The Dow Jones Industrial Average fell Monday as the Russell 2000 turned negative for 2023. That came as Coinbase (COIN) and Riot Blockchain (RIOT) surged while top crypto Bitcoin rallied.
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Meanwhile, a Cathie Wood stock plummeted and Tesla (TSLA) reversed amid delivery data. Plus, a trio of noteworthy stocks moved toward buy points Monday — Cadence Design Systems (CDNS), Logitech International (LOGI) and FedEx (FDX).
The tech-heavy Nasdaq was faring best out of the major indexes as traded virtually flat. Leaderboard stock Zscaler (ZS) stood out with a gain of around 3%.
But the benchmark S&P 500 had a tougher time as it fell 0.6%. Discover Financial Services (DFS) was one of the few contrarians here as it managed a 5% gain. The credit card company announced it would comply with calls from the Federal Deposit Insurance Corp. to improve consumer compliance and corporate governance.
The S&P 500 sectors were almost all negative. Utilities and energy lagged the most in the stock market today. Only technology and communication services managed to stay in positive territory.
Small caps were getting mauled by the bears, with the Russell 2000 down almost 2%. The index turned negative for 2023. Growth stocks also took a lashing, with the Innovator IBD 50 ETF (FFTY) down more than 1%.
Dow Jones Today: Microsoft, Apple Stock Shine
The Dow Jones Industrial Average lagged the other major indexes as it tumbled more than 200 points or 0.4%. Apple (AAPL) and Microsoft (MSFT) bucked the trend, as both rose nearly 1%.
But UnitedHealth (UNH) fared best on the Dow Jones today as it popped 1.5%. It recently rallied back above its 50-day and 200-day moving averages, MarketSmith analysis shows.
Boeing (BA) and 3M (MMM) were the worst laggards, falling more than 2% and nearly 4%, respectively.
Cathie Wood Buys BEAM, Stock Plummets
The current market shows even the most famous investors can have negative trades. That was underlined after a Cathie Wood buy took a swan dive Monday.
On Friday, Wood’s ARK Innovation ETF (ARKK) bought 59,846 shares in biotechnology player Beam Therapeutics (BEAM). But Beam was under heavy selling pressure heading into the close Monday, falling around 11%.
The stock was trying to move back toward its 50-day moving average but now has skidded nearly 17% below the key benchmark, MarketSmith analysis shows.
The Cambridge, Mass.-based company operates in the field of gene therapies and genome editing. The firm uses base editing, a next-generation form of CRISPR gene editing.
IBD recommends buying stocks with strong earnings and price performance rather than laggards. Look for leaders in strong industries that are showing superior earnings growth and sales, such as those in the IBD 50.
Tesla Stock Reverses
Electric-vehicle giant Tesla was fighting to stay positive after the firm posted a decline in third-quarter deliveries.
Led by Chief Executive Elon Musk, Tesla said Monday it produced 430,488 vehicles and delivered 435,059 during the third quarter. Ahead of the release, analysts expected deliveries of roughly 461,000, according to FactSet.
The news comes after Tesla launched a slightly updated Model Y in China on Sunday. The battery life for both the base and long-range variants was increased.
Tesla fought its way into positive territory before being dragged lower again as the session wore on. TSLA stock fell 0.5% heading into the close.
TSLA stock has formed a cup-with-handle base with a 278.98 buy point but it faces a challenge to overcome resistance at the 50-day moving average
Bitcoin Pops; COIN, RIOT Stock Gains Fade
Cryptocurrency icon Bitcoin has climbed nearly 3% over the past 24 hours according to CoinDesk data. The digital currency is now up nearly 68% in 2023.
Gains were fading for crypto stocks, though. Trading platform Coinbase reversed fractionally lower. COIN stock also failed in an attempt to get back to its 50-day line.
Other digital currency plays were faring better though. The Grayscale Bitcoin Trust (GBTC) remained up almost 2%.
But it was Bitcoin mining play Riot Blockchain that impressed the most as it soared more than 6%, though it was also off highs for the day.
Outside Dow Jones: 3 Stocks Eye Entries
With the market in the grip of a correction, now is the time to bulk up one’s watchlist. Here are a selection of names eyeing entries.
Cadence Design moved toward a cup-with-handle buy point of 247.50. The relative strength line looks muscular. Further, overall performance is strong here, which is reflected in its IBD Composite Rating of 93 out of 99.
Meanwhile, computer peripherals play Logitech International has formed a double-bottom base with an ideal entry point of 72.46.
Big Money has been a net buyer of LOGI stock of late, with its Accumulation/Distribution Rating coming in at B.
Finally, FedEx is holding firm near a flat base buy point of 270.95. Stock market performance is its strongest suit here. FDX is in the top 5% of stock in terms of price performance over the past 12 months.
Please follow Michael Larkin on X, formerly known as Twitter, at @IBD_MLarkin for more analysis of growth stocks.
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