Dow Jones Falls Modestly Amid More Tech Carnage; Nasdaq 100 Probes Key Support Level – Investor's Business Daily

BREAKING: Market Woes Return; More Reasons To Play Defense
Stocks were sharply lower again in afternoon trading Friday, after the World Health Organization said the omicron Covid variant is now in 38 countries and could be more contagious than the delta variant. The Dow Jones Industrial Average held up relatively well, down just 0.3%, as it tries to hold support at its 200-day moving average, a key support level.
Apple (AAPL), Boeing (BA) and Microsoft (MSFT) lagged in the Dow Jones today, while IBM (IBM), Walgreens (WBA), 3M (MMM) and Walmart (WMT) held gains north of 1%.
The selling was concentrated again in technology stocks. The Nasdaq composite slumped 2.2%, and the Nasdaq 100 was down 2%. Big decliners in the Nasdaq 100 included DocuSign (DOCU), which sold off sharply despite another quarter of strong earnings and sales growth. Investors frowned on weak Q4 guidance. Even with Friday’s decline, DocuSign is still a pricey stock valuation-wise, with a trailing P-E ratio of 126.
China stocks also lagged badly in the Nasdaq 100, rattled by news that Didi Global (DIDI), a Chinese provider of mobility services, plans to delist from the NYSE and move to a Hong Kong listing. That weighed on shares of Trip.com (TCOM), JD.com (JD), Baidu (BIDU) and Pinduoduo (PDD).
The S&P 500 slumped 1% and the Russell 2000 small-cap index gave back 1.7%. Volume on the NYSE and Nasdaq was tracking close to Thursday’s levels.
Sentiment wasn’t helped by a sluggish November jobs report. Nonfarm payrolls increased 210,000, well below the Econoday consensus of 545,000. There were a couple of bright spots, though. The unemployment rate fell more than expected to 4.2%, and September and October job growth was revised higher by 82,000.’
It’s A Grizzly Market Out There: Here’s What To Do Now
 
Several growth stocks in the MarketSmith Growth 250 came under more selling pressure.
Adobe (ADBE) flashed a sell signal with a decisive break of its 50-day moving average. Shares slumped 9.1%. Other software stocks like HubSpot (HUBS), Zscaler (ZS) and ZoomInfo (ZI) were also hit hard.
Adobe is still an IBD Long-Term Leader, along with other Leaderboard stocks like Alphabet (GOOGL), Microsoft (MSFT) and ServiceNow (NOW).
The Innovator IBD 50 ETF (FFTY), which tracks the performance of growth stocks in the IBD 50, was down around 4%, firmly entrenched below its 200-day line. About 20 stocks in the index were down at least 4% each.
China-based EV maker Xpeng (XPEV) slumped 9%, on pace for its third straight above-average volume decline. The weakness comes after a breakout attempt from a 16-week consolidation.
Pockets of strength in the stock market are few and far between, but homebuilders, trucking stocks and auto parts retailers continue to hold up well.
In the trucking group, it’s been an orderly pullback for ArcBest (ARCB) as it trades near the 100 level. The stock is pulling back in mostly light volume after a heavy-volume breakout over a 91.43 buy point. Knight-Swift Transportation (KNX) is also showing strength and support in the group.
Luxury homebuilder Toll Brothers (TOL), featured in the latest Earnings Preview story, eased 0.4% Friday, after a heavy-volume breakout on Thursday.
Follow Ken Shreve on Twitter @IBD_KShreve for more stock market analysis and insight.
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