Dow Flat As Nike Stock Weighs; But This Tech Breakout Jams

The Dow Jones Industrial Average traded flat in today’s stock market after multiple days of strong gains. Small caps and the Nasdaq composite both traded mildly lower.


Stock Market Today

At 1:30 p.m. ET, the Nasdaq composite fell around 0.2%. The Dow Jones traded practically at breakeven, as did the S&P 500 after it held a small gain of less than 0.1%. Data showed lower volume on the NYSE and on the Nasdaq vs. the same time on Thursday.

Stocks slipped lower and turned mixed in early afternoon trading. Investors watched the Evergrande Group crisis closely as China’s biggest property developer missed a Thursday deadline on an $83.5 million bond payment. It now enters a 30-day grace period before bondholders can signal a default. Investors worldwide fear a collapse could hit global markets, although reports say Beijing is taking steps to contain the damage.

Meanwhile, China banned Bitcoin and all other cryptocurrency transactions on Friday. Officials said that China’s only intention is to limit individuals from the risks of crypto trading and to secure social stability.

Bitcoin’s price fell more than 4% to $41,987 midday, according to Coindesk.

Grayscale Bitcoin Trust (GBTC), which tracks the price of bitcoin, fell 5% and now has suffered a 42% drop from its February peak of 58.22.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 34763.44 -1.38 +0.00
S&P 500 (0S&P5) 4451.14 +2.16 +0.05
Nasdaq (0NDQC ) 15036.78 -15.46 -0.10
Russell 2000 (IWM) 223.76 -1.05 -0.47
IBD 50 (FFTY) 51.77 -0.57 -1.09
Last Update: 1:28 PM ET 9/24/2021

Growth Stocks To Watch

Growth stocks also pulled back on Friday after several strong days of outperformance. The Innovator IBD 50 ETF (FFTY) lost over 1%. Shares remain inside the buy zone of a 50.06 buy point in a long consolidation pattern.

Stocks underperforming in the IBD 50 Friday included TaskUs (TASK) and Deckers Outdoor (DECK) which fell more than 10% and 8%, respectively.

Shares of luxury sheepskin footwear maker Deckers traded lower in heavy volume as shares slid below both the 21-day exponential moving average and the 50-day line, a bearish sign.

As of Thursday, the stock was approaching a 444.58 buy point of a flat base, according to MarketSmith chart analysis. But the drop triggered the 7%-8% loss-cutting sell rule, causing Deckers to exit from IBD’s Leaderboard.

Dow Jones Today

Inside the Dow Jones, Nike (NKE) was weighing heavily with a 7% drop on Friday. The athletic shoe and apparel giant reported mixed fiscal Q1 results late Thursday. The firm’s sales missed targets amid supply-chain struggles. Analysts expected earnings of $1.12 a share on sales of $12.47 billion, according to FactSet. Nike earned $1.16 on sales of $12.2 billion.

Nike stock is now trading 15% below a 174.48 buy point of a flat base. If it falls further, the flat-base pattern will no longer qualify. Shares pulled back after hitting a high of 174.38 on Aug. 6. The stock slipped below its 50-day line on Sept. 2 and has been trading below it since.

Tech leaders were also among stocks trading lower. Apple (AAPL) and Microsoft (MSFT) both lost around 0.5% each. Apple is still below its 50-day line despite a three-day win streak during the week. On Monday, shares hit their lowest level since early July.

CRM Stock Breakout

Elsewhere, (CRM) led the upside among blue chips with a 2% rise to a new high. The stock remains in buy range from a 275.32 timely entry of a cup with handle. The 5% buy range tops out at 289.09.

On Thursday, Salesforce broke out after the enterprise software maker raised its sales outlook for the current fiscal year, which ends in January. It expects $26.25 billion to $26.35 billion, up from a prior outlook of $26.2 billion to $26.3 billion.

Finance stocks were among strong gainers. JPMorgan (JPM) and American Express (AXP) gained more than 1% each.

Elsewhere, Chevron (CVX) continued 0.5% higher after a solid week of gains. The stock reclaimed its 50-day moving average on Thursday. Oil stocks got a boost as light sweet crude prices rose over 1% to above $74 a barrel.

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


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