Technology stocks were down sharply again in afternoon trading Tuesday, but blue chip stocks in the Dow Jones Industrial Average held up relatively well. Travelers (TRV) outperformed with a gain of nearly 3%. Several other Dow Jones stocks outperformed with gains of at least 1%, including Merck (MRK), Walgreens (WBA) and Dow Inc. (DOW).
XThe Dow Jones industrials were only down -0.4%, but the Nasdaq composite slumped below its 50-day moving average, falling 1.8%. The Nasdaq 100 fell 1.8% as it holds just above the 50-day line. Some of the last stocks left standing in the Nasdaq 100 were among the hardest hit Tuesday. Adobe (ADBE) slumped 7% ahead of Thursday's earnings report, while Cadence Design Systems (CDNS) lost 6.5%. Headed into today, Cadence had been trading tightly near highs, but the stock offers a good example of how a weak market eventually takes everything down with it.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 35511.62 | -139.33 | -0.39 |
| S&P 500 | (0S&P5) | 4616.42 | -52.55 | -1.13 |
| Nasdaq | (0NDQC ) | 15142.12 | -271.16 | -1.76 |
| Russell 2000 | (IWM) | 214.32 | -1.72 | -0.80 |
| IBD 50 | (FFTY) | 43.10 | -0.88 | -2.00 |
Last Update: 1:14 PM ET 12/14/2021 |
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Dow Jones component Microsoft (MSFT) also lagged badly in the Nasdaq 100, down 4%, but it's still holding above its 50-day line.
Outside The Dow Jones
The S&P 500 was down 1.1%, hurt by weak performances from Fortinet (FTNT), Enphase Energy (ENPH) and ServiceNow (NOW), which showed losses of 6% to 7%. The Russell 2000 small-cap index eased 0.8%.
Managed care firm Centene (CNC) led the S&P 500, up 4%. It's at the top of the 5% buy zone after a breakout over an alternate entry of 77.74, 10 cents above the stock's Nov. 18 intraday high.
Leaderboard stock Nucor (NUE) also did well in the S&P 500, up 2%. The steel producer looks poised for its fourth straight gain as it approaches a 122.16 buy point.
Inside the MarketSmith Growth 250, small cap Customers Bancorp (CUBI) added 3.5% as it forms a flat base. The new base comes after a solid breakout in October.
The Innovator IBD 50 ETF (FFTY) was down 2% and took out its Dec. 16 intraday low. The exchange-traded fund, which tracks the performance of the IBD 50 index of top-rated growth stocks, is now 18% off its high.
Biotech Regeneron (REGN) outperformed in the IBD 50, up 1.3%. It's still in buy range from a 661.94 buy point.
Stock Market Direction
IBD put the market in a correction on Dec. 3. Many leading growth stocks have corrected sharply off highs as money has moved into more defensive names like real estate investment trusts, utilities and consumer staple stocks.
Stock Market ETF Strategy And How To Invest
With the market tide flowing decidedly negative, it's a difficult environment to make money in stocks. Savvy growth investors have been raising cash in recent weeks but are also open to the possibility that indexes could follow through and confirm a new uptrend. But the bear case still holds plenty of water with all the damage that's been done to high-profile technology stocks.
No doubt that the Federal Reserve's policy statement on Wednesday could move the stock market sharply higher or lower. Wall Street is expected a hawkish tone from the Fed as it stands ready to fight inflation more aggressively. The Fed has been reducing the amount of monthly purchases in Treasurys and mortgage-backed securities by $15 billion per month, but it's likely they'll quicken the pace of selling.
For now, federal funds futures expect two rate hikes next year and possibly a third in December.
Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.
Follow Ken Shreve on Twitter @IBD_KShreve for more stock market analysis and insight.
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