The Dow Jones Industrial Average turned lower in today's stock market, erasing strong gains from early morning trading. The blue-chip index began to rise Thursday before selling off over 100 points in early afternoon trade. The S&P 500 also traded lower.
XThe Nasdaq led the market, trading 0.1% higher. The S&P 500 was down 0.2% and the Dow Jones fell 0.3%. The Russell 2000 small-cap index was nearly flat. Volume was mixed, running higher on the Nasdaq and lower on the NYSE vs. the same time on Wednesday.
Shares of leading tech stocks have been pummeled over the past week, but continued finding support on Thursday. Shares of Facebook (FB), Amazon.com (AMZN) and Alphabet (GOOG) saw gains of less than 1% each. Both Amazon and Alphabet found support at their 50-day lines, a bullish sign.
Meanwhile, Tesla (TSLA) rallied more than 5% in heavy volume Thursday as it extends gains off its 50-day moving average. On Wednesday, shares surged nearly 11%. But shares are still down more than 20% from their Sept. 1 peak.
Stock Market Today
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 27850.71 | -89.76 | -0.32 |
| S&P 500 | (0S&P5) | 3389.62 | -9.34 | -0.27 |
| Nasdaq | (0NDQC ) | 11143.50 | +1.94 | +0.02 |
| Russell 2000 | (IWM) | 152.43 | +0.30 | +0.20 |
| IBD 50 | (FFTY) | 36.90 | +0.13 | +0.35 |
Last Update: 1:20 PM ET 9/10/2020 |
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Stocks traded higher initially Thursday as jobless claims appeared to be flattening. According to the Labor Department, claims for the week ended Sept. 5 came in at 884,000 vs. Econoday's estimate for 828,000.
But the market gains, which involved no other major catalysts, was short-lived Thursday as stocks turned south. As of its closing price on Tuesday, the Nasdaq had fallen 10% from its recent record high Sept. 2. IBD on Tuesday downgraded its market outlook to "uptrend under pressure."
The Innovator IBD 50 (FFTY) exchange traded fund gained another 0.4% Thursday after posting strong gains the day prior. The index is now finding support at its 50-day line. The growth-focused index was primarily boosted by gains in Digital Turbine (APPS), Thermo Fisher Scientific (TMO) and Fortinet (FTNT), which gained about 1.7% each.
Innovator IBD 50 is now nearing the upper edge of its 5% buy zone after shares fell back inside the buy range of a cup-with-handle base and a 35.14 buy point.
As for the Dow Jones, the majority of stocks traded lower with only seven names posting gains. Disney (DIS), McDonalds (MCD) and Nike (NKE) led the upside with gains of 1.7%, 1% and 1%, respectively. Meanwhile, Caterpillar (CAT) and Walgreens (WBA) led the downside with losses of roughly 2% and 1.4%, respectively.
Outside Dow Jones: Leaderboard Stocks Find Support
IBD's change to "uptrend under pressure" from "confirmed uptrend" Tuesday marked the first change in the market outlook since the S&P 500 made a follow-through on April 2, returning the market to a confirmed uptrend after this year's market crash.
The downgraded outlook means investors should avoid chasing new breakouts since they now have a lower chance of working.
Beyond the Dow Jones, Leaderboard stocks continue to find support after the unexpected sell-off that occurred over the past week. Adobe (ADBE) rose about 3% after RBC raised its price target on the stock to 550 from 440 and maintained an outperform rating. UBS raised its Adobe target to 540 from 450 and held a buy recommendation. But shares rolled back the initial increase to about a 1.4% gain.
The stock briefly climbed back above its 470.71 buy point Thursday morning but remains inside the 5% buy zone currently. Adobe incurred a sell signal Tuesday when it wiped out all gains from the entry. But after finding support near the 50-day line, investors can try to add some shares. Keep in mind market risk is higher. Adobe reports earnings Tuesday.
Shares of PayPal (PYPL) are also extending gains from rebound off the 50-day moving average, creating a follow-on buy area. Microsoft (MSFT) is also back above its 50-day line but the rebound is still looking soft, according to Leaderboard analysis.
For further in-depth analysis on Tesla stock and true growth stock leaders, check IBD's Leaderboard.
Follow Rachel Fox on Twitter at @foxonstocks for more market insight and Dow Jones commentary.
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