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 (TCOM), (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.
Want To Get Quick Profits And Avoid Big Losses? Try SwingTrader
Best Growth Stocks To Buy And Watch
IBD Digital: Unlock IBD’s Premium Stock Lists, Tools And Analysis Today
How To Spot Stock Market Tops
When It’s Time To Sell Your Favorite Stock
1:03 PM ET Stock market woes intensified last week with the major indexes breaking key levels. Apple and Tesla lead five stocks to…
1:03 PM ET Stock market woes intensified last week with the major indexes…
Get instant access to exclusive stock lists, expert market analysis and powerful tools with 2 months of IBD Digital for only $20!
Get market updates, educational videos, webinars, and stock analysis.
Learn how you can make more money with IBD’s investing tools, top-performing stock lists, and educational content.
Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. The information has been obtained from sources we believe to be reliable; however no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Authors may own the stocks they discuss. The information and content are subject to change without notice.
*Real-time prices by Nasdaq Last Sale. Realtime quote and/or trade prices are not sourced from all markets.
Ownership data provided by Refinitiv and Estimates data provided by FactSet.
© 2000-2021 Investor’s Business Daily, LLC. All rights reserved