The Dow Jones Industrial Average tumbled even as Apple (AAPL) popped and Nike (NKE) ran back into a buy zone. The Donald Trump SPAC Digital World Acquisition (DWAC) took a dive following calls for an SEC probe into the deal. Leaderboard stock Airbnb (ABNB) dipped amid rising Covid worries.
Nasdaq Gains As Tech Stocks Excel
The Nasdaq hit a record amid continued enthusiasm for tech stocks. It finished with a gain of 0.4%. Intuit (INTU) was the top performer here, closing up just over 10% on an earnings beat, with strong growth in online accounting revenue a highlight.
The S&P 500 struggled for momentum, finishing down 0.1%. Intuit was also the top performer here, while Devon Energy (DVN) ended up faring worst with a loss of 6.3%.
U.S. Stock Market Today Overview
Last Update: 4:04 PM ET 11/19/2021
The S&P sectors finished the day mostly negative, with technology and utilities faring best. Financials and energy were the worst performers.
Small caps struggled amid the weakness among financials. The Russell 2000 closed down about 0.9%. Small-cap value stocks were struggling even as small-cap growth stocks were hitting new highs.
The bears ended up overpowering bulls after a finely poised session for growth stocks. The Innovator IBD 50 ETF (FFTY) closed down 0.6%.
Dow Jones Slips; Apple Stock, Nike Do This
The Dow Jones Industrial Average struggled to a loss of 7%. It has been trending downward for the last three sessions in a row.
It dipped even as Apple continued to drive higher following reports it is looking to bring an electric car to market as early as 2025. It finished the with a gain of 1.7%.
The iPhone maker is at the top of its buy zone from a cup-with-handle base, according to MarketSmith analysis. The ideal buy point was 153.26.
It has been boosted following a Bloomberg report that said the tech giant is refocusing its car project around full self-driving capabilities. There is speculation it will not even have a steering wheel.
But it was Nike that was running highest on the Dow Jones today. The stock closed off highs as it notched a gain of 2.1% in solid volume. This allowed it to sprint back above a 174.48 buy point. It had previously cleared the entry on Nov. 4.
The shoe and athletics gear firm has just notched its 20th straight year of dividend hikes after boosting its quarterly dividend by 11% to 30.5 cents per share.
On Thursday, Nike said it’s created Nikeland, a virtual world on the Roblox gaming platform. Nikeland lets players customize their avatar with Nike products.
Boeing (BA) was the biggest Dow Jones laggard. It plunged 5.8%.
The decline comes after the aerospace giant walked away with 98 aircraft orders and commitments at the Dubai Airshow. European rival Airbus (EADSY) walked away with a far more impressive 408. Coronavirus worries also weighed.
Airbnb Stock Dips As Covid Fears Rise
Airbnb stock fell as a new coronavirus lockdown in Europe raised fears about another wave of infections. Austria announced a full national Covid-19 lockdown starting on Monday, while Germany has refused to rule one out.
ABNB stock closed down 3.9%, which saw it flash a sell signal from its latest entry of 211.44. It also dipped back below an alternate trendline buy point near 200.
Airbnb stock is a member of the prestigious IBD Leaderboard list of leading growth stocks.
The U.S. economy has been recovering from the Covid-19 pandemic, which triggered nationwide lockdowns more than a year-and-a-half ago.
The Food and Drug Administration expanded eligibility for Covid vaccine booster shots Friday. It applies to all adults and enables them to get the vaccines made by either Moderna (MRNA) or Pfizer (PFE)-BioNTech (BNTX).
Moderna rose 4.9%, retaking its 200-day moving average. Pfizer reversed lower, closing down 1.2%. BioNTech notched a strong gain of 5.7%.
Donald Trump SPAC Falls Hard
The Trump SPAC Digital World Acquisition plunged Friday. Its slide followed calls for the Securities and Exchange Commission to conduct a probe if the deal between Donald trump and Digital World Acquisition.
DWAC stock finished the session with a loss of 8.9% for the day. For the week it posted a painful loss of 13.5%.
It emerged Thursday that Sen. Elizabeth Warren had sent a letter questioning whether the company and Trump “may have committed securities violations by holding private and undisclosed discussions about the merger as early as May 2021, while omitting this information in U.S. Securities and Exchange Commission (SEC) filing and other public statements.”
Digital World Acquisition had earlier skyrocketed on the news it would serve as a vehicle to take the Trump Media & Technology Group public via a merger.
In addition to Truth Social, a social media site, the firm plans to offer a subscription-based video-on-demand service to be called TMTG+.
The SPAC stock is still up bigly overall for the year, gaining 414% so far in 2021.
These Stocks Pass Buy Points
Pfizer closed the day back below its 51.96 buy point from a cup-without-handle base buy point. It had cleared the level early amid the rising coronavirus worries.
Strong earnings and stock market performance earned the stock a near-perfect IBD Composite Rating of 97, of 99.
Domino’s Pizza also slipped back below its entry after briefly moving above a consolidation pattern buy point of 548.82.
Look to see if it can rally back above the entry. The home delivery giant has seen its relative strength line spike higher of late.
Energy Recovery fared better as it closed in its buy zone after clearing a consolidation entry of 23.79 in strong volume. It finished the day up 3.4%.
The firm manufactures energy recovery devices for oil and gas, chemical and water industries. It boasts an Accumulation/Distribution Rating of A, which reflects strong buying among institutions of late.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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