Dow Jones Drops As Inflation Heats Up; Apple Stock Sells Off On iPhone News

The Dow Jones Industrial Average dropped 200 factors Wednesday, as a key inflation gauge outran estimates. Apple inventory offered off on iPhone information, whereas Dow Jones inventory JPMorgan slid regardless of robust earnings outcomes.


Among the Dow Jones leaders, Apple (AAPL) offered off 1.3% Wednesday, whereas Microsoft (MSFT) moved up 0.9% in in the present day’s inventory market. American Express (AXP), Merck (MRK) and (CRM) eyed new purchase factors within the present inventory market correction. And JPMorgan (JPM) slid over 2% regardless of robust earnings outcomes.

Tesla (TSLA) gained 0.5% Wednesday, on tempo to increase a win streak to a few classes.

Among the highest shares to look at, Advanced Micro Devices (AMD), Netflix (NFLX) and Palo Alto Networks (PANW) are in or close to new purchase zones, though the market, for now, stays in a correction.

Advanced Micro Devices, Microsoft and Tesla are IBD Leaderboard shares. Palo Alto Networks is an IBD SwingTrader inventory. Microsoft and Salesforce featured on this week’s Stocks Near A Buy Zone column.

Dow Jones Today: Inflation Picks Up

The Dow Jones Industrial Average moved down 0.3%, whereas S&P 500 misplaced lower than 0.1%. The Nasdaq composite rallied 0.4% in noon commerce.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 34179.55 -198.79 -0.58
S&P 500 (0S&P5) 4336.14 -14.51 -0.33
Nasdaq (0NDQC ) 14492.10 +26.17 +0.18
Russell 2000 (IWM) 220.68 -0.84 -0.38
IBD 50 (FFTY) 47.37 +0.28 +0.59
Last Update: 10:26 AM ET 10/13/2021

Consumer costs elevated greater than anticipated in September, the Labor Department reported Wednesday. The client value index rose 0.4% for the month and 5.4% 12 months over 12 months. Econoday estimates anticipated inflation to rise 5.3% in September from a 12 months earlier and a seasonally adjusted 0.3% in September from August. The 10-year Treasury yield dropped 4 foundation factors, to 1.54%.

Meanwhile, at 2 p.m. ET, Fed minutes from the September coverage assembly will probably be launched.

Among trade traded funds, Innovator IBD 50 (FFTY) gained 0.7% Wednesday. Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.5%. And the SPDR S&P 500 ETF (SPY) descended 0.1%.

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Stock Market Rally Attempt

The Nasdaq and S&P 500 proceed to carry above final week’s correction lows, however each prolonged dropping streaks to a few classes with modest losses Tuesday. Meanwhile, the Dow Jones Industrial Average once more discovered resistance at its 50-day transferring common. Still, the present rally try continues.

On Tuesday, The Big Picture commented, “Like some panelists on IBD Live like to say, technically, both the S&P 500 and the Nasdaq stand in no man’s land — that is, we see both indexes in the region between the 50-day and 200-day moving averages. This makes it awfully difficult, if not impossible, to determine which direction is next for stocks.”

Five Best Dow Jones Stocks To Watch Now

Dow Jones Earnings: JPMorgan

JPMorgan reported better-than-expected Q3 earnings early Wednesday. JPMorgan earnings per share jumped to $3.74 a share. Revenue rose barely to $30.44 billion. Both numbers topped estimates.

Shares slid over 2% in morning commerce, giving up a cup with deal with’s 163.93 purchase level, based on IBD MarketSmith chart evaluation.

Dow Jones Stocks To Watch: American Express, Merck, Salesforce

Dow Jones leaders American Express, Merck and Salesforce are blue chip shares to look at in in the present day’s inventory market motion.

IBD SwingTrader inventory American Express is approaching a 179.77 purchase level in a cup with deal with, based on IBD MarketSmith chart evaluation. Shares have been down 2.6% Wednesday and are about 4% away from the brand new purchase level.

Merck dropped 0.4% Wednesday, threatening to increase a dropping streak to 4 classes. Shares stay in purchase vary, however breakout good points are largely gone. On Oct. 1, Merck inventory broke out previous a 79.33 purchase level in a flat base after the corporate mentioned the Covid drug diminished the danger of hospitalization by half in a final-phase examine.

Dow Jones software program chief Salesforce is again in purchase vary previous a 275.32 purchase level in a cup with deal with following a Sept. 23 breakout transfer. Shares rallied 1.8% Wednesday.

American Express and Salesforce each have a robust relative energy line. Strong relative energy traces throughout weak common market circumstances are indicative of potential market leaders.

Stocks To Watch: AMD, Netflix, Palo Alto

IBD Leaderboard inventory Advanced Micro Devices is attempting to recapture its 50-day line, rallying practically 4% Wednesday. AMD can also be forming a cup-type base.

According to IBD Stock Checkup, AMD inventory boasts an ideal 99 IBD Composite Rating. The IBD Composite Rating identifies shares with a mix of robust basic and technical traits.

FANG inventory chief Netflix misplaced 0.1% Wednesday and stays simply off new highs. NFLX inventory is exterior the 5% purchase zone previous a 593.39 entry level in a consolidation amid the current international success of its collection “Squid Game.”

IBD SwingTrader inventory Palo Alto Networks is in purchase vary previous a 496.02 entry in a brief consolidation. Shares gained 0.6% Wednesday, and are simply above the brand new purchase set off. Bullishly, the inventory’s relative energy line hit a brand new excessive Tuesday, reaffirming the inventory’s management standing.

Join IBD consultants as they analyze main shares within the inventory market correction on IBD Live

Tesla Stock

Tesla inventory rallied 0.5% Wednesday, on tempo to make it three straight up days. TSLA shares are above a 764.55 purchase level in a cup with deal with.

TSLA shares closed Tuesday about 10% under report highs. On Jan. 25, Tesla inventory hit a report excessive of 900.40, after climbing as a lot as 93% from a 466 purchase level in a cup-with-handle sample.

Dow Jones Leaders: Apple, Microsoft

Among the highest Dow Jones shares, Apple offered off 1.3% Wednesday after Bloomberg reported the corporate will doubtless have to chop 2021 iPhone manufacturing objectives of 90 million handsets by as much as 10 million handsets as a consequence of prolonged chip shortages.

Apple inventory is on tempo to increase a dropping streak to a few classes, falling additional under its 50-day line.

Software big Microsoft gained 0.9% Wednesday, because the inventory battles to retake the 50-day line. A brand new flat base is forming with a 305.94 purchase level.

Be positive to observe Scott Lehtonen on Twitter at @IBD_SLehtonen for extra on progress shares and the Dow Jones Industrial Average.


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