Stocks fell near session lows Wednesday, as the Dow Jones Industrial Average lost 200 points amid inflation fears.
XAt around 1:30 p.m. ET, the Nasdaq sank more than 1.1%, the S&P 500 fell 0.5% and the Dow Jones industrials gave up 0.4% in the stock market today. Small caps tracked by the Russell 2000 were down 1.1%. Volume was lower on both major exchanges vs. the same time Tuesday.
Energy, technology and communication services were the biggest laggards among the 11 sectors tracked by S&P. Health, consumer discretionary, utilities and consumer staples led the upside.
Among exchange traded funds, Innovator IBD 50 (FFTY) lost 3.4%, while the Nasdaq 100-tracking Invesco QQQ Trust (QQQ) fell 0.9%. The IBD 50 ETF is shaping a new flat base with a 52.56 buy point.
Early Wednesday, the Labor Department said the consumer price index soared 6.2% year over year in October, marking the biggest annual increase since November 1990. That beat Econoday forecasts for a 5.8% rise. The core CPI, which excludes food and energy, rose 4.6% to a 30-year high.
Meantime, weekly jobless claims fell to 267,000, meeting Econoday estimates and slightly lower than last week's 269,000 reading.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 36187.30 | -132.68 | -0.37 |
| S&P 500 | (0S&P5) | 4662.27 | -22.98 | -0.49 |
| Nasdaq | (0NDQC ) | 15710.87 | -175.67 | -1.11 |
| Russell 2000 | (IWM) | 238.60 | -2.55 | -1.06 |
| IBD 50 | (FFTY) | 50.11 | -1.77 | -3.41 |
Last Update: 1:30 PM ET 11/10/2021 |
||||
The 10-year Treasury yield rose 6 basis points to 1.52% as stocks fell. The benchmark yield staged a near-term peak at 1.69% on Oct. 22. Some investors worry the Federal Reserve may hike interest rates earlier than expected due to higher inflation.
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 been slowing down as vaccinations rise.
Globally, Covid-19 cases are approaching 252 million, with over 5 million deaths, according to Worldometer. In the U.S., cases have topped 47.5 million with more than 778,000 deaths.
Growth Stocks To Watch
DoorDash (DASH) rallied 15% after the food-delivery company late Tuesday reported results and said it is acquiring a Finland-based peer. The stock deal for Wolt is valued at about $8 billion. DoorDash stock is breaking out past the 220.71 buy point of a shallow double-bottom base but pulled back sharply.
Coinbase (COIN) plunged more than 7% in early trade, before paring its loss to 5%. Late Tuesday, the cryptocurrency exchange reported Q3 results that missed expectations. Despite the big early drop, COIN stock held above its 21-day exponential moving average and remains above a 280.71 double-bottom entry.
Over in the IBD 50, Monday.com (MNDY) and Upstart (UPST) dived more than 18% each.
Upstart gapped down below its 50-day moving average in heavy volume, triggering a sell signal. Late Tuesday, the consumer lender reported better-than-expected Q3 results. It earned 60 cents a share on $228.5 million in revenue, vs. Wall Street forecasts for 33 cents on sales of $215 million. But Upstart's revenue guidance may have disappointed some investors.
Monday.com was down nearly 20% after the Israel-based enterprise software maker reported Q3 results early Wednesday. The stock gave back much of Tuesday's 16% gain. The sharp drop sent shares tumbling below a 408.08 buy point of a cup with handle cleared Tuesday, according to MarketSmith chart analysis. Monday.com triggered the round-trip sell rule and the 7%-8% loss-cutting sell rule.
But Unity Software (U) reversed from a deep dive to a 5% gain to mark a new high and lead the IBD 50 upside. Shares tumbled about 8% early Wednesday, even though the animation software maker crushed Q3 sales targets and reported a smaller-than-expected loss.
Unity also announced plans to buy visual effects firm Weta Digital for $1.625 billion in cash and stock.
Shockwave Medical (SWAV) and Tesla (TSLA), up a respective 4% and 3%, were among the few IBD 50 gainers.
All Eyes On Rivian IPO
Electric-vehicle maker Rivian began trading today, after pricing 153 million shares at $78 a share Tuesday night. The IPO raised $11.9 billion, giving the EV startup an initial valuation north of $70 billion. The stock, which trades under the RIVN ticker, was up 44% in afternoon trade.
Rivian is the largest IPO so far in 2021 and the biggest since Alibaba (BABA) in 2014, according to Renaissance Capital. In comparison, the Alibaba IPO raised $25 billion.
But investors should be disciplined about buying new issues. Wait for an IPO base to form and set up the first buy point before considering a purchase.
Dow Jones Movers
Nike (NKE), down more than 3%, was the biggest blue chip loser. The stock cleared a 174.48 buy point of a cup base last week but has now fallen below the entry. Nike stock is about 4% below the buy point.
Salesforce.com (CRM) gave up 2%, while Apple (AAPL) and Microsoft (MSFT) were off about 1.3% each.
Apple has formed a new cup-with-handle base with a 153.27 buy point. Shares are about 3% below the new entry. Meanwhile, an early buy point at 152.53 is also in play as a result of a downward sloping trendline.
Microsoft remains extended from a 305.94 buy point of a flat base cleared on Oct. 18. The buy zone topped out at 321.24. The software giant is trading near record highs.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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