The Dow Jones Industrial Average fell, but closed off lows, as the stock market struggled. Federal Reserve Chairman Jerome Powell has ordered an ethics review after several senior officials disclosed large trades. Apple (AAPL) and Microsoft (MSFT) fell, but Goldman Sachs (GS) was the worst blue chip laggard.
Meanwhile, Leaderboard stock Deckers Outdoor (DECK) passed a buy point amid strong retail data. A few other stocks managed to offer up entries, despite the bearish action. Adobe (ADBE) is rebounding, while SVB Financial (SIVB) and Star Bulk Carriers (SBLK) tested buy points.
Indexes struggled after the Labor Department reported initial unemployment claims rose to 332,000 last week from a pandemic low of 312,000 a week earlier. This was worse than economists expected, with the Econoday consensus estimate coming in at 315,000 claims.
Powell Orders Ethics Review
It also emerged Thursday that Federal Reserve Chairman Jerome Powell has ordered staff to review its ethics rules after several Fed presidents disclosed sizable investments.
It comes after Democrat Senator Elizabeth Warren sent letters to the Fed’s regional bank presidents asking for stricter ethics on stock buying.
A Federal Reserve spokesman told CNBC that Powell has ordered a “fresh and comprehensive look at the ethics rules around permissible financial holdings and activities by senior Fed officials.”
Federal Reserve regional presidents Robert Kaplan and Eric Rosengren last week said they would sell individual stock holdings due to ethics concerns over their trading in 2020.
Nasdaq Rallies As Growth Stocks Jump
The Nasdaq rallied out of the red, and managed to close with a gain of 0.1%. Diabetes treatment play Dexcom (DXCM) was one of the best performers, rising about 2.5%. Truck maker Paccar (PCAR) fell hardest, dipping 2.5%.
The S&P 500 closed lower, but well off lows. It gave up 0.2%. The index is continuing to find support at its 50-day moving average. American Airlines (AAL) and Etsy (ETSY) fared best, rising about 3% each.
U.S. Stock Market Today Overview
Last Update: 4:02 PM ET 9/16/2021
The S&P sectors were mostly negative, with consumer discretionary and technology among the few areas to inch higher. Materials and industrials ended up being the worst laggards.
Small caps were managing to buck the downward pressure, with the Russell 2000 posting a slim gain of 0.1%.
But it was growth stocks that really stood out, with the Innovator IBD 50 ETF (FFTY) rising 2%.
Dow Jones Today: Apple Stock Dips, Microsoft Gains
The Dow Jones Industrial Average closed well off lows, finishing with a loss of 0.2%.
Apple stock was among the laggards, but its 0.2% loss was easily clear of intraday lows. It managed to hang in above a trendline entry around 148. It’s also trying to stay above the 50-day line.
The Leaderboard stock has been falling, despite unveiling its new iPhone 13 and other product updates on Tuesday. The company showed off four new iPhone models, which are incremental upgrades to last year’s iPhone 12 series. It also showed off new versions of the Apple Watch and the iPad.
Microsoft stock, meanwhile, rallied out of the red to gain 0.1%. It remains well extended past a 263.29 buy point.
Goldman Sachs was the biggest loser on the Dow Jones today. It gave up more than 1%, and finished near session lows. It is now seeking support at its 50-day line, even as it sits in a buy zone from a long-in-the-tooth flat base entry of 393.36, according to MarketSmith analysis.
Leader Tests Buy Point Amid Strong Retail Data
Deckers Outdoor stock managed to briefly move above a flat base ideal buy point of 444.58. But it closed below the entry.
It remains in a buy zone from an aggressive entry after previously crossing a mini-trend-line near 433.
The relative strength line has just hit a new high, which is encouraging. This measures a stock’s performance compared to the S&P 500.
The stock was boosted after U.S. retail sales rose 0.7% in August, spanking analyst estimates for a 0.8% decline, according to Econoday’s estimates.
Bullish recent action saw Deckers stock added to the prestigious IBD Leaderboard list of leading growth stocks. Earnings are a key highlight, with its EPS Rating coming in at a perfect 99.
These Stocks Pass Entries
Adobe stock is offering a rebound entry as it find support at the 10-week line. Its long uptrend came under pressure but could be getting back on track. The Leaderboard stock remains well extended from its most recent base buy point of 525.54.
SVB Financial is sitting just under a buy zone after trying to break out of a flat base. The ideal entry here is 608.94. This stock offers a strong mix of technical and fundamental performance.
While it is known as the “bank to the tech stars,” SVB Financial also serves venture capital and private equity firms investing in the tech and biotech fields. It also offers private banking services for high-net-worth individuals.
Star Bulk Carriers sits a hair below its buy zone after peaking above a cup-with-handle entry of 24.99.
Greece-based Star Bulk Carriers owns and operates a global fleet focusing on the transportation of dry bulk cargoes. The company’s vessels transport major bulk goods, including iron ore, coal and grain, as well as minor bulks such as fertilizers and steel products.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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