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Dow Jones Slips Despite Apple; Nasdaq Hits Fresh High As Tech Stocks Rally

Stocks were mixed midday Wednesday, as the Nasdaq hit a record high but the Dow Jones Industrial Average lagged despite a fresh high from Apple.




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The Nasdaq rallied 0.7%, the S&P 500 climbed 0.2% and the Dow Jones industrials edged 0.1% lower in today’s stock market. Small caps tracked by the Russell 2000 were up 0.5%. Volume was higher on both major exchanges vs. the same time Tuesday.

Among exchange traded funds, Innovator IBD 50 (FFTY) gained 0.8%, while the Nasdaq 100-tracking Invesco QQQ Trust (QQQ) added 0.6%.

Early Wednesday, ADP said private payrolls rose 374,000 in August, well below Econoday’s consensus estimate for 500,000 new hires. On Friday, the Labor Department will release its closely watched nonfarm payrolls report.

The U.S. economy continues to recover from the Covid-19 pandemic, which triggered nationwide lockdowns over a year ago. Most states had relaxed restrictions as vaccinations continued to roll out and cases decreased.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 35343.45 -17.28 -0.05
S&P 500 (0S&P5) 4531.53 +8.85 +0.20
Nasdaq (0NDQC ) 15367.18 +107.95 +0.71
Russell 2000 (IWM) 226.93 +1.01 +0.45
IBD 50 (FFTY) 49.25 +0.37 +0.76
Last Update: 12:04 PM ET 9/1/2021

But cases are rapidly rising again and mask mandates are returning in some states as the delta variant spreads.

Cumulative Covid-19 cases worldwide are approaching 219 million, with more than 4.5 million deaths, according to Worldometer. In the U.S., cases have topped 40 million with close to 658,000 deaths.

Growth Stocks To Watch

Among breakout stocks today, PVH (PVH) soared 15%, gapping up past a 116.79 buy point of a cup-with-handle in fast turnover. JPMorgan boosted its PVH price target to 125. Late Tuesday, the Calvin Klein and Tommy Hilfiger parent reported Q2 results that topped Wall Street targets and raised its full-year outlook. Shares remain in buy range up to 122.63.

Ambarella (AMBA), up more than 20%, led the Russell 2000. The stock is quickly forming the right side of a steep base with a potential buy point at 137.31. Late Tuesday, the chip designer delivered a beat-and-raise Q2 report. It earned an adjusted 35 cents a share on sales of $79.3 million. Analysts expected earnings of 25 cents a share on sales of $75.7 million. Stifel and Deutsche Bank raised their price targets.

Over in the IBD 50, DLocal (DLO) led with a 14% surge in heavy trade to a new high. The stock has soared 242% from its June 3 IPO price of 21 a share. It vaulted 27% on Aug. 19, after DLocal reported triple-digit profit and sales growth for Q2. The Uruguay-based payments handler leads the 38-stock credit card and payment processor group with a 98 Composite Rating.

Cloudflare (NET) rallied 6% to a new high in twice normal trade, according to MarketSmith chart analysis. The stock is more than 25% extended from a 95.87 consolidation buy point, so investors can lock in some gains. But it is still in buy range from a 122.87 entry of a three-weeks-tight pattern, which tops out at 129.01.

Among other IBD 50 winners, Monday.com (MNDY), Enphase Energy (ENPH), Global e-Online (GLBE) and Asana (ASNA) rose about 3% each.

On the downside, Dynavax Technologies (DVAX) and CrowdStrike (CRWD) gave up more than 3% apiece.

After the close Tuesday, CrowdStrike reported Q2 earnings and revenue that topped analyst estimates. The cybersecurity firm reported adjusted earnings of 11 cents a share, up 266% from a year earlier. Revenue jumped 70% to $337.7 million, including acquisitions. Analysts expected 7 cents a share on revenue of $323.2 million.

Dow Jones Movers

Apple (AAPL) and Salesforce.com (CRM), up nearly 2% each, were the biggest blue chip gainers.

Apple rose 1.8% in volume about 44% higher than normal to mark a new high. Shares are well extended from a 137.17 buy point of a cup base cleared in late June. But they remain in buy range from a 148 trendline entry. Apple also got support at the 10-week line.

Procter & Gamble (PG) and Disney (DIS) added more than 1% each. On the downside, Home Depot (HD), Caterpillar (CAT) and Walgreens (WBA) gave up more than 1% apiece.

Home Depot is trying to break out past a 333.55 buy point of a cup-with-handle. But it currently sits just below the buy point. If it climbs past the entry, the 5% buy area will go up to 350.23.

Follow Nancy Gondo on Twitter at @IBD_NGondo

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