The Dow Jones Industrial Average declined slightly in today’s stock market after trading positive earlier. The Nasdaq composite also reversed lower in afternoon trading but ended up close to breakeven. Meanwhile, U.S. West Texas intermediate crude oil futures hovered near a seven-year high.
Stock Market Today
At around 1:30 p.m. ET, the Nasdaq composite traded close to breakeven. The Dow Jones traded down around 0.1%. The S&P 500 also declined 0.1%, while the Russell 2000 gained 0.6% and was the only index holding onto its earlier gains. Volume was running higher on the NYSE and on the Nasdaq vs. the same time on Monday.
The price of crude oil traded 0.3% higher as the commodity continued trading above $80 a barrel on Tuesday. Oil reached as high as $81.15 a barrel earlier this week. Global oil supplies remain tight amid a rebounding global economy. This has forced prices higher.
Energy Select Sector SPDR (XLE) traded down 0.5%, slipping for its second day in a row. Shares fell below a cup base with a 56.75 buy point. The energy sector has hosted several breakout stocks in recent weeks, bucking the overall market correction.
Stocks breaking out earlier this week included oil and gas firm Williams Cos. (WMB) and Hess (HES), an oil and gas exploration company. Callon Petroleum (CPE) and EOG Resources (EOG) are also near buy points.
On Tuesday, bank stocks BlackRock (BLK) and JPMorgan Chase (JPM) traded down less than 1% apiece. Both banks are set to report earnings Wednesday. Citigroup (C), Morgan Stanley (MS), Bank of America (BAC) and Wells Fargo (WFC) are set to report earnings Thursday.
Growth Stocks To Watch
The growth-focused Innovator IBD 50 ETF (FFTY) is holding above support at the 200-day line. Shares remain below the 50-day line. The ETF traded up 1.4% on Tuesday. Stocks leading the upside in the index included HubSpot (HUBS) and InMode (INMD).
HubSpot launched over 14% higher in heavy volume after the company announced the roll out of a new payments system at its Inbound customer conference on Tuesday.
The Cambridge, Mass.-based company said it teamed with Stripe to develop the payments system. HubSpot stock is extended from an entry point of 574.93.
Elsewhere, InMode jumped 8% upon announcing preliminary Q3 earnings that beat expectations. It forecast revenues of $93.5 million to $94 million, and full-year revenue of $343 million to $347 million. It also sees earnings of 53-54 cents a share, adjusted for the Sept. 30 2-for-1 stock split. Analysts expected Q3 sales of $74.9 million and EPS of 36 cents, according to FactSet.
The stock got some airplay on Tuesday’s IBD Live show on Zoom.
As for stocks in the MarketSmith Growth 250, casino and gaming stock Churchill Downs (CHDN) rose 1.9% as shares broke out from a cup-with-handle base and a 223.10 buy point. Shares drifted back below the proper entry in afternoon trading.
The stock is part of the gaming industry group, which ranks No. 20 out of the 197 groups IBD measures in terms of six-month price-weighted performance.
Especially amid a stock market in correction, it’s best to find stocks that are in strong industry groups.
Follow Rachel Fox on Twitter at @foxonstocks for more Dow Jones and stock market commentary.
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