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Dow Jones Slips Ahead Of Bank Earnings; IBD 50 Jumps As Growth Stocks Rally

Stocks were mixed Tuesday afternoon as the Dow Jones Industrial Average traded slightly lower and the Nasdaq composite edged higher.




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The Dow Jones industrials gave up 0.1%, the S&P 500 was flat, and the Nasdaq edged 0.1% higher in the stock market today. Small caps tracked by the Russell 2000 outperformed, up 0.8%. Volume was higher on both major exchanges vs. the same time Monday.

Among exchange traded funds, Innovator IBD 50 (FFTY) rallied nearly 2%, while the Nasdaq 100-tracking Invesco QQQ Trust (QQQ) dipped 0.2%. The IBD 50 ETF, which tested its 200-day moving average last week, is still trying to regain the 50-day line.

The major indexes were quiet Tuesday, ahead of earnings reports due this week. Bank stocks BlackRock (BLK) and JPMorgan (JPM) report Wednesday.  Citigroup (C), Morgan Stanley (MS), Bank of America (BAC) and Wells Fargo (WFC) are on tap for Thursday.

The U.S. economy continues to recover from the Covid-19 pandemic, which triggered nationwide lockdowns over a year ago. A resurgence in cases fueled by the more contagious delta variant has recently started to slow down as vaccinations rise.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 34462.14 -33.92 -0.10
S&P 500 (0S&P5) 4359.84 -1.35 -0.03
Nasdaq (0NDQC ) 14500.02 +13.82 +0.10
Russell 2000 (IWM) 222.11 +1.80 +0.82
IBD 50 (FFTY) 47.25 +0.92 +1.99
Last Update: 2:58 PM ET 10/12/2021

Cumulative Covid-19 cases worldwide have topped 239 million, with nearly 4.9 million deaths, according to Worldometer. In the U.S., cases are now over 45 million with almost 735,000 deaths.

Growth Stocks To Watch

Over in the IBD 50HubSpot (HUBS) soared nearly 17% in fast turnover to a new high. The digital marketing software seller unveiled a payments system, developed with privately held Stripe, at its Inbound customer conference. HubSpot will also hold an analyst meeting during the virtual conference. Shares are sharply extended from a 574.93 buy point of a cup base and several pullbacks to the 10-week line.

InMode (INMD) gapped up and surged nearly 10% in heavy trade as the stock rebounds off its 10-week moving average. The medical aesthetics firm offered preliminary earnings that topped Wall Street’s Q3 estimates. InMode expects adjusted profit of 53-54 cents per share on $93.5 million to $94 million in sales. That beat analyst forecasts by a respective 49% and 25%, according to a Needham report.

Upstart (UPST) leapt 7% to recover from a recent slide. The stock has held its gains after a breakout from a cup base in August. It’s rallied more than 100% since gapping up on Aug. 11, which sets up a high, tight flag. The potential buy point is 346.64, or 10 cents above the high. Upstart is on the IBD Leaderboard watchlist.


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But Avantor (AVTR) gapped down and sank 7% in heavy volume. The medical gear maker pre-announced third-Q3 sales that were just in line with forecasts. Avantor called for $1.83 billion in quarterly sales. Analysts polled by FactSet expected $1.826 billion in sales. The dive pushed Avantor stock well below its 50-day line, triggering a sell signal.

Among other IBD 50 losers, Lovesac (LOVE) and Callon Petroleum (CPE) fell more than 4% each.

Dow Jones Movers

Salesforce.com (CRM) rose 2.4% to lead gainers on the blue chip index. The move lifted shares back above a 275.32 buy point of a cup with handle, according to MarketSmith chart analysis. Salesforce stock is in potential buy zone, which goes up to 289.09. The relative strength line, which compares a stock’s performance to the S&P 500 is close to a new high — a bullish sign.

Nike (NKE) added nearly 2% as it moves further off its 200-day line. Goldman Sachs started covering the athletic shoe and apparel giant with a buy rating and 172 price target, citing a buying opportunity. Nike stock has slipped from its early August highs amid supply chain issues and other challenges.

But Amgen (AMGN) lost nearly 3% to an 18-month low. Shares have been stuck below their 50-day and 200-day lines since early August.

Intel (INTC) and Verizon (VZ) gave up about 2% each, while Johnson & Johnson (JNJ) was down 1.5%.

J&J stock is trading near the bottom of a flat base with a 178.02 buy point. An FDA committee is slated to meet Friday to discuss the merits of a J&J Covid-19 booster shot.

Follow Nancy Gondo on Twitter at @IBD_NGondo

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