The Dow Jones Industrial Average rose even as growth stocks got walloped Monday. Also, House Speaker Nancy Pelosi moved to bring the $1 trillion bipartisan infrastructure bill forward. Tesla (TSLA) was outperforming, while Advanced Micro Devices (AMD) is offering up a new buying opportunity. Apple (AAPL) and Microsoft (MSFT) lagged.
There were a number of breakouts amid the mixed action, despite the fact that growth stocks were coming under pressure. Whiting Petroleum (WLL) became actionable amid broad strength in energy, with Nutrien (NTR) and United Rentals (URI) also passing buy points.
Nancy Pelosi Makes Infrastructure Move
House Speaker Pelosi told Democrats Sunday that a vote on the $1 trillion bipartisan infrastructure bill will be held on Thursday. This was later than she had indicated just days before.
This makes it even less likely that the controversial $3.5 trillion budget reconciliation bill — which will fund items including paid leave, child care, education and health care — will go to a vote this week.
Pelosi said over the weekend that this week “will be a time of intensity” and that it “seems self-evident” the final price tag of the so-called human infrastructure bill will drop.
Meanwhile, Senate Republicans look set to block a House-passed bill to temporarily fund the government and suspend the debt ceiling.
A Federal government shutdown is not necessarily a bad thing for stocks. During the last four government shutdowns that lasted more than five days, the S&P 500 made gains, according to Dow Jones Market Data analysis.
The most recent shutdown, which lasted 35 days from Jan. 25, 2019, saw the S&P 500 power 10% higher.
Nasdaq Slips As Growth Stocks Get Punished
The Nasdaq was the worst-performing major index, closing down 0.5% was slight. Trip.com (3.4) ended up the top performer, gaining more than 3%. Atlassian (TEAM) and Mercado Libre (MELI) were the worst laggard, both falling more than 5%.
U.S. Stock Market Today Overview
Last Update: 4:02 PM ET 9/27/2021
The S&P 500 had a better day, but still ended up posting a loss of 0.3%. Energy stocks were the clear winners, with Cimarex Energy (XEC) and Cabot Oil & Gas (COG) both rising more than 8%.
The S&P sectors closed mixed. Energy surged the most, with financials the next best performer. Real estate and health were the worst laggards.
Small caps powered higher, with the strength in financials an aid. The Russell 2000 popped 1.5%.
Growth stocks were getting mauled by the bears, however, with the Innovator IBD 50 ETF (FFTY) closing down over 2%. It turned in its worst performance in two weeks.
Dow Jones Today: Index Gains, Apple Stock And Microsoft Lag
The Dow Jones Industrial Average was the best-performing major index of the day. But its gains faded into the close, and it rose just 0.2%.
Chemicals stock Dow Inc. (DOW) was carrying the day, rising about 5%. It powered clear of its 10-day moving moving average but remains stuck under its 50-day line.
Apple stock was lagging, meanwhile, slipping nearly 1%. It is now trading beneath its 50-day moving average.
Microsoft stock also struggled, closing barely above its 50-day moving average as it gave up 1.7%. The software stock has formed a new flat base and is trading underneath the ideal buy point of 305.94.
Eight Stocks In Buy Zones As These Three Sectors Lead
Tesla Stock Surges As AMD Stock Offers Entry
Tesla stock was continuing to power higher after passing a buy point on Friday, rising more than 2%.
The stock was boosted after Friday night’s release of the FSD Beta request button. This allows Full-Self Driving owners or subscribers to opt in, albeit after a seven-day vetting period.
And on Saturday night, the firm released FSD Beta 10.1. This is the latest edition of its controversial driver-assist software.
Tesla has been making progress of late and has already accelerated past an early entry at the 730 level.
Its bullish action has earned it a place on the prestigious IBD Leaderboard list of leading growth stocks.
Meanwhile, Advanced Micro Devices has also been drafted to the roster after flashing a buy signal of its own.
The chip stock was added as it rebounds off its 10-week moving average.
AMD stock has an ideal buy point of 105.98, and it is actionable as high as 116.58. It is also forming a new base.
Strong all-around performance has earned it a perfect IBD Composite Rating of 99. Big money is backing the stock.
Energy Play Leads Stocks Passing Buy Points
Whiting Petroleum was one of the energy stocks benefiting from Monday’s strong action.
The stock managed to break out of a cup-without-handle base, according to MarketSmith analysis. The ideal buy point here is 57.69. It closed up 6%
This is a second-stage base, which is a positive. The relative strength line has also just bullishly hit a new high.
While earnings are not ideal, WLL stock is in the top 4% of stocks in terms of price performance over the past 12 months.
Nutrien stock managed to clear a flat base, and closed in a buy zone. The ideal entry here is 66.03. This is a first-stage pattern, which is ideal.
This fertilizer and feed maker boasts good performance, with particularly strong earnings.
United Rentals is also actionable after breaking out of a flat base. It is offering a buy point of 364.40.
The industrial equipment specialist has been seeing its relative strength line trend higher of late, as earnings accelerate.