Dow Jones Dips As U.S. Retains Trump China Tariffs; Biden Slams GOP On Debt; These Stocks Gain As Oil Gushes

The Dow Jones Industrial Average dipped as the U.S. looks set to maintain tariffs imposed by former President Donald Trump on China imports. Energy stocks Diamondback Energy (FANG) and Pioneer Natural Resources (PXD) passed buy points as oil prices hit a seven-year high.


Tech stocks were battered lower. Apple (AAPL) was the worst Dow stock, while Nvidia (NVDA) and Facebook (FB) plunged. HubSpot (HUBS), Zscaler (ZS), Shopify (SHOP) and Square (SQ) all made bearish moves.

U.S. Set To Retain Trump Tariffs On China

U.S. trade representative Katherine Tai promised “frank” talks with Chinese counterpart Liu He over the phase 1 deal and trade concerns. She said China has not adhered to all its purchase commitments.

“Above all else, we must defend – to the hilt – our economic interests,” Tai told an event hosted by the Center for Strategic and International Studies think tank. “That means taking all steps necessary to protect ourselves against the waves of damage inflicted over the years through unfair competition.”

Tariffs imposed by President Trump are to be maintained, though a process for American companies to seek exemptions from tariffs on goods for which there are no viable alternatives will reopen.

Biden Tells ‘Disgraceful’ GOP To Move On Debt

President Joe Biden slammed the “disgraceful” GOP over the debt ceiling. He attacked the Republican Party for frustrating Democrat attempts to raise or suspend the U.S. borrowing limit.

He accused GOP leaders of  “threatening to use their power to prevent us from doing our job, saving the economy from a catastrophic event.”

Biden accused Republicans of being “hypocritical, dangerous and disgraceful,” and said they should, “just get out of the way.”

The President, who wants Congress to raise the debt ceiling this week, was angered Senate Minority Leader Mitch McConnell had ignored a White House request to allow Democrats to pass legislation to raise the ceiling with a simple majority.

Nasdaq Dives As Tech Stocks Suffer

The Nasdaq was getting hammered amid weakness in tech stocks. It fell more than 2%, losing ground on its 50-day moving average. The index pared some earlier losses. The S&P 500 also struggled amid a broad sell-off, falling around 1.4%

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 33988.99 -337.47 -0.98
S&P 500 (0S&P5) 4296.87 -60.17 -1.38
Nasdaq (0NDQC ) 14253.96 -312.74 -2.15
Russell 2000 (IWM) 220.06 -2.22 -1.00
IBD 50 (FFTY) 45.84 -1.28 -2.72
Last Update: 3:00 PM ET 10/4/2021

The S&P sectors were nearly all red, with energy and utilities the only areas making gains. Technology was faring worst of all.

Small caps were also falling, with the Russell 2000 dipping about 1%.

Growth stocks were given the worst spanking by the bears, with the Innovator IBD 50 ETF (FFTY) falling nearly 3%.

Dow Jones Today: Apple Stock Drops, Merck Leads

The Dow Jones Industrial Average fared best out of the major indexes, but still fell 1%.

Apple stock was the worst performer on the Dow Jones today. It has undercut Friday’s low after falling about 2.5%, and is nearing its 200-day moving average.

Merck was once again the major winner on the Dow Jones, though it ceded gains. The stock was up 1.5%. It is siting at the top of a flat base buy zone. The ideal entry point was 79.33, although a gap up extends the buy zone.

Merck has been gaining since announcing its experimental antiviral pill reduced the risk of death or hospitalization by about 50% for Covid patients in trials.

Energy Stocks Pass Buy Points As Oil Hits High

Energy stocks were boosted after OPEC and a Russia-led group of oil producers decided against a big boost in production. This saw crude prices soar to just nearly $78 per barrel, a level last seen in 2014.

Diamondback Energy is currently sitting in a buy zone after breaking past a cup base entry of 102.63. The relative strength line hit a new high, which is a bullish sign.

Shares have gained more than 10% over the past two weeks. The stock is one of the top 4% of stocks in terms of price performance over the past 12 months.

Pioneer Natural Resources is also actionable after passing a 175.47 consolidation pattern entry. But given that the market is in a correction, buying any stock is a risky proposition.

Facebook Stock, Nvidia Dive As Tech Gets Mauled

A number of notable tech stocks were getting mauled amid the bearish action.

Facebook was at session lows, falling more than 5% and has fallen to its lowest price since June. It had gapped down after the open, and sits deep below the 50-day moving average.

A company whistleblower was identified for the first time after she appeared on CBS’s “60 Minutes.”

Frances Haugen was The Wall Street Journal’s main source for articles critical of the company’s handling of potential harm caused by the platform.

Nvidia stock was also getting battered, losing nearly 5%.

The Leaderboard stock has been having a torrid time of late, falling back under its 10-week moving average last week.

HubSpot and Zscaler both made bearish moves by falling below the key 10-week line. This is a sell signal.

Shopify and Square both fell below their 200-day moving averages. This is a late sell signal.

Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.


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