The Dow Jones Industrial Average was struggling for momentum amid broad weakness. House Speaker Nancy Pelosi hinted at changes as she moved to push ahead with mooted spending bills. Snap (SNAP) passed a buy point as growth stocks outperformed again. Tesla (TSLA) got a lift as CEO Elon Musk made bullish noises on chips.
Nike (NKE) was the biggest blue chip laggard amid supply chain woes. This had a knock-on effect on Deckers Outdoor (DECK), causing it to flash multiple sell signals. Bitcoin plunged as China vowed a crackdown.
Indexes had tried to rally even as the Evergrande Group crisis deepened, and they remained off session lows. Evergrande, China’s biggest property developer, missed a Thursday deadline on an $83.5 million bond payment. It now has a 30-day grace period on this payment to global investors before a default can be called.
Pelosi Hints At Spending Bill Changes
Pelosi said Friday she is looking to pass both the infrastructure bill and the controversial Build Back Better Act next week. But there may be tweaks, she says.
“As negotiations continue, there may be changes,” Pelosi told Democratic colleagues in a letter Friday. The Democrat leader told reporters that a vote on the $1.2 billion bipartisan infrastructure package will be held Monday.
The exact time frame for the more lavish $3.5 trillion social spending package is not clear. Democrats aim to pass this spending bill through the reconciliation process, which would sidestep a Senate filibuster.
Nasdaq Fights As Growth Stocks Lead
The Nasdaq was the worst-performing major index, slipping 0.2%. Match.com (MTCH) was faring best, turning in a gain of almost 4%.
The S&P 500 fared better, posting a minor gain of 0.1%. Pioneer Natural Resources (PXD) was one of the top performers, rising more than 3%.
U.S. Stock Market Today Overview
Last Update: 2:54 PM ET 9/24/2021
The S&P sectors were mixed, with energy and financials leading again. Health and real estate were the worst laggards.
Small caps were struggling, with the Russell 2000 dipping 0.3%.
But growth stocks were having the toughest time, with the Innovator IBD 50 ETF (FFTY) giving up 1.4%.
Dow Jones Today: Nike Stock Dives On Supply Chain Woes
The Dow Jones Industrial Average was just about positive, though it was up less than 0.1%.
Nike was the clear laggard, dropping 7% 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.
Deckers Outdoor stock fell in sympathy, triggering the 7%-8% loss-cutting sell rule, causing Deckers to exit from IBD’s Leaderboard.
Salesforce.com (CRM) was once again the best stock on the Dow Jones. It was up more than 2%, following through on a breakout.
Coinbase Stock, GBTC Dip As China Vows Bitcoin Crackdown
Bitcoin got spanked after the People’s Bank of China said all cryptocurrency-related activities are illegal.
Officials said that China’s only intention is to protect individuals from the risks of crypto trading and to secure social stability.
Bitcoin’s price dipped more than 4%, sitting just above the $42,000 mark, according to Coindesk.
IPO stock Coinbase Global (COIN) dipped around 2%, losing further ground on its 50-day moving average. It has fallen almost 46% from its record high of 429.54, which it reached April 14.
Grayscale Bitcoin Trust, which generally moves in line with the price of Bitcoin, fell about 6%. It is trading below its 50-day line, and is down by more than 40% from its February all-time high of 58.22.
Tesla CEO Elon Musk Bullish On Chips
Tesla stock climbed after Musk made bullish noises on chips amid a broad shortage.
Musk said the shortage, which is hampering car production is “short term,” and capacity will be adequate by next year.
“There’s a lot of chip fabrication plants that are being built,” Musk said. “I think we will have good capacity for providing chips by next year.”
Tesla gained 2%, with a move past a 730 handle entry gaining traction. This saw exposure to the EV stock boosted on the IBD Leaderboard list of top growth stocks Friday.
Snap Stock Leads Names Passing Buy Points
Snap is in a buy zone after passing a flat base buy point of 80.95, according to MarketSmith analysis.
The stock has been moving well, as rival Facebook (FB) struggles, and formed a base-on-base pattern. History has shown these bases can engineer strong price moves.
Chip stock Brooks Automation (BRKS) also made a positive move. It passed a cup base entry of 108.82.
This is a second-stage base, which is a positive. The stock boasts a heady mixture of price and fundamental performance. Earnings have grown an average of 124% over the past three quarters, which is well in excess of CAN SLIM requirements.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
YOU MIGHT ALSO LIKE: