The Dow Jones Industrial Average turned lower on Friday as about half of Dow 30 stocks saw declines. Walt Disney (DIS) was the worst performing blue chip, despite strong subscriber numbers. Tilray (TLRY) and other marijuana stocks were volatile – trading high as a kite earlier this week amid possible speculation from Reddit investors.
Meanwhile, megacap technology stocks Apple (AAPL), Microsoft (MSFT), Amazon.com (AMZN) and Google parent Alphabet (GOOGL) all lost ground.
X
Playing with electric vehicles also struggled to get into gear early. Tesla (TSLA), Nio (NIO) and Li Motors (LI) all dived lower.
Nasdaq, S & P 500
The Nasdaq was the worst performing major index, down about 0.3%. Illumina (ILMN) performed best with an increase of about 13%. PayPal (PYPL) also increased, by more than 3%. It got a boost after Chief Executive Dan Schulman said the company could have 750 million active accounts by 2025, up from 377 million at the end of the fourth quarter. At least nine analysts raised the price targets.
The S&P 500 was also lower, but fell less than 0.1%. Mohawk Industries (MHK) delivered an eye-catching performance with an increase of almost 10%.
The volume was lower compared to the same time on Thursday, although the data was incomplete. It was down about 5% on the NYSE.
Overview US stock market today |
||||
|---|---|---|---|---|
| Table of contents | Symbol | price | Profit loss | % Change |
| Dow Jones | (0DJIA) | 31391.01 | -39.69 | -0.13 |
| S&P 500 | (0S & P5) | 3914.63 | -1.75 | -0.04 |
| Nasdaq | (0NDQC) | 14006.06 | -19.71 | -0.14 |
| Russell 2000 | (Etc.) | 226.71 | +0.09 | +0.04 |
| IBD 50 | (FFTY) | 48.85 | +0.28 | +0.58 |
Last update: 10:12 AM ET 2/12/2021 |
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The S&P sectors were mixed, with a roughly even distribution of winners and losers. Financial services and materials were the best performers.
Small caps also managed to rally, with the Russell 2000 essentially flat.
Growth stocks managed to rebound from the red, with the Innovator IBD 50 ETF (FFTY) gaining 0.5%. Generac (GNRC) was the biggest winner on the IBD 50, up nearly 4%. It has been renewed from a purchase point of 234.65.
Disney Stock climbs, then turns around
The Dow Jones Industrial Average initially opened higher, but is now down about 0.2%. It clearly remains clear of its 50-day moving average.
Disney revenues and sales increased while the number of Disney + subscribers is now more than 94.9 million. Disney stock rose early but rebounded and fell about 1%. It rose above a flat-base buy point of 183.50 earlier in the week. It bullishly rebounded from its 50-day line. The buying zone for Disney stock is up to 192.68.
Marijuana stocks mixed
Aurora Cannabis (ACB) fell around 6.4%. It comes after the company reported profits on Thursday. The Canadian pot producer exceeded sales expectations. The Aurora stock plummeted 23.5% on Thursday, but is still in positive territory this week.
Marijuana stocks fell on Thursday after massive gains, but the action was mixed on Friday. Tilray’s share rose by almost 6%. It is still above the 10 day limit.
Megacap Shares
Apple shares fell nearly 1%. Shares are consolidating just below a selling point of 138.89 cup-with-handle. The AAPL stock has now dropped exponentially below its 21-day moving average, but remains above the 50-day / 10-week limit.
MSFT, a component of Dow Jones, S&P 500 and Nasdaq like Apple, fell about 0.6%. It is still in a buying zone.
The two trillion dollar FANG stocks, Amazon and Google, lost 0.4%, respectively, and were roughly equal. AMZN stock provides a handle as it drifts back to its 50-day line. GOOGL stocks are trading tight after a gap to record highs on earnings last week.
These growth stocks are plunging after gains
Datadog (DDOG) stock fell more than 5%. It comes after the company beat earnings expectations, but put earnings expectations below some estimates. According to MarketSmith, it has now fallen out of the buying range of an entry with a 111.59 cup with handle. The DDOG stock buying zone ends at 121.37.
Cloudflare (NET) was also down 7%. The company had managed to narrowly beat revenues and provide in-line guidance. Shares hit a consolidation buy-in of 88.87 on Monday, but are now below it again.
Confirm (AFRM) share fell more than 9% despite the company’s earnings and sales surpassing fiscal Q2 stances. Revenue expectations for the third quarter were in line. It tumbled from a buying zone to the loss-making zone. It had broken out of an IPO base with a buy point of 138.08.
Tesla Stock Falls, Nio Stock Reverses
Tesla’s IBD Leaderboard share is down more than 2% and is closer to its 50-day line. Earlier this week, it emerged that the electric vehicle manufacturer had been sued by five Chinese regulators for its Shanghai-made Model 3 cars. They are concerned about issues, including what regulators called “abnormal acceleration” and “battery fires.”
Its Chinese rival Nio also switched in reverse, falling about 1.3%. Nio stocks have been trying to erase a trendline hitting the highs since Jan. 11. A previous breakout from a cup base with a buy point of 57.30 failed as it cleared a double digit gain from the buy point.
Meanwhile, car giant General engines (GM) managed to find the right gear after opening the bearing. It is now up about 1%. It broke out of a cup base on Jan. 12 following positive EV news. The purchase point was 46.81.
Follow Michael Larkin on Twitter at @IBD_MLarkin for more information on growth stocks and analysis.
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