The Dow Jones Industrial Average tracked lower on Friday, as the major indexes are heading for weekly losses. Stocks on the move in today's market included tech giants Apple and Amazon, which fell about 6% each. Meanwhile, Google parent Alphabet rose 4% after reporting better-than-expected earnings.
Stock Market Today
The S&P 500 declined 1.8% in early afternoon trading, while the Nasdaq composite led the market on the downside with a 2.8% loss, wiping out nearly all its gains from Thursday. The Dow Jones fell 1.4%, while the Russell 2000 small-cap index also traded 1.4% lower.
Volume was mixed, lower on the NYSE and higher on the Nasdaq vs. the same time Thursday. Despite the major indexes rising yesterday, the lack of rising volume Thursday was disappointing. Stocks selling off in heavy volume indicates heavy institutional selling.
Earlier this week, IBD's market outlook was downgraded to "uptrend under pressure" status. Major indexes posted large losses on Monday due to a spike in U.S. coronavirus cases. But despite the recent volatility, the Nasdaq still holds a year-to-date gain of 25% through Thursday's close. Meanwhile, the S&P 500 is up 2% for the year. The Dow is lagging with a 7% decline.
According to yesterday's The Big Picture column, "An uptrend under pressure means investors need to be much more cautious, but not overly bearish, so don't be 100% in cash." Read The Big Picture for detailed daily market analysis.
U.S. Stock Market Today Overview |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 26306.43 | -352.68 | -1.32 |
| S&P 500 | (0S&P5) | 3253.54 | -56.57 | -1.71 |
| Nasdaq | (0NDQC ) | 10889.43 | -296.16 | -2.65 |
| Russell 2000 | 152.75 | -2.39 | -1.54 | |
| IBD 50 | 35.84 | -1.09 | -2.95 | |
Last Update: 1:14 PM ET 10/30/2020 |
||||
Dow Jones Today
As for the Dow Jones, the majority of the 30 components traded lower, with Apple stock leading on the downside following yesterday's gain on earnings. The iPhone maker reported fiscal Q4 results that beat analysts' estimates on both EPS and sales. Revenue rose in all regions of the world, except China, where it fell 29% to $7.95 billion.
The Dow tech giant fell over 5% Friday after being turned away at the 50-day line. While shares are falling further away from the nearest 125.49 buy point, the stock still maintains a strong RS Rating of 92.
After Earnings: Amazon, Google, Facebook
Three of the four FANG members reported earnings after the close Thursday, including Amazon, which unexpectedly fell 4% in today's market. Shares sold off in heavy volume even though the internet giant announced better-than-expected Q3 results.
The e-commerce firm reported adjusted earnings growth of 192% year over year. EPS came in at $12.37 per share on $96.1 billion in revenue. Analysts expected earnings would rise 77% to $7.48 a share on revenue of $92 billion.
Amazon has formed a cup with handle with a 3,496.34 buy point. The stock is roughly 13% away from the current entry.
Additionally, fellow FANG stocks Alphabet and Facebook reported earnings late Thursday. Facebook fell 6.4% despite topping estimates, while Alphabet rose 4% after beating views.
Alphabet stock is currently 6% away from a 1,726.10 buy point. While the stock's RS line has spiked over the past few days and is hitting a new high, the RS Rating is 75, which is below the ideal 80 minimum for top growth stocks.
The Innovator IBD 50 ETF sold off 3% on Friday, after breaking below key support at its 50-day line earlier this week. Biggest decliners in the growth-focused ETF included Digital Turbine, Meridian Bioscience and Atlassian, which fell 15.1%, 10.4% and 7.1%, respectively.
Follow Rachel Fox on Twitter at @foxonstocks for more market insight and Dow Jones commentary.
