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Dow Jones Dips; Donald Trump SPAC Explodes; Tesla Stock Nears Buy Point As Demand Surges

The Dow Jones Industrial Average fell as IBM (IBM) sunk on earnings. Tesla (TSLA) neared a new buy point after spiking on earnings. A SPAC linked to former President Donald Trump exploded, with trading halted multiple times. It rocketed on news that he is to launch a social media service.




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Meanwhile, a trio of stocks managed to pass buy points despite the mixed action: Ford Motor (F), Match.com (MTCH) and Bath & Body Works (BBWI).

Nasdaq Gains As Growth Stocks Lead

The tech-heavy Nasdaq was the only major index in positive territory, and was benefiting from Tesla’s strong performance. The composite was up 0.4%. The best performers were Match.com, which rose nearly 9%, and Peloton Interactive (PTON).

The S&P 500 was slightly negative, but basically flat. Long-Term Leader Pool (POOL) and HP (HPQ) were among the stronger names here.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 35492.28 -117.06 -0.33
S&P 500 (0S&P5) 4535.71 -0.48 -0.01
Nasdaq (0NDQC ) 15176.89 +55.21 +0.37
Russell 2000 (IWM) 227.66 +0.29 +0.13
IBD 50 (FFTY) 49.92 +0.52 +1.05
Last Update: 1:26 PM ET 10/21/2021

The S&P sectors were mixed, with a bias to the downside. Consumer discretionary and real estate turned in the best gains, while materials and energy lagged.

Small caps were moving higher, but lagged the Nasdaq. The Russell 2000 was up about 0.1%.

However, it was growth stocks that were having the most joy, with the Innovator IBD 50 ETF (FFTY) rising more than 1%.

Dow Jones Dips As IBM Stock Crashes

The Dow Jones Industrial Average slipped 0.3%, retreating slightly from record levels.

IBM stock was the worst Dow laggard after the stock was punished following its latest results. While earnings of $2.52 per share were slightly better than expected, revenue came in below views.

The fact that the firm’s cloud business is seeing some weakness spooked investors. There was also a reduction in client spending.

Meanwhile, Nike (NKE) and Home Depot (HD) were the top upside performers on the Dow Jones today. Nike was up nearly 2%, while HD stock gained just over 1%.

Tesla Stock Nears Buy Point Amid Demand Surge

Tesla stock is nearing a new buy point after posting an earnings beat. It was another record quarter for the firm. While revenue slightly missed the FactSet analyst estimate, it edged past some other forecasts.

TSLA stock is nearing a new 900.50 buy point from a deep cup base, according to MarketSmith analysis. It had offered multiple other entries during the consolidation.

Wedbush Securities analyst Daniel Ives, who rates the stock as outperform, hiked his price target from 1,000 to 1,100. However, he said there is a bull case for the 1,500 level.

In a note to clients he said “the green tidal wave hits its next gear into 2022 with Tesla leading the charge.”

“Tesla has a supply issue which will soon be resolved with EV demand robust globally and the long awaited margin story now taking hold,” he added.

He previously estimated China will represent 40% or more of global deliveries for Tesla, making the region key for the stock’s longer-term bull thesis.

Donald Trump SPAC Explodes Amid Social Media Move

A listed special purpose acquisition company linked to former President Donald Trump exploded on the news that he plans to launch a social media company.

The new Trump Media & Technology Group will go public via a merger with Digital World Acquisition (DWAC).

The firm is to launch a social media site named Truth Social. There will also be a subscription-based video-on-demand service to be called TMTG+.

Trump said the latter service “will feature ‘non-woke’ entertainment programming, news, podcasts, and more.”

DWAC stock soared over 300%. Donald Trump has seen his access to key social media networks such as Twitter severely curtailed since the Jan. 6 Capitol protests.

Ford Stock Leads Names Passing Buy Points

Ford passed a buy point from a 16.55 cup-base entry, according to MarketSmith analysis. The pattern has been forming since early June. It currently sits just below the buy point.

The stock has been moving higher following an analyst upgrade. Credit Suisse analyst Dan Levy sees a favorable cycle into 2023, as Ford rebuilds low vehicle inventory.

Match.com briefly topped an entry of 174.78 in a high-volume move. It now sits a smidgen below the buy point.

The dating app firm is reporting earnings in 12 days, which adds risk. Earnings performance is also poor overall.

Bath & Body Works sits in a buy zone after topping a shallow double-bottom base entry of 69.19. The stock’s relative strength line has just hit fresh heights, which is a positive.

Stock market performance in particular has been a strength for the retailer over the past 12 months.

 

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