Dow Jones Erases Gains As Indexes Move Off Intraday Highs; Apple Announces New Products At WWDC

The major indexes held modest gains in afternoon trading while the Dow Jones erased its early gains and traded down slightly. Investors turned their attention to Apple (AAPL) as the tech giant held its annual Worldwide Developers Conference on Monday.

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Dow Jones Today

The Dow Jones Industrial Average traded down 0.1%while the S&P 500 rose 0.2%. The small-cap Russell 2000 was also up 0.2%, alongside the Nasdaq composite. Volume was lower on the Nasdaq and on the NYSE vs. the same time on Friday.

From a technical perspective, the Dow Jones and other major indexes are still holding support at the 21-day exponential moving average, after trading tightly above this line for the past week. This will be an important area to watch. Ideally, the indexes will be able to stay above this level and power higher to reclaim their 50-day lines as well.

As for growth stocks, the Innovator IBD 50 ETF (FFTY) crept up another 0.3% as shares get closer to regaining support at their 50-day line for the first time since March.

Among S&P 500 sectors, consumer discretionary stocks outperformed while the real estate sector lagged, but was only down slightly. The technology sector initially outperformed and traded higher but erased gains in the afternoon.

The 10-year U.S. Treasury note increased 8 basis points to 3.02%, which is significant since the benchmark hasn’t closed above 3% since May 11.

Apple Announces New Products At WWDC

Dow Jones leader Apple announced several important new products and software updates during its WWDC conference on Monday. During the event keynote, which began at 1 pm ET, Apple demonstrated its latest software for the iPhone, iOS 16. It also revealed Apple Pay Later, its buy-now-pay-later product which initially sent shares of competitor Affirm (AFRM) down over 5% in notably heavy volume.

Apple also announced its new M2 chip, the 13-inch MacBook Pro with M2, the new MacBook Air with M2, macOS Ventura for Macs and more. Shares of Apple traded at around break-even, however, and erased earlier gains. The stock is attempting to regain support at its 21-day moving average after loosing support at this area amid the recent sell off.

The Technology Select Sector SPDR ETF (XLK) initially gained as much as 0.6%, before fading in afternoon trading to a loss of 0.1%.

Chemicals Stocks Outside Of The Dow Jones Break Out

Outside the Dow Jones industrials, two chemicals stocks in the MarketSmith Growth 250 index scored breakouts on Monday. Ashland Global (ASH) broke out above a 110.84 entry as its RS line notched a new high. But shares faded gains in afternoon trading. The stock still rose nearly 2% in heavy volume.

Elsewhere, Celanese (CE) also scored a breakout. The chemicals firm works with a wide variety of key chemical markets from aerospace to medical and pharmaceuticals.

Shares of Celanese, which just reclaimed their 200-day line in recent sessions, broke out above a 159.32 cup-with-handle entry. Volume was low in the breakout, which could be a cause for concern. But the RS line looked strong as it moved to new highs on Monday.

As for breakouts holding above their buy points in afternoon trading, shares of Chinese solar energy stock Jinko Solar (JKS) traded above a 66.47 entry off a six-month long consolidation. The stock remained within its 5% buy zone while its RS line hit a new high.

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

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