The Dow Jones Industrial Average remained lower in today’s stock market, while the S&P 500 and Nasdaq also traded lower after only a moderate recovery from session lows. The major indexes each lost over 1% apiece and fell below key areas of support.
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Dow Jones Today
At the close, the Dow Jones industrials were down around 1.2%. The Nasdaq composite also lost 1.2% while the S&P 500 fell 1.1%. Meanwhile, the Russell 2000 led on the downside, with losses of nearly 1.5%. Early data showed volume was running lower on the Nasdaq and on the NYSE vs. the close on Friday.
Stocks extended their losses from Friday as the indexes all lost the upward momentum from last week’s surprise Federal Reserve announcement. On Monday, the Nasdaq undercut the low on Dec. 3, which signals that the current rally is no longer in play. The distribution day from Friday served as an early hint to investors that the follow-through day may not hold up this time.
Investors should read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors. Elsewhere, the Dow Jones average 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.
The 10-year Treasury bond yield rose slightly from Friday’s lows of around 1.38% to nearly 1.42% on Monday.
U.S. Stock Market Today Overview |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 34932.09 | -433.35 | -1.23 |
| S&P 500 | (0S&P5) | 4568.18 | -52.46 | -1.14 |
| Nasdaq | (0NDQC ) | 14980.94 | -188.74 | -1.24 |
| Russell 2000 | (IWM) | 212.00 | -3.14 | -1.46 |
| IBD 50 | (FFTY) | 42.31 | -0.61 | -1.42 |
| Last Update: 4:18 PM ET 12/20/2021 | ||||
As for stocks in the Dow Jones index, several fell more than 2.5% each, including Nike (NKE), American Express (AXP), and Goldman Sachs (GS). Shares of Nike lost around 2.7%. The company is set to report earnings after the close today and was featured in the latest Earnings Preview story.
According to IBD data, analysts expect the firm to earn 63 cents a share on revenue of $11.2 billion. This would represent a year-over-year EPS decline of 19% while sales are roughly the same as they were in the same period a year ago.
Shares of Nike continue to fall below the bottom edge of its current flat base. Last week, shares crossed below their 50-day line, a sign of weakness. The stock is currently nearing the 200-day line.
Elsewhere, Goldman Sachs lost around 2.7% and gapped down below the 200-day line, a very bearish sign. The Financial Select Sector SPDR Fund (XLF) also gapped down and is currently testing support at its 200-day line.
All S&P 500 sectors traded negatively on Monday, with consumer staples and utilities down the least.
Stocks Making Notable Moves
The Innovator IBD 50 ETF (FFTY), a growth-heavy index, declined 1.4%, outpacing the major indexes on the downside. The ETF remains well below the 50-day moving average, the 21-day exponential line, and the long-term 200-day moving average.
Despite heavy selling among technology names, stocks in the computer networking and telecom fiber optics industry groups have shown strength, including Arista Networks (ANET), Cisco Systems (CSCO) and Ciena (CIEN). Both Cisco and Arista Networks traded down less than 0.5% each while Ciena showed a 0.5% gain.
Ciena is currently trading inside a 20% profit zone from a 61.19 buy point. Meanwhile, Arista Networks is holding support above its 21-day line, a sign of strength, and is near a 134.24 buy point. Dow Jones stock Cisco is currently in a buy zone from a 58.73 double-bottom base.
Other growth stocks in the homebuilder-related industry groups are struggling, including Green Brick Partners (GRBK), D.R. Horton (DHI) and Toll Brothers (TOL). Green Brick Partners fell more than 3% and traded below its 21-day line. Homebuilders had been showing strength relative to other groups, but then fell close to 6% last week. Homebuilders were down another 1% in afternoon trading on Monday.
Follow Rachel Fox on Twitter at @rachelgfox for more Dow Jones and stock market commentary.
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The post Dow Jones Falls As Nike Stock Drops Ahead Of Earnings; Networking, Fiber Optics Stocks Show Strength While Homebuilders Struggle appeared first on Investor’s Business Daily.
