Dow Jones Dives 330 Points As Weak Retail Sales Hit Stocks, Home Depot Drops

Key market indexes were sharply lower midday Tuesday, as the Dow Jones Industrial Average dived more than 300 points amid weak retail sales, and a sharp drop in homebuilder confidence. A weak earnings report from Dow Jones stock Home Depot (HD) and the rollout in China of new rules for online competitors in China also influenced the session.


The Dow Jones industrials lost 1%, the Nasdaq fell 1.3%, and the S&P 500 gave up 1% in today’s stock market. Small caps tracked by the Russell 2000 shed 1.6%. Volume was lower on both major exchanges vs. the same time Monday.

Among exchange traded funds, Innovator IBD 50 (FFTY) sank 1.3%, while the Nasdaq 100-tracking Invesco QQQ Trust (QQQ) slid 1.3%.

Retail sales fell 1.1% in July from the prior month, the Commerce Department reported early Tuesday. That reversed June’s 0.6% increase and was worse than Econoday’s forecast for a 0.2% dip.

The U.S. economy continues to recover from the Covid-19 pandemic, which triggered nationwide lockdowns over a year ago. Most states had relaxed restrictions as vaccinations continued to roll out and cases decreased. But mask mandates are returning in some areas as the delta variant spreads.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 35285.77 -339.63 -0.95
S&P 500 (0S&P5) 4437.10 -42.61 -0.95
Nasdaq (0NDQC ) 14595.31 -198.45 -1.34
Russell 2000 (IWM) 215.29 -3.78 -1.73
IBD 50 (FFTY) 44.49 -0.74 -1.64
Last Update: 12:06 PM ET 8/17/2021

Cumulative Covid-19 cases worldwide are approaching 209 million, with nearly 4.4 million deaths, according to Worldometer. In the U.S., cases have topped 37 million with more than 638,000 deaths.

Although the numbers of new cases and deaths in the U.S. have decreased dramatically, cases are back on the rise in some states due to delta.

Growth Stocks To Watch

Global-e Online (GLBE) led the IBD 50 with a 12% surge in heavy volume. Late Monday, the Israel-based enterprise software maker beat Q2 revenue forecasts and raised its outlook for the current quarter and full year. GLBE stock went public on May 12, raising $375 million. It’s soared 172% since then.

Among other IBD 50 winners, Sea Ltd. (SE), Taskus (TASK) and Maravai LifeSciences (MRVI) rose more than 5% each.

Sea, a Singapore-based internet platform, is now extended from a 285.10 buy point of a 16-week consolidation, according to IBD MarketSmith chart analysis. The buy zone topped out at 299.36.

Moderna (MRNA) recovered more than 3% in healthy turnover after finding support at its 21-day exponential moving average. The stock is sharply extended from a 189.10 buy point of a cup with handle cleared in June.

U.K. health officials on Tuesday approved the biotech’s Covid-19 vaccine for 12- to 17-year-olds. The Pfizer (PFE)/BioNTech (BNTX) vaccine was approved several weeks ago.

Celsius (CELH), Crocs (CROX) and Rent-A-Center (RCII) led the IBD 50 downside with losses greater than 5% each.

Dow Jones Losers And Winners

Home Depot and Walmart (WMT), which reported earnings ahead of the open, went in opposite directions.

Home Depot stock gapped down and stumbled nearly 5% in heavy trade to undercut its 50-day moving average for the first time in almost a month. Shares closed Monday above a 333.55 buy point of a cup with handle. They’re now about 4% below the entry.

The building products chain reported fiscal Q2 earnings of $4.53 a share on sales of $41.1 billion. Analysts expected $4.43 a share on $404 billion in sales, so both topped views. But U.S. same-store sales came in a little light amid fewer do-it-yourself customers.

Walmart climbed 0.8% after its quarterly results beat targets. The discount giant earned $1.78 a share on revenue of $141 billion, vs. forecasts for $1.57 EPS on sales of $136.7 billion. Walmart stock is building the right side of a cup base with a 153.6 buy point.

Among other blue-chip gainers, UnitedHealth (UNH) and Merck (MRK) advanced about 1% each.

But Boeing (BA), Caterpillar (CAT) and Dow Inc. (DOW) fell more than 1.7% apiece.

Follow Nancy Gondo on Twitter at @IBD_NGondo


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