Stocks reversed lower Tuesday afternoon with the major indexes falling into the red as Apple weighed mildly on the Dow Jones Industrial Average. Yet leading growth stocks still advanced on the whole.
The Dow Jones industrials edged 0.1% lower, while the S&P 500 and Nasdaq also headed south in the stock market today. Small caps tracked by the Russell 2000 outperformed, up 0.2%. Volume was mixed, higher on the NYSE but lower on the Nasdaq vs. the same time Monday.
The U.S. economy continues to recover from the Covid-19 pandemic, which triggered nationwide lockdowns over a year ago. Most states had relaxed restrictions as vaccinations continued to roll out and cases decreased.
But cases are rapidly rising again and mask mandates are returning in some states as the delta variant spreads.
Cumulative Covid-19 cases worldwide have topped 218 million, with more than 4.5 million deaths, according to Worldometer. In the U.S., cases are approaching 40 million with close to 657,000 deaths.
Growth Stocks To Watch
U.S. Stock Market Today Overview
Last Update: 1:36 PM ET 8/31/2021
NetEase (NTES) gapped up and soared nearly 7% to recover its Monday loss and then some. Shares rallied after the online gaming company reported Q2 earnings that beat views. NetEase also said minors account for less than 1% of its revenue, according to Reuters.
China gaming stocks got hit Monday, after the country’s regulators announced new rules that limit video game playing to three hours a week. NetEase plunged nearly 9% before cutting its loss to 3.4%.
Palantir Technologies (PLTR), up 1.4% Tuesday, remains in buy range from a 26.04 entry of a cup-with-handle.
It briefly climbed past the buy point on Monday, but closed slightly below the entry.
PLTR stock‘s relative strength line remains far from its old highs. Ideally, the RS line should hit a new high on the breakout day.
Zoom Video (ZM) gapped down and dived 16% to a three-month low. Late Monday, the videoconferencing leader reported Q2 earnings and revenue that beat Wall Street targets. But shares slumped amid Zoom’s weaker-than-expected earnings guidance for the current quarter. The stock is now about 50% off its all-time high from October 2020.
Dow Jones Movers
Walgreens Boots Alliance (WBA) led the blue chip index with a 4% gain in heavy volume. The Illinois-based drugstore chain joined the growing list of retailers announcing wage hikes to a minimum of $15 per hour, as they compete for staff in a rebounding economy. Walgreens said it would begin to implement the pay hikes in October, phasing them in through November 2022.
Apple (AAPL) slipped less than 0.5%, giving back a portion of Monday’s 3% gain, when it hit a record high. Shares remain in potential buy range from a 148 early entry point spotted with the use of a trend line.
Apple is an IBD Leaderboard stock.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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