June 14, 2021

George Cafe Journal

The Power of Success

Dow Jones Drops 200 Points As Stock Market Sells Off; Apple Hit With Antitrust Case

Key market indexes extended their losses midday Friday with the Dow Jones Industrial Average down more than 200 points as Chevron and Apple weighed.




X



The S&P 500 fell more than 0.6%, the Dow Jones industrials lost 0.6% and the Nasdaq gave up nearly 0.5% in the stock market today. Small caps tracked by the Russell 2000 slumped 0.8%. Volume was lower on both major exchanges vs. the same time Thursday.

For the week, the Nasdaq and S&P 500 are on track for flat to slight gains. But the Dow is headed for a 0.7% loss.

In 2020, tech stocks boosted the Nasdaq to a 43.6% gain — its fifth best year ever. The S&P 500 rose 16.3% in 2020 and the Dow added 7.2%. After a strong start this year and a short correction, the market has rebounded near record highs. Read The Big Picture for more detailed daily market analysis.

Covid-19-Update

The Covid-19 pandemic has roiled the U.S. economy, as nationwide lockdowns have passed the one-year mark. But many states are relaxing restrictions and cases are starting to plateau or decline in some states as vaccinations roll out.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 33845.33 -215.03 -0.63
S&P 500 (0S&P5) 4185.72 -25.75 -0.61
Nasdaq (0NDQC ) 14017.26 -65.29 -0.46
Russell 2000 (IWM) 226.22 -1.77 -0.78
IBD 50 (FFTY) 46.70 -0.50 -1.06
Last Update: 12:08 PM ET 4/30/2021

Cumulative Covid-19 cases worldwide have topped 151 million, with more than 3 million deaths, according to Worldometer. In the U.S., cases have surpassed 33 million with over 589,000 deaths, although the number of new cases in the U.S. has slowed dramatically in many states.

As countries rush to vaccinate their populations, Pfizer (PFE) partner BioNTech (BNTX) leapt 6% in heavy trade to a new high. Shares are now about 46% extended from a 131.10 buy point of a consolidation.

Moderna (MRNA), whose Covid-19 vaccine also has FDA emergency use approval, rose 3.5%. The biotech’s stock is about 4% away from a 189.36 buy point of a cup base. Moderna raised manufacturing goals for its vaccine on April 29. The company expects to make 800 million to 1 billion doses this year and 3 billion next year.

Dow Jones Movers

Chevron (CVX) gapped down and skidded 3% in heavy volume to test its 50-day moving average. Shares are working on a seven-week flat base with a 112.80 buy point, according to MarketSmith chart analysis. Chevron stock is about 7% away from the entry.

The oil giant reported mixed Q1 results early Friday as earnings missed but sales topped views. It earned 90 cents a share on revenue of $31.7 billion. Analysts expected 95 cents on revenue of $30.9 billion.

Among other blue chip losers, Dow Inc. (DOW) and IBM (IBM) fell more than 2% each. Cisco Systems (CSCO) and Visa (V) gave up nearly 2% apiece.

Apple (AAPL), which trimmed a bigger earlier loss to 0.4%, is on pace for a fourth straight decline. The stock is slightly below a 135.63 buy point of a cup with handle it briefly cleared Thursday. Apple reported blowout quarterly results late Wednesday.

The European Commission hit Apple with antitrust charges over its distribution of music streaming apps. That could lead to fines of up to 10% of the iPhone maker’s total annual revenue and changes to its App store rules.

Blue chip gainers included Amgen (AMGN) and Merck (MRK), up more than 1% each.

Outside The Dow

Oil and gas, solar and travel booking stocks led the downside among IBD’s 197 industry groups. Automakers, steel and utility stocks were among the few groups bucking the decline.

In the automaker group, Tesla (TSLA) rallied nearly 4% in fast turnover to retake its 50-day line. Shares are building the right side of a new cup with handle, offering a 780.89 buy point. But it is a late-stage base.

Amazon (AMZN) rose 2% in huge volume, on track to extend its win streak to six. Amazon stock remains in potential buy range from a 3,436.03 buy point of a handle. The buy zone tops out at 3,607.83. A slightly higher entry also awaits at 3,552.35, a dime above the left side high.

Late Thursday, the e-commerce giant reported Q1 results that beat Wall Street targets on both the top and bottom lines. Amazon delivered adjusted earnings of $15.79 a share on revenue of $108.5 billion. Analysts expected $9.54 on revenue of $104.5 billion, according to FactSet. Amazon also guided for higher-than-expected Q2 revenue.

AstraZeneca Soars

AstraZeneca (AZN) gapped up and soared nearly 5% in fast turnover, retaking its 200-day line for the first time since January. AstraZeneca stock remains about 17% off its 52-week high.

The U.K.-based drugmaker’s Q1 results topped views, thanks to strong sales of its cancer-treating drugs. Its coronavirus vaccine also contributed $275 million in sales. But its raised guidance for 2021 excludes the impact of the vaccine. AstraZeneca sells its Covid vaccine outside the U.S.

The Innovator IBD 50 ETF (FFTY) dipped 1%, on track for a fourth straight decline. BioNTech and Cricut (CRCT) soared more than 5% each, but 360 DigiTech (QFIN), At Home Group (HOME) and Louisiana Pacific (LPX) weighed.

Follow Nancy Gondo on Twitter at @IBD_NGondo

YOU MAY ALSO LIKE:

Top Stock Setting Up New Buy Point After 800% Rally

Find Today’s Best Growth Stocks To Watch With IBD 50

Learn How To Time The Market With IBD’s ETF Market Strategy

See Stocks On The List Of Market Leaders With IBD Leaderboard

Five Stocks Showing Bullish Declines; Earnings Week Lessons