The Dow Jones Industrial Average slid more than 375 points before cutting losses midday Thursday, as the tech-heavy Nasdaq sold off sharply. Dow Jones leader Apple lost as much as 3%, while Tesla briefly skidded more than 7%. Snowflake dived as much as 15% after Wednesday’s powerful debut.
Warren Buffett-backed Snowflake (SNOW) tumbled 15% after soaring 111% in Wednesday’s debut.
Stocks in or near buy zones include Ke Holdings (BEKE). Shares tumbled 6% in midday trade in the wake of Wednesday’s breakout.
Dow Jones Today: Jobless Claims
Early Thursday, the Dow Jones Industrial Average fell 0.9% after briefly turning positive, while the S&P 500 moved down 1.4%. The Nasdaq composite dropped 2.2% in morning trade.
Thursday morning, the Labor Department said weekly jobless claims measured 860,000, down from the 893,000 a week ago, and just above the Econoday consensus estimate of 850,000.
U.S. Stock Market Today Overview
Last Update: 10:26 AM ET 9/17/2020
Among exchange traded funds, Innovator IBD 50 (FFTY) traded down 2.1% Thursday midday. The Nasdaq 100-linked Invesco QQQ Trust (QQQ) ETF fell 2.5%. Meanwhile, the SPDR S&P 500 ETF (SPY) moved down 1.5%.
Amid the coronavirus stock market rally, the tech-heavy Nasdaq is up 23.2% for the year through Wednesday’s close. Meanwhile, the S&P 500 is up 4.8%, while the Dow is down 1.8% year to date, through the Sept. 16 close.
According to the Worldometer data tracker, the cumulative number of confirmed U.S. cases topped 6.8 million on Wednesday. Total deaths topped 201,000.
The cumulative total of Covid-19 cases confirmed since the start of the outbreak worldwide topped 30 million Wednesday, with more than 945,000 virus-related deaths.
Coronavirus Stock Market Rally
According to IBD’s The Big Picture, the coronavirus stock market rally is seeing strong selling pressure after rebounding from lows more than five months ago, on March 23. The major stock indexes confirmed the rebound as a new uptrend on April 2. That uptrend is currently under pressure.
Wednesday’s Big Picture reported that, “The Fed concluded its two-day meeting Wednesday, but the Nasdaq didn’t like what it heard and reversed lower after getting resistance at its 21-day exponential moving average again.”
After Wednesday’s drop, the Nasdaq is about 8% off its all-time high. On Monday, the tech-heavy composite again reclaimed its key 50-day line, as it searches for much-needed support. The composite broke below that key level early Thursday.
Amid ambiguous general market conditions, investors should be more focused on locking in profits and cutting losses short. Another way to reduce risk is to move off margin. Be careful with new buys. The increased risk in the market should give you pause.
Stocks to watch include IBD Long-Term Leaders, companies with stable earnings growth and price performance.
Dow Jones News: Apple Stock
Among the Dow Jones stocks, Apple fell more than 3% before trimming losses early Thursday, adding to Wednesday’s 3% fall. Shares are once again testing their 50-day support level, a key area to watch.
Apple stock is about 56% above a 72.15 buy point in a cup-with-handle base. The blue-chip giant is the No. 2-performing Dow Jones stock for 2020, with a 52.7% advance through Wednesday’s close. Recent Dow Jones 30 addition Salesforce.com (CRM) is the top performer with a 54.1% year-to-date advance.
On Wednesday, the Warren Buffett-backed Snowflake IPO set a record as the largest U.S. software deal ever. The company priced 28 million shares at $120 each, above its estimated price range of $100 to $110 per share. The stock skyrocketed 111.6% to close at 253.93.
Early Thursday, shares briefly fell more than 15% and are more than 30% off their all-time high.
When it comes to investing in IPO stocks, investors should avoid the hype of the first few trading sessions and wait for an IPO base to form.
Warren Buffett’s Berkshire Hathaway (BRKB) is investing a total of $570 million in the offering.
Stocks On The Move: DraftKings
Hot IPO stock DraftKings rose 2% after reversing from sharp losses early Thursday. Shares are still extended above their 44.89 buy point in a cup base after Tuesday’s breakout move. The 5% buy zone runs up to 47.13.
Zoom Video slid 3% in morning trade. The stock is about 15% off its 52-week high. Zoom stock soared nearly 41% on Sept. 1 after strong earnings results.
Stocks In Or Near Buy Zones: Ke
Ke Holdings broke out above a 54.70 buy point in an IPO base on Wednesday with a 12% surge, according to MarketSmith chart analysis. The 5% buy zone goes up to 57.44. With the market uptrend under pressure, investors should be wary about buying stocks.
The stock fell 6% in morning trade.
Ke Holdings was Wednesday’s IBD Stock Of The Day.
According to IBD Stock Checkup, BEKE stock shows a solid 91 out of a best-possible 99 IBD Composite Rating. The Composite Rating — an easy way to identify top growth stocks — is a blend of key fundamental and technical metrics to help investors quickly gauge a stock’s strengths.
Tesla stock fell more than 7% Thursday morning before cutting losses to 3.5%, adding to Wednesday’s 1.8% decline that snapped a five-day win streak. The stock rebounded strongly from its 50-day moving average line last week.
Shares hit an all-time high on Sept. 1, topping out at 502.49 before reversing lower. Tesla is about 12% off its 52-week amid the recent action.
Dow Jones Leaders: Microsoft
Among the top Dow Jones stocks, software leader Microsoft fell 2.2% Thursday, as the stock continues to see resistance at its 50-day moving average line.
On Sept. 8, shares closed below their 50-day support level for the first time since the May 5 breakout above a cup-with-handle’s 180.10 buy point. The stock is about 12% off its 52-week high.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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