The Dow Jones Industrial Average was under modest selling pressure Friday morning, but losses were more intense on the Nasdaq composite and Russell 2000. Nike (NKE) outperformed in the Dow Jones today, while top early gainers in the Nasdaq 100 included Adobe (ADBE), Advanced Micro Devices (AMD) and Nvidia (NVDA).
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The Dow Jones was slightly lower nearly two hours into the session, but the Nasdaq composite was down 0.8% and the Russell 2000 small-cap index slumped 1.1%.
NVDA stock reversed lower after the company introduced a new gaming chip in China to comply with tighter U.S. export restrictions. Nvidia was bumping against the 500 level as it forms a new base with a 505.48 entry.
Tesla (TSLA) was down 2% after some stiff selling Thursday. For Tesla bulls, Thursday’s weak price action wasn’t great to see after the stock gave an early buy signal Wednesday. The company is expected to release fourth-quarter delivery data early next week, most likely on Jan. 2.
In other electric vehicle news, Fisker (FSR) shares shot up more than 20% after the company said deliveries rose more than 300% between the third and fourth quarter. Demand is strong for the company’s Ocean sport-utility vehicle crossover. Note that Fisker is a highly speculative, low-priced stock.
Dow Jones Today
Health insurer UnitedHealth (UNH) edged higher after the health insurer agreed to sell its Brazil operations to the founder and former chief executive of health insurance firm Qaulicorp, the largest manager of collective health plans in Brazil.
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After an earnings sell-off late last week, Nike stock edged higher. But the stock’s converged 50- and 200-day moving average lines, currently just below 110, mark a potential resistance point to watch.
Boeing (BA) added 0.5%. Boeing is in a bullish technical setup like loads of other stocks right now. After hitting a low of 176 in late October, the stock started rising in heavy volume and hit a high of 265 earlier this month. It’s now trading tightly near highs while holding support at the 10-day line. It’s on the Leaderboard Watchlist.
While various overbought and sentiment indicators raise the likelihood of a pullback for the major stock indexes, the fact that everyone seems to be expecting it means it could take a while for a pullback to happen. The first two trading weeks of January will give hints about the stock market’s underlying health.
If price gains in the indexes come with higher volume, with declines in lower volume, that would bode well for stock market bulls. The bears want to see meaningful percentage declines in higher volume, otherwise known as distribution days.
As of last week, the latest Investors Intelligence survey of stock market newsletters writers showed the bulls at 56.9%, below the late-July peak of 57.1% and just ahead of a 9% pullback for the Nasdaq. At the very least, traders might consider taking partial profits by trimming some big winners.
Declining stock outnumbered advancers on the Nasdaq by nearly 2 to 1. The ratio was about 8 to 5 negative on the New York Stock Exchange.
Stocks On The Move
Outside the Dow Jones index, Leaderboard stock Uber (UBER) held up relatively well despite a downgrade from Nomura to neutral from buy. Shares dipped 0.6%. The news wasn’t all bad, though, because Nomura lifted Uber’s price target to 62 from 59.
Nomura also downgraded Lyft (LYFT) to reduce from neutral, citing shrinking market share. LYFT stock shed 2%. UBER shares have gained around 150% year-to-date, while LYFT shares are up 37%.
Inside the MarketSmith Growth 250, bitcoin miner Marathon Digital (MARA) rebounded more than 2% after shares plunged 9.5% Thursday in the heaviest volume in months. That’s a sign MARA could be topping.
Investors sold bonds, sending the 10-year Treasury higher by 3 basis points to 3.88%. West Texas Intermediate crude oil futures added 0.8% t0 just over $72 a barrel.
Follow Ken Shreve on Twitter @IBD_KShreve for more stock market analysis.
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Source: investors.com
