The Dow Jones Industrial Average fell even as small caps rallied. Tesla (TSLA) moved higher as Rivian (RIVN) fell hard. The controversial Donald Trump SPAC Digital World Acquisition (DWAC) made a big weekly loss. Johnson & Johnson (JNJ) fell after a CDC ruling.
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A few stocks still managed to pass buy points amid the bearish action. Edwards Lifesciences (EW) and Cerner (CERN) attempted breakouts.
Oanda senior markets analyst Edward Moya said stocks had gone on a “rollercoaster ride” Friday amid omicron updates, geopolitical tensions and triple-witching volatility.
“Trading will remain very choppy for the rest of the year as investors grapple with falling trading volumes over the coming sessions,” he said in a research note.
Nasdaq Flat As Small Caps Excel
The Nasdaq had been positive for much of the session, but closed down 0.1%. NetEase (NTES) was a big laggard here, falling more than 5%.
The S&P 500 fared much worse, giving up 1%. Leggett & Platt (LEG) was also a laggard, falling nearly 8%.
U.S. Stock Market Today Overview |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 35366.56 | -531.08 | -1.48 |
| S&P 500 | (0S&P5) | 4620.55 | -48.12 | -1.03 |
| Nasdaq | (0NDQC ) | 15169.68 | -10.76 | -0.07 |
| Russell 2000 | (IWM) | 215.14 | +1.96 | +0.92 |
| IBD 50 | (FFTY) | 42.92 | +0.05 | +0.12 |
| Last Update: 4:06 PM ET 12/17/2021 | ||||
The S&P 500 sectors were all negative. Financials and materials made the worst losses, while real estate and consumer discretionary fared best.
Small caps were a bright spot after the Russell 2000 managed to rise 0.9%.
Growth stocks closed the day mildly positive, with the Innovator IBD 50 ETF (FFTY), a bellwether for growth stocks, rising an anemic 0.1%.
The ETF is falling away from the key longer-term 200-day moving average.
Dow Jones Today: Index Struggles As Boeing Stock Gains
The Dow Jones Industrial Average fared worst out of the major indexes. It closed the day down 1.5%, giving up more than 500 points in the process.
Goldman Sachs (GS) was the worst performer, giving up 3.9% in a tough day for financials.
Walmart (WMT) also struggled, giving up 3.2%. It closed the day beneath its 200-day moving average.
Boeing (BA) was a top performer, rising 1%. It remains marooned below its major moving averages however. IBM (IBM) was the index’s top dog for Friday, rising 1.2%.
Tesla Stock Gains As Rivian Tumbles
Tesla stock made up ground Friday, closing the day up 0.6%. It closed off session highs though, and shares remain shy of the key 50-day moving average.
Tesla stock closed under the key benchmark Monday, for the first time since June 22.
TSLA stock has been coming under pressure as CEO Elon Musk sells shares. It is estimated Musk could sell as much as $18 billion worth of stock by the end of the year.
His string of disbursements have taken a toll on the Leaderboard name. Shares traded as high as 1,243.49 on Nov. 4. TSLA shares remain sharply above a 764.55 buy point in a cup with handle. The EV giant is working on a new base.
It made up ground as Rivian ended the day down over 10%. This caused Rivian to slip to its lowest level since its Nov. 10 IPO.
RIVN stock reeled after the EV firm posted a much-bigger-than-expected loss in its first earnings report since going public. Revenue of $1 million was roughly in line with estimates.
Rivian said it will miss its 2021 production target by a “few hundred vehicles.” It also said new orders placed today likely won’t be filled until 2023.
JNJ Stock Struggles On This
Johnson & Johnson stock closed the day down 2.8%. The stock is forming a cup-with-handle base with an ideal entry point of 180.02.
It comes after the Centers for Disease Control and Prevention recommended the Moderna (MRNA) and Pfizer (PFE)/BioNTech (BNTX) vaccines for Covid-19 over JNJ’s jab.
The CDC said there were 54 cases of people developing blood clots and showing low blood platelet levels due to the JNJ vaccine.
MRNA stock closed the day up 4.5%. It has moved back above its 10-week moving average after gaining nearly 15% this week.
Pfizer stock fell 2.9%, while BioNTech stock rose 1.3%. It comes after Pfizer pushed back plans to seek authorization of its Covid-19 vaccine in children between 6 months and under 5 years of age due to a weaker-than-expected immune response.
Donald Trump SPAC Does This
The Donald Trump SPAC Digital World Acquisition ended with a big weekly loss of 10.6%. It fell a more moderate 2.5% for Friday alone.
Nevertheless, the stock managed to remain above its 21-day exponential moving average, thanks to last week’s gain of almost 25%.
On Thursday, it emerged private equity investor Brian Shevland is suing the DWAC Chief Executive Patrick Orlando, claiming the deal is a “brazen act of fraud.”
DWAC is looking to merge with Trump Media & Technology Group, which previously named Republican Congressman Devin Nunes as its new CEO. Nunes will resign from Congress and take over the CEO post in January.
Earlier this month, it emerged federal regulators are investigating the SPAC deal. Digital World Acquisition disclosed in a filing that it is being probed by the SEC and FINRA.
The probe comes after Sen. Elizabeth Warren sent a letter to the SEC calling on the regulator to investigate the deal.
The firm is looking to launch a social media site called Truth Social and a subscription-based video-on-demand service called TMTG+.
DWAC stock remains well off its all-time high of 175. It has risen almost 400% so far in 2021.
These Stocks Pass Buy Points
Edwards Lifesciences ended the day under a flat-base buy point of 123.37 after moving above the daily chart pattern earlier in the session.
The relative strength line has been climbing in recent sessions. It boasts a good mix of earnings and market performance.
Cerner is extended after gapping up in high volume past a consolidation pattern entry of 82.10.
It surged on reports tech giant Oracle is in talks to purchase the company in a $30 billion deal. CERN offers medical records and clinical workflow software
Meanwhile, self storage stock CubeSmart (CUBE) neared a 56.74 buy point of a flat base. CubeSmart was the IBD Stock of the Day earlier this month.
Another property REIT eyeing a breakout is American Homes 4 Rent (AMH). It is closing in on a 42.71 entry from a flat base.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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The post Dow Jones Falls; Tesla Stock Gains As Rivian Dives; J&J Drops On This Covid Move appeared first on Investor’s Business Daily.
