The Dow Jones Industrial Average inched higher as it tried to make a stand following Monday’s beatdown. Microsoft (MSFT) stock offered an opportunity, but American Express (AXP) was the top blue chip. Walt Disney (DIS) lagged on production concerns. DraftKings (DKNG) fell after it placed an acquisition bet.
Breakouts were thin on the ground as stocks tried to find their bearings, but a few managed to test entries including Molina Healthcare (MOH), Verso (VRS) and Acceleron Pharma (XLRN). Progyny (PGNY) is also looking bullish.
National Securities managing director Art Hogan said the market was seeing a host of headwinds at the moment.
“The month of September, which has been historically unfriendly to markets, has been met with (a) host of concerns,” he said in a note to clients. “The natural instinct to get investor vertigo after a long rally, coupled with growing uncertainties around monetary policy, Covid-19, inflation, the job market, and slowing economic growth.”
Nasdaq Gains, Growth Stocks Lead
The S&P sectors were mostly positive, with energy and real estate making up the most ground. Utilities and industrials were the only laggards.
U.S. Stock Market Today Overview
Last Update: 3:16 PM ET 9/21/2021
Small caps were managing to inch higher, with the Russell 2000 up about 0.7%.
But it was growth stocks that were really outperforming, with the Innovator IBD 50 ETF (FFTY) up nearly 2%.
Dow Jones Today: Microsoft Stock Offers Opportunity
The Dow Jones Industrial Average was struggling for momentum and was only up a slim 0.3%.
Microsoft stock was among the names making progress, though its gain of 0.4% was scant.
However, this means it is now rebounding off its 10-week moving average, which can be used as a buying opportunity.
Investors will probably want to wait for more upside volume given the current market conditions, but it is a name worth watching nonetheless.
Microsoft stock is both an IBD Long-Term Leader and a member of the prestigious IBD Leaderboard list of leading growth stocks.
American Express was the name making the most progress however, gaining nearly 2%.
Walt Disney (DIS) stock was the biggest laggard. The stock had been mildly positive for most of the day, but then dove more than 4%.
It fell after CEO Bob Chapek said the resurgence of Covid due to the delta variant is creating production delays in Q4. The executive was speaking at the Goldman Sachs virtual media conference.
DraftKings Stock Falls On This Bet
Online betting play DraftKings was struggling on acquisition news.
It dipped after it emerged DraftKings had tabled a bid to buy U.K. sports betting company Entain. It has offered $20 billion in stock and cash for the company, according to CNBC.
The deal will have to receive the approval of MGM Resorts, as it has an online sports betting partnership in the U.S. with Entain called BetMGM.
DraftKings stock fell almost 5% and is now well shy of a cup-with-handle entry of 64.68. The firm has yet to turn a profit as it chases growth.
Progyny Stock Nears Buy Point
Progyny stock, which was up 4%, has formed a new cup base. It is now trying to reach a buy point of 66.71.
However, investors should also look out for a new handle or trend line entry emerging.
This is a third stage base, which tends to have a lower chance of succeeding. The fact it has surged for five weeks in a row shows conviction.
The relative strength line for PGNY stock is looking very bullish, and has been spiking hard as the right side of the pattern formed.
At the moment earnings are lagging, but stock market performance is very strong.
The bullish action has seen the stock added to the IBD Leaderboard Watchlist.
3 Stocks Pass Buy Points
While market conditions are not ideal at the moment, a few stock showed power by testing buy points.
Molina Healthcare, which showed notable strength during Monday’s brutal action, managed to top a new flat base. This is a first stage pattern, which is a positive.
The California-based managed health care care stock is currently sitting below its ideal entry point of 283.53. Good all-around performance has netted it an IBD Composite Rating of 89.
Verso is in a buy zone after passing a cup-with-handle entry of 19.82. The relative strength line was bending upward, a good sign.
The paper mill stock does not have ideal earnings performance, though the stock has shown improvement in recent quarters. Stock market performance is very strong, which is reflected in its RS Rating of 93 out of 99.
Acceleron Pharma is sitting near the top of a buy zone after breaking out of a consolidation pattern. The ideal buy point here is 146.25. However, earnings and market performance are not ideal.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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