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Dow Jones Rises But Nasdaq Lags As Market Seeks Direction; Recent IPOs Lead Growth Stocks

Stocks were mixed midday Wednesday, as the Dow Jones Industrial Average was back up near session highs but the Nasdaq was slightly underwater.




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The S&P 500 was up 0.3%, the Dow Jones industrials also gained 0.3% and the Nasdaq slipped 0.1% in the stock market today. Small caps tracked by the Russell 2000 outperformed, up 0.6%.

Among exchange traded funds, Innovator IBD 50 (FFTY) rose 0.6%, while the Nasdaq 100-tracking Invesco QQQ Trust (QQQ) edged 0.2% lower.

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.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 34679.52 +101.95 +0.29
S&P 500 (0S&P5) 4455.77 +12.72 +0.29
Nasdaq (0NDQC ) 15036.38 -1.38 -0.01
Russell 2000 (IWM) 221.32 +1.28 +0.58
IBD 50 (FFTY) 49.25 +0.28 +0.57
Last Update: 12:08 PM ET 9/15/2021

Cumulative Covid-19 cases worldwide are approaching 227 million, with nearly 4.7 million deaths, according to Worldometer. In the U.S., cases have topped 42 million with more than 682,000 deaths.

Growth Stocks To Watch

EBay (EBAY) rose 5% as it rebounded off its 50-day moving average, which it tested on Tuesday. Volume was running nearly two times higher than normal. The rebound off the 10-week line sets up a chance to buy or add shares up to around the 78 level.

Regeneron Pharmaceuticals (REGN) was up 1.3% after paring a bigger early gain. Shares are extended from a 592.94 buy point of a cup-with-handle, according to MarketSmith chart analysis. But they are getting close to testing the 10-week moving average.

Late Tuesday, the biotech said the U.S. government agreed to buy another 1.4 million doses of Regeneron’s Covid-19 treatment for $2.9 billion. Several analysts boosted their price targets, including H.C. Wainwright, which set an 831 target.

TaskUs (TASK) led the IBD 50 with a 6% pop in above-average volume after it got support at the 21-day line. The stock triggered the eight-week hold rule after breaking out from an IPO base in mid-August. It’s now in the sixth week of the rule. Investors could still lock in some gains, because new issues can be volatile. TaskUs, with a 99 Composite Rating and 98 Earnings Per Share Rating, is an IBD Sector Leader.

InMode (INMD) rose 4% in heavy trade as it tries to recover more of Monday’s 10% plunge. That marked the biggest single-day point loss of InMode’s run, triggering a sell signal. But it closed off session lows and gained 3.4% on Tuesday. Investors could still take profits in the August 2019 new issue. InMode is also an IBD Sector Leader.

Doximity (DOCS) was the biggest IBD 50 loser, down 4% in higher-than-normal turnover. Deckers Outdoor (DECK), Monday.com (MNDY) and Global-e Online (GLBE) gave up about 3% each.

Dow Jones Movers

Walgreens Boots Alliance (WBA), Caterpillar (CAT) and Chevron (CVX), up about 2% each, led the Dow.

Walgreens is trying to halt a four-session slide. The stock has been consolidating for five months with a buy point for now at 57.15. It’s about 14% below the entry.

Caterpillar stock is working on a three-month consolidation and is still trading about 17% below a 246.79 buy point. Chevron has been stuck below its 50-day line for most of the past three months.

But Nike (NKE), down 1.5%, was the biggest Dow Jones loser. It’s been shaping a flat base with a 174.48 buy point. On Wednesday, it undercut the bottom of the base, but the overall pattern remains in flat-base range. Nike stock has slipped below the 50-day line, so retaking support at that level would be a bullish sign for the athletic shoe and apparel giant.

Follow Nancy Gondo on Twitter at @IBD_NGondo

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