The Dow Jones Industrial Average outperformed Friday with a mostly flat performance in afternoon trading. But the Nasdaq composite reversed sharply lower after a bearish reversal Thursday brought the index down to its 50-day moving average. The Dow Jones industrials erased a 294-point intraday gain to break-even afternoon trading.
Several top stocks took hits in the Nasdaq 100, including Advanced Micro Devices (AMD), Apple (AAPL), PayPal (PYPL) and Lululemon (LULU). AMD stock is nearing a first test of its 10-week moving average, while Apple is facing a critical test of its 10-week line. PayPal and Lululemon are below their 10-week lines.
In afternoon trading, the Nasdaq was down 1.3%. The S&P 500 and Russell 2000 small-cap index fell about 0.4% each. Volume on the NYSE and Nasdaq was lower compared to the same time Thursday.
The Innovator IBD 50 ETF (FFTY) held up relatively well, down 0.8%, helped by strong showings from IBD 50 stocks like PerkinElmer (PKE) and Thermo Fisher Scientific (TMO). PerkinElmer was Thursday’s IBD 50 Stocks to Watch pick.
U.S. Stock Market Today Overview
Last Update: 1:28 PM ET 9/11/2020
Stock Market Movers
Several Dow Jones stocks showed gains of 1.5% or more, including Dow Inc. (DOW), Caterpillar (CAT), Coca-Cola (KO) and 3M (MMM). Dow has a relative strength line in new high ground after the stock broke out over 46.03 buy point last month.
In other stock market news, Peloton (PTON) reversed lower after soaring 8% at the open. Late Thursday, the at-home fitness leader delivered blowout results and gave bullish guidance, saying it expects strong demand to continue into 2021.
Tesla (TSLA) also reversed lower, but it’s still holding support at the 50-day moving average. Tesla was up nicely in premarket trading on reports the company will export China-made Model 3 vehicles to Asia and Europet.
In other stock market news, Adobe (ADBE) backed off highs despite more bullish analyst commentary. On the heels of price targets hike Thursday from UBS and RBC Capital, Cowen & Company chimed in with an upgrade Friday to outperform from market perform and raised Adobe’s price target to 555 from 400. Adobe, which reports earnings Tuesday after the close, is a Leaderboard stock. It’s also the focus stock in the latest Earnings Preview column, which highlights possible earnings options trades.
Several Leaderboard stocks outperformed Friday, including LGI Homes (LGIH). Homebuilders have been a nice pocket of leadership in the market. Lennar (LEN) is getting support at its 10-week moving average ahead of its earnings report Monday after the close.
Follow Ken Shreve on Twitter @IBD_KShreve for more stock market analysis and insight.
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