The Dow Jones Industrial Average fell sharply after hitting a record high as stocks came under pressure. Apple (AAPL) triggered a sell rule, while Walmart (WMT) and Intel (INTC) were among the best performing blue chips.
Meanwhile EV stocks were outperforming, with Tesla (TSLA) rising on strong delivery data, though Nio (NIO) made even stronger gains.
Covid-19 cases continue to rise. In the U.S., confirmed cases have passed the 21 million mark with a death toll of around 360,000, according to Worldometer. Globally, cumulative coronavirus cases are near 85.7 million, with more than 1.8 million deaths.
Nasdaq, S&P 500 Lose Ground
The Nasdaq was the worst-performing major index, dropping by around 1.9%. Big winners included coronavirus vaccine play Moderna (MRNA), which was up almost 6% despite a pullback, and Zoom Video Communications (ZM), which rose more than 4%. The biggest loser was Workday (WDAY), as it gave up around 5%.
The S&P 500 was also struggling badly, losing around 1.9%. Major laggards included Teledyne Technologies (TDY), which lost almost 8%, Paycom Software (PAYC) and Norwegian Cruise Line (NCLH). The strongest performer was thermal imaging specialist FLIR Systems (FLIR), as it gained almost 19%.
Small caps were also struggling after a positive start, with the Russell 2000 giving up around 1.5%.
U.S. Stock Market Today Overview
Last Update: 1:18 PM ET 1/4/2021
Volume was up compared with the same time on Thursday. Trading rose by almost than 100% on the NYSE, and by more than 30% on the Nasdaq. CAN SLIM investors prefer volume to be lower on a down day.
Sectors were also struggling, with all being forced lower. Real estate and industrials were the worst-performing sectors, while materials and energy proved the most resilient.
Growth stocks had been faring relatively well before falling back, with the Innovator IBD 50 (FFTY) ETF giving up 1.3%.
Walmart, Intel Stock Gains Not Enough For Dow Jones
The Dow Jones Industrial Average was a sea of red. However it was still the best performing major index as it gave up 1.8%.
Intel was among the few stock managing to make up ground. It rose by around 0.8%. However, Walgreens Boots Alliance (WBA) fared best with a gain of around 3%, with Walmart close behind with again of more than 1%.
The biggest laggards included Coca-Cola (KO) and Boeing (BA), which both down around 4.5%. Coca-Cola is a major holding for Warren Buffett’s Berkshire Hathaway (BRKB).
Apple Stock Triggers Sell Rule
Leaderboard member Apple almost 3% Monday, MarketSmith analysis shows. The iPhone maker now looks on track to post a loss for a fourth day in succession.
Apple stock had broken out from a cup base buy point of 138.08 last Tuesday. However it ended up reversing lower and has struggled for momentum since. It has now fallen more than 7% below the buy point, which is a sell signal. However Apple stock is off lows.
In recent weeks, Apple shares moved above aggressive entries at 125.49 and 122.09.
The computing giant was the No. 1-performing Dow Jones stock for 2020. It posted a gain of more than 82%.
Tesla Stock, Nio Stock Gain On Deliveries
Newly minted S&P 500 member Tesla looks sure to gain for the seventh session in a row as it climbed on strong delivery data. It sits at record highs after gaining around 4%.
The stock was boosted after it revealed it had delivered 180,570 electric vehicles last quarter. This was above analyst expectations.
The IBD Leaderboard stock remains extended from a 466 proper buy point after breaking out of a cup-with-handle base. Tesla still has a best-possible IBD Composite Rating of 99. The EV leader’s stock rose more than 750% in 2020.
Chinese rival Nio accelerated even more, gaining 9%. Nio more than doubled December sales to 7,007 EVs, the company said Sunday. It’s aiming to make progress for the fourth day in a row and drive further clear of its 50-day moving average. It remains well shy of its Nov. 24 high of 57.20.
However Tesla’s namesake EV maker Nikola (NKLA) did not partake in the rally, slipping by more than 0.5%.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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