Dow Jones Down As Nasdaq Reverses Higher; These REITs Trade Near Buy Points

The Dow Jones Industrial Average fell in today’s stock market while the S&P 500 also traded in the negative. Tech stocks, however, were well off their lows and swung between small gains and small losses in late afternoon trading.

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Dow Jones Today

At around 3 pm ET, the Dow Jones was down around 1%. The Nasdaq composite reversed higher 0.2% as the S&P 500 lost 0.5%. Meanwhile, the Russell 2000 also reversed its earlier losses to a 1.1% gain. Data showed volume was running higher on the Nasdaq and on the NYSE vs. the same time on Thursday.

Stocks sold off on Friday after a powerful move higher earlier this week that was caused by a surprise Federal Reserve announcement. The indexes remain in a state of flux and uncertainty after Wednesday’s follow-through day signaled the correction might be over. On the negative side, the Nasdaq has already undercut the low of the day on Wednesday, which signals that the follow-through day might fail.

But the Nasdaq was able to find support at the 15,000 level, another key level to watch. Nevertheless, the whipsawing action suggests investors remain cautious at this time. The 10-year Treasury bond yield fell to 1.38% early Friday and made a new 12-week low.

The Dow Jones led the indexes on the downside as several stocks fell more than 1% apiece. Retail giants Walmart (WMT) and Home Depot (HD) fell more than 1.7% each while bank stocks JPMorgan (JPM) and Goldman Sachs (GS) were the worst decliners. Shares in these money center banks dropped 2% to 3.5%.

The decline in bank stocks corresponded to a broad sell-off in financials. The financial Select Sector SPDR (XLF) was the weakest S&P sector ETF, down nearly 1.9% as it meets resistance at the 50-day moving average.

The only S&P 500 sectors trading in the positive on Friday were real estate, health care and commercial services.

Stocks Making Notable Moves

The Innovator IBD 50 ETF (FFTY), a growth-heavy index, traded near breakeven, outpacing the major indexes. Shares remain well below the 50-day moving average, the 21-day exponential line, and the long-term 200-day moving average. The market has certainly been tough on growth stocks in recent weeks.

Shares of finance property REIT stock CubeSmart (CUBE) rose over 2.6% as shares of the self-storage stock neared a 56.74 buy point of a flat base. The stock remains 2% away from the buy point. CubeSmart was the IBD Stock of the Day earlier this month.

Another stock in the finance property REIT industry group nearing a breakout is American Homes 4 Rent (AMH). Shares rose as much as 1% in afternoon trading and neared a 42.71 buy point of a 4-1/2-month flat base.

Nutrien (NTR) reversed slightly lower and moved back below a recent high of 71.89, which serves as an early buy point. The stock is just 2% away from a 73.60 entry of a flat base. The stock’s RS line has ticked higher in recent weeks. Shares have also been moving up in higher volume, a bullish signal.

Elsewhere, regional bank stocks in the IBD 50 struggled. Customers Bancorp (CUBI), which is part of the Northeast Banks industry group, staged a powerful breakout on Thursday. But shares tumbled over 11% on Friday, triggering a sell signal from the breakout.

The stock traded above a flat base with 61.58 buy point in heavy volume as its relative strength line also notched a new high.

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

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