Stock Market Quiet But 3 Dow Stocks Rise From Support Levels

The stock market cooled off some more Wednesday morning, with indexes narrowly mixed in the first hour of trading. Trading this week is the slowest pace of the year.

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After a solid four-day rally, the stock market indexes are slowing down this week.

The S&P 500 edged up 0.2% and is on track for a new closing high. The Nasdaq composite eased 0.1%.

The Dow Jones Industrial Average rose 0.3%. Dow stocks were quiet, too. Nike (NKE) rose 1.5% and climbed back above its 50-day moving average. While that doesn’t mean much, the stock is forming a new base with a 179.20 buy point. Home Depot (HD) and Microsoft (MSFT) continue to climb from their 50-day lines.

Volume on both the NYSE and Nasdaq was nearly unchanged from the same time on Tuesday. Volume is drying up this week, which is not entirely surprising for the holiday season. Still, trading totals are unusually low.

NYSE volume totaled less than 2.6 billion shares Monday and Tuesday, the lowest daily trading all year and even lower than on the half session after Thanksgiving. Nasdaq volume dwindled to 3.7 billion shares Monday and 3.588 billion Tuesday. That’s close to the 3.5 billion shares on the day after Thanksgiving.

IBD 50 Beating Stock Market

Innovator IBD 50 ETF (FFTY) climbed 0.5%, outperforming the main indexes.

Seagate Technology (STX), a new company in the index, rose more than 1% and is heading toward the 117.03 buy point of a cup base. The relative strength line is already at new highs, which would bolster a potential breakout and makes the computer storage drive maker one to watch.

Alphabet (GOOGL) was little changed but is doing a good job forming its latest base. The parent of Google and YouTube is in a flat base with a 3,019.43 buy point. The relative strength line, however, is dipping.

Zscaler (ZS) fell more than 2% and is back below the 50-day moving average, where the cybersecurity stock has met resistance all month.

Harmony Biosciences (HRMY) fell nearly 2%. After rising past the 44.49 buy point, the biotech has been weakening. So far, there’s no sell signal.

EV Stocks On The Move

There was activity in the electric-vehicle and self-driving industries, and it wasn’t just Tesla (TSLA).

IBD’s alternative energy industry group fell 0.5% after Plug Power (PLUG) dropped 2%. The maker of fuel cell energy systems may be falling in sympathy with FuelCell Energy (FCEL), which posted a larger than expected quarterly loss and a decline in revenue. FCEL stock, which traded near 30 in February, plunged 17% today to below 5 a share.

Rivian (RIVN) fell 3%. The electric pickup truck maker had been rebounding after falling to an all-time low of 88.40 on Dec. 20.

In volatile trading, TuSimple (TSP) reversed lower to a loss of nearly 5%. The autonomous driving technology company said this morning it successfully completed the world’s first fully autonomous semi-truck run on public roads without a driver or human intervention. The experimental truck traveled from a rail yard in Tucson, Ariz., to a distribution center in the Phoenix area, about 80 miles on surface streets and highways during the night.

Tesla CEO Elon Musk exercised the final batch of a package of vested Tesla stock options, The Wall Street Journal reported. Musk has now exercised more than 22.8 million stock options since he began making the transactions last month. The combined share sales reached a value of more than $16 billion, the Journal said.

Tesla stock eased 0.4% and continues to form a double-bottom base.

Juan Carlos Arancibia is the Markets Editor of IBD and oversees our market coverage. Follow him at @IBD_jarancibia

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