Dow Jones Near Break-Even; Nasdaq Sell-Off Continues; These Oil Stocks Are Actionable Now As Crude Prices Jump

The Dow Jones Industrial Average traded flat in today’s stock market after a choppy morning. Blue chips briefly dipped into the negative after paring early gains. The Nasdaq underperformed by a wide margin and continued yesterday’s sell-off.


Stock Market Today

At around 12:15 p.m. ET, the tech-heavy Nasdaq was down nearly 1% as techs rapidly traded lower. The Dow Jones industrials traded near break-even, while the S&P 500 traded down 0.2%. Elsewhere, the small-cap Russell 2000 index lost 0.5%. Volume ran lower on the Nasdaq and higher on the NYSE vs. the same time on Monday. Markets will be closed on Thursday for the Thanksgiving Day holiday and will close early on Friday at 1 p.m. ET.

U.S. Stock Market Today Overview

IndexSymbolPriceGain/Loss% Change
Dow Jones(0DJIA)35614.89-4.36-0.01
S&P 500(0S&P5)4664.21-18.73-0.40
Nasdaq(0NDQC )15657.65-197.11-1.24
Russell 2000 (IWM)229.41-2.32-1.00
IBD 50 (FFTY)47.06-1.15-2.39
Last Update: 12:04 PM ET 11/23/2021

Stocks were mixed early Tuesday as the market abandoned tech names in favor of cyclical stocks. The Nasdaq notched a big distribution day on Monday, which serves as a cautionary sign for investors. Too many of these could signal a market top. The Nasdaq has only racked up two distribution days in recent weeks.

Rising bond yields also contributed to the decline in tech stocks. The yield on the benchmark 10-year U.S. Treasury note rose to 1.64% after closing up more than nine basis points on Monday.

Additionally, oil prices also traded higher with West Texas Intermediate futures up 1.6% to $78 a barrel. Oil prices have been pulling back since late October when the commodity reached a high of roughly $85. But since Monday, oil has been outperforming the market, despite efforts led by the U.S. to counteract the recent gasoline price increases.

Leading oil and gas stock Diamondback Energy (FANG) is currently actionable now as shares rebound from support at the 10-week moving average. The stock is up 8% for the week and surging off its 10-week moving average. FANG is also rebounding after a test of a cup entry point of 102.63.

Other stocks outperforming in the oil and gas industry group included Pioneer Natural Resources (PXD) and SM Energy (SM), with gains of more than 4% each.

The oil and gas industry group remains a top performer in recent weeks and ranks No. 11 out of the 197 groups IBD measures. This is a sign of leadership. Several oil and gas related industry groups were among top gainers on Tuesday. Meanwhile, consumer electronics retailers — which includes names like meme stock GameStop (GME) —  and solar energy stocks were the biggest laggards.

Dow Jones Today

As for Dow Jones stocks, Merck (MRK), Travelers (TRV) and Chevron (CVX) outperformed with gains of over 2% each. Chevron traded inside the buy zone of a 113.21 cup base. Shares initially broke out on Oct. 20 but have drifted sideways since then.

Bank stocks JPMorgan Chase (JPM) and Goldman Sachs (GS) also traded up more than 1% apiece. Both bank stocks were boosted by the higher yields. JPMorgan traded inside the buy zone of a 163.93 entry in its cup with handle, according to MarketSmith chart analysis. Shares have reclaimed their key 50-day line.

Healthcare names were also looking strong as UnitedHealth Group (UNH) rose 1.7% while Amgen (AMGN) gained 1.2%.

Blue chips leading on the downside included (CRM) and Disney (DIS) with losses of more than 2% each.

Growth Stocks To Watch

The growth-focused Innovator IBD 50 ETF (FFTY) sold off 2% on Tuesday, far underperforming the major indexes. The ETF lost support at its 50-day and 21-day exponential moving averages on Monday after a drop of more than 4.5%. Stocks weighing heavily on the index on Tuesday included Lovesac (LOVE), ZoomInfo (ZI) and Freedom Holding (FRHC), with losses of over 10%, 8% and 6%, respectively.

Meanwhile, IBD 50 stock and chip designer SiTime (SITM) traded up over 11% as shares rallied on the news that it would join the S&P MidCap 400 on Tuesday. The stock recouped nearly all of its losses from Monday’s sell-off of more than 13%. SiTime is also part of the semiconductor fabless group which ranks No. 2 of the 197 IBD industry groups.

Dollar Tree (DLTR) gained over 5% early Tuesday after reporting third-quarter earnings and announcing it would raise its in-store price limit to $1.25. The gain boosted shares more than 12% above a recent breakaway gap buy point at 124.67. On Nov. 15, the stock jumped over 15% on news that activist investor Mantle Ridge had accumulated a $1.8 billion stake.

Follow Rachel Fox on Twitter at @rachelgfox more Dow Jones and stock market commentary.


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