Banking

Dow Jones Falls As IBM Weighs, Nasdaq Rises As Tesla Reverses Higher

Stocks were mixed midday Thursday, as the Dow Jones Industrial Average fell more than 100 points while the Nasdaq held a modest gain.




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The Nasdaq advanced 0.3%, the S&P 500 edged less than 0.1% lower and the Dow Jones industrials gave up 0.3% in the stock market today. Small caps tracked by the Russell 2000 were slightly lower. Volume was higher on both major exchanges vs. the same time Wednesday.

Among exchange traded funds, Innovator IBD 50 (FFTY) rose 0.4%, while the Nasdaq 100-tracking Invesco QQQ Trust (QQQ) climbed 0.1%. The IBD 50 ETF popped back above its 50-day moving average last week and is now close to a 50.06 buy point of the failed breakout.

First-time jobless claims fell to 290,000 the week ended Oct. 16, the Labor Department said early Thursday. That was below the prior week’s revised 296,000 and Econoday’s forecast for 300,000 claims.

The U.S. economy continues to recover from the Covid-19 pandemic, which triggered nationwide lockdowns over a year ago. A resurgence in cases fueled by the more contagious delta variant has recently started to slow down as vaccinations rise.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 35496.70 -112.64 -0.32
S&P 500 (0S&P5) 4534.06 -2.13 -0.05
Nasdaq (0NDQC ) 15160.32 +38.64 +0.26
Russell 2000 (IWM) 227.16 -0.21 -0.09
IBD 50 (FFTY) 49.58 +0.18 +0.36
Last Update: 12:02 PM ET 10/21/2021

Cumulative Covid-19 cases worldwide are approaching 243 million, with over 4.9 million deaths, according to Worldometer. In the U.S., cases have topped 46 million with almost 752,000 deaths.

Growth Stocks To Watch

Tesla (TSLA) cruised 4% higher in fast turnover after reversing from an early drop. Late Wednesday, it reported better-than-expected Q3 earnings, after already posting record deliveries for the quarter and strong China sales. It reported earnings per share of $1.86, up 145% from last year and above estimates. Sales came in at $13.76 billion, 57% above the year-ago period and basically in line with views.

Tesla stock is close to a new high and is extended from a 764.55 buy point of a cup with a handle. The electric-vehicle giant is an IBD Leaderboard stock.

Crocs (CROX) leapt 14% early Thursday in heavy volume, before halving its gain. The stock regained its 50-day line early but was close to it at midday. The resin-based footwear maker earned $2.47 a share in Q3, more than double a year ago, beating estimates for $1.87. Sales jumped 73% to $625.9 million, above views for $607 million. Crocs now sees full-year revenue up 62%-65%. However, Wall Street was forecasting 67% growth, to $2.316 billion.

On the downside, Lam Research (LRCX) gapped down and fell more than 5% to a seven-month low, before paring its loss to about 3%. Shares pulled further below the 50-day and 200-day lines. Late Wednesday, the chip gear-maker beat analyst estimates for earnings in the September-ended quarter but its sales were light. It also gave a disappointing outlook.

Over in the IBD 50, Asana (ASNA), Affirm (AFRM) and Penske Automotive Group (PAG) gained more than 3% each. But TaskUs (TASK), ChampionX (CHX) and Atkore (ATKR) gave up over 3% apiece.

Innovative Industrial Properties (IIPR) broke out of a flat base and is in buy range from the 253.71 buy point. Volume was above average, but not impressive. The relative strength line, though, is at new highs.

Dow Jones Movers

IBM (IBM), down nearly 8%, was by far the biggest loser on the Dow. The stock tumbled after Big Blue’s Q3 sales fell short of estimates. The company reported adjusted earnings of $2.52 a share on revenue of $17.6 billion. IBM shares gapped down below their 50-day and 200-day lines. On Wednesday, they had closed near a 146.10 buy point of a cup with handle.

Dow Inc. (DOW) fell back below its 50-day line after reversing to a 3% drop. Among other Dow Jones losers, Caterpillar (CAT) and American Express (AXP) gave up nearly 2% each. American Express slipped back below its 178.90 buy point.

But Nike (NKE) and Walgreens (WBA) led the upside with gains of about 1% apiece.

Intel (INTC) edged 0.5% higher ahead of its earnings due after the close. Shares are on track for a seventh straight advance as they consolidate. Intel stock is still about 19% away from a potential 68.59 buy point.

Other Earnings On Tap

Non-Dow stocks reporting quarterly results after the close include Chipotle Mexican Grill (CMG) and Snap (SNAP).

Chipotle earnings are expected to grow 68% year over year to $6.32 per share on revenue of $1.9 billion, per IBD data. CMG shares closed Wednesday below their 50-day line.

Snap is testing its 50-day line ahead of Thursday’s Q3 earnings report. The Snapchat mobile app operator expected to earn an adjusted 8 cents per share on sales of $1.1 billion, according to Benzinga estimates.

Follow Nancy Gondo on Twitter at @IBD_NGondo

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