Sellers were in the stock market again Monday after the Nasdaq composite slumped nearly 3% last week in heavy volume. The Dow Jones Industrial Average swooned 600 points as several Dow Jones stocks fell 3% or more, including Goldman Sachs (GS), Caterpillar (CAT), Travelers (TRV) and Nike (NKE).
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The Dow Jones industrials fell sharply below the 35,000 level as the blue-chip index nears another test of its 200-day moving average, a long-term support level.
Nike, which reports earnings after the close today, is also close to a test of its 200-day line after finding support there in early October. The Dow Jones stock was featured in the latest Earnings Preview story.
GS stock gapped below its 200-day line in the Dow Jones today as it struggles to find a bottom. The Financial Select Sector SPDR Fund (XLF) also gapped down and is currently testing support at its 200-day line.
Outside The Dow Jones
The Nasdaq composite fell nearly 1.8% and undercut its Dec. 3 intraday low, effectively killing its latest rally. The index confirmed a new uptrend last week when it soared 2% in higher volume on Wednesday. But a distribution day Friday immediately called the follow-through day into question. Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.
U.S. Stock Market Today Overview |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 34753.00 | -612.44 | -1.73 |
| S&P 500 | (0S&P5) | 4544.89 | -75.75 | -1.64 |
| Nasdaq | (0NDQC ) | 14904.63 | -265.05 | -1.75 |
| Russell 2000 | (IWM) | 209.51 | -5.63 | -2.62 |
| IBD 50 | (FFTY) | 41.81 | -1.11 | -2.59 |
| Last Update: 1:18 PM ET 12/20/2021 | ||||
The Invesco QQQ Trust (QQQ), which tracks the Nasdaq 100, also fell below its Dec. 3 low, down more than 1.6%. Sellers hit China-based stocks again, including Pinduoduo (PDD), Trip.com (TCOM) and JD.com (JD).
Tesla (TSLA) also took a hit in the Nasdaq 100, down 3.4%. A Leaderboard model portfolio that once held 20+ growth stocks now holds just seven names, including Tesla stock.
Despite persistent selling in the technology sector, networking stocks like Arista Networks (ANET), Cisco Systems (CSCO), Extreme Networks (EXTR) and Ciena (CIEN) continue to show strength.
Arista is a new Leaderboard name.
Meanwhile, a few semiconductor stocks like Silicon Motion Technology (SIMO), Broadcom (AVGO), and Marvell Technology (MRVL) are also holding up well amid the selling in the broad market.
Pfizer (PFE) and AbbVie (ABBV) held up well again in the S&P 500, but the index was still down 1.6%. The Russell 2000 small-cap index slumped nearly 2.7%.
Breadth was weak again, with Nasdaq decliners outnumbering advancers by a nearly 5-1 ratio. Losers topped winners on the NYSE by 7-to-1.
When It’s Time To Sell Your Favorite Stock
Growth Stocks Hit Again
Sellers hit top-rated growth stocks again, sending the Innovator IBD 50 ETF (FFTY) down another 2.4%. The bear market in growth stocks has been undeniable, with FFTY now 20% off its high.
Homebuilder Green Brick Partners (GRBK) was one of the worst performers in the IBD 50, down more than 5%. Homebuilders had been showing relative strength in the stock market, but the group fell 5.6% last week and was down another 1% in afternoon trading. Recent technical breakouts for D.R. Horton (DHI) and Toll Brothers (TOL) don’t look so good anymore.
Inside the MarketSmith Growth 250, buyers pushed Sprouts Farmers Market (SFM) higher again. Volume really picked up in the stock Friday, but SFM stock pared a 2.7% intraday gain to just 0.1%. It was classing stalling action after a low-volume breakout over a 27.71 buy point.
Oil and gas producers lagged again in the MarketSmith Growth 250, with names like Diamondback Energy (FANG) and Devon Energy (DVN) down more than 4%. At the New York Mercantile Exchange, WTI crude oil futures were down 5% to around $67.22 a barrel.
Follow Ken Shreve on Twitter @IBD_KShreve for more stock market analysis and insight.
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