Banking

Dow Lags, Nasdaq Extends Gains; Microsoft Breaks Out

The Dow Jones Industrial Average traded near its highs in late-afternoon trading on today’s stock market but failed to turn positive. Meanwhile, the Nasdaq and S&P 500 were higher, as was the small-cap Russell 2000 index.




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Stock Market Today

At the close, the tech-heavy Nasdaq composite was up more than 0.8%. The Dow Jones fell 0.1%, after paring even bigger losses. The S&P 500 rose over 0.3%, while the Russell 2000 gained less than 0.1%. Early data showed volume was running lower on the Nasdaq and on the NYSE vs. the same time on Friday.

Stocks were mixed on Monday. Late Sunday, China reported that its economy grew 4.9% in Q3 on a year-over-year basis. This was much slower than the second quarter’s growth rate of 7.9%. Power shortages and supply-chain issues weighed heavily on China’s economy and were listed as main factors in the economic slowdown.

The Shanghai composite fell 0.1%. The Hong Kong Hang Seng climbed 0.3%.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 35259.01 -35.75 -0.10
S&P 500 (0S&P5) 4486.39 +15.02 +0.34
Nasdaq (0NDQC ) 15021.81 +124.47 +0.84
Russell 2000 (IWM) 225.07 -0.09 -0.04
IBD 50 (FFTY) 49.55 +1.07 +2.21
Last Update: 4:08 PM ET 10/18/2021

Dow Jones Winners And Losers

West Texas intermediate crude oil futures slid in the afternoon after moving above $83 per barrel on Monday — the highest level since 2014. The commodity closed 0.1% higher and hovered slightly above $82 a barrel. Meanwhile, the benchmark 10-year Treasury yield broke back above 1.6% briefly but settled around 1.58%.

Stocks leading the upside in the Dow Jones included Home Depot (HD), Microsoft (MSFT) and Goldman Sachs (GS). Goldman Sachs continued higher after shares rose in heavy volume last Friday on better-than-expected earnings.

Goldman shares are less than 2% away from a new 420.86 buy point in a flat base.

Meanwhile, Microsoft stock broke out after rising 1% on Monday. Shares traded above a 305.94 entry point in a new flat base. The breakout appeared strong as the stock’s RS line reached a new high, according to MarketSmith analysis.

Investors should note that Microsoft is set to report Q1 earnings on Oct. 26 after the market closes.

Home Depot also led the upside with a gain of 1.4%. Shares traded near the upper edge of a buy zone from a 338.65 flat base entry.

On the downside, Dow Jones stocks Disney (DIS) and Amgen (AMGN) weighed on the index. Amgen fell around 2.2% amid a sell-off in health care stocks. Merck (MRK) and UnitedHealth Group (UNH) also shed 1.5% and 0.8%, respectively.

Disney stock fared the worst with a 3% decline in heavy volume. Barclays downgraded its rating to equal weight from overweight and lowered its price target to 175 from 210. The media and theme parks giant has been unable to reclaim its 50-day line for much of the past month.

These Growth Stocks Break Out

The growth-focused Innovator IBD 50 ETF (FFTY) held above its 21-day and 50-day moving averages on Monday and rose 2.2%.

Elsewhere, a handful of stocks in the MarketSmith Growth 250 scored breakouts, including chip stock Advanced Micro Devices (AMD), which gained nearly 4%. Elsewhere, computer software security stock Fortinet (FTNT) broke out from a new base.

AMD broke out from a 114.59 double-bottom base’s buy point, according to MarketSmith analysis. Shares remained inside the 5% buy area in afternoon trading. This stock’s RS line ticked up, a bullish sign. Meanwhile, the company holds a Relative Strength Rating of 87 and a perfect Composite Rating of 99.

Fortinet rose above a 322.10 flat-base entry in a strong-looking breakout. The stock rose more than 3.6% as the RS line reached a new high alongside the breakout. The RS Line Blue Dot list on MarketSmith identifies stocks whose relative strength lines are hitting new highs, while the stock is building a new base or breaking out past a new buy point.

The RS line measures a stock’s price performance vs. the S&P 500 and is the blue line on every IBD chart.

Follow Rachel Fox on Twitter at @rachelgfox more Dow Jones and stock market commentary.

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