly 4.7% and 1.5%, respectively.

Amazon broke out past a key buy point Tuesday morning after gapping up into the buy zone of a cup-with-handle base. The proper entry was at 3,524.96, and the 5% buy zone tops out at 3,701.20. Founder Jeff Bezos officially stepped down as chief executive on Monday, after 27 years. Andy Jassy, CEO of Amazon Web Services, takes over as Amazon president and CEO.

Elsewhere, oil prices sank due to a breakdown in communications between OPEC+ members, with Saudi Arabia and the United Arab Emirates in the midst of it, earlier this week. Members remained in a stalemate over production cuts amid higher-than-usual energy demand during the pandemic recovery.

West Texas intermediate oil prices slid 2.3% to $73.47 a barrel near Tuesday’s close, after briefly spiking to a six-year high of $76.98.

Growth stocks traded lower as the Innovator IBD 50 ETF (FFTY) closed down 0.3%. Shares traded back below support at the 50-day line, a bearish sign. Stocks leading the downside included two foreign fintech stocks, Up Fintech (TIGR) and dLocal (DLO).

Dow Jones Today

Stocks underperforming in the Dow Jones on Tuesday included chemicals firm Dow Inc. (DOW), which fell 2.5% as it shapes the bottom of a flat base. Shares are trading 14% below a 71.48 buy point, according to MarketSmith chart analysis.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 34581.45 -204.90 -0.59
S&P 500 (0S&P5) 4343.60 -8.74 -0.20
Nasdaq (0NDQC ) 14663.64 +24.32 +0.17
Russell 2000 (IWM) 225.93 -3.26 -1.42
IBD 50 (FFTY) 44.73 -0.12 -0.27
Last Update: 4:22 PM ET 7/6/2021

Dow industrial and banking firms were also lower. Caterpillar (CAT), 3MGoldman Sachs (GS) and JPMorgan (JPM) all traded down more than 1% each.

On the upside, Apple stock is now trading inside the buy zone of a cup base with a buy point of 137.17, according to MarketSmith chart analysis. The stock broke out last week but slipped back below the buy area. Now, shares are trading near the upper edge of the buy zone, which tops out at 144.02.

In recent weeks, Apple stock reclaimed its 50-day line, a bullish sign. The stock’s RS line has also turned higher.

On Tuesday, JPMorgan raised its price target on the iPhone maker to 170 from 165 and maintained an overweight rating.

Elsewhere, Microsoft closed at breakeven and remains barely extended from the buy zone of a 263.29 cup base entry. Microsoft stock, which was up nearly 5% last week, got a boost after unveiling its new Windows 11, which offers a range of performance and usability improvements.

Stocks In The News

On Tuesday, a small handful of growth stocks broke out and traded inside buy zones. IPO stock Monday.com (MNDY) broke out from a 237.60 entry in an IPO base. Shares closed just below the proper base, despite gaining roughly 1.5% in afternoon trading.

Meanwhile, e-signature solution software maker DocuSign (DOCU) broke out from a long consolidation pattern and traded above the buy zone from a 290.33 entry.

But shares pared earlier gains in afternoon trading and closed below the buy area. The stock is definitely one to watch as its RS line is nearing new highs. The firm also maintains a perfect 99 Composite Rating.

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