The Dow Jones Industrial Average traded lower in today's market. Over the past hour, the S&P 500 also traded near its lows of the day while the Nasdaq held a slight gain. Tech stocks diverged away from the rest of the market on Monday.
Stock Market Today
In afternoon trade, the Nasdaq composite led on the upside with a gain of less than 0.4%. The S&P 500 held a small loss of 0.3% while the Dow Jones industrials were down about 0.7%. Meanwhile, the small-cap Russell 2000 index fell 0.3%. Volume was running higher on the Nasdaq and on the NYSE vs. the same time Friday.
As for growth stocks, the Innovator IBD 50 ETF fell less roughly 0.4%. The ETF is testing support at its 50-day moving average. Stocks leading the downside in the index include Cleveland-Cliffs and Moderna, with losses of over 8% and 5%, respectively.
Moderna shares dropped in early afternoon trade and neared a recent buy zone of a cup-with-handle base with a 189.10 buy point. The stock never quite made it to the 20%-25% profit zone and shares could trigger a round trip sell signal if they fall back into the buy area.
Overall, IBD's software, oil and gas, and movie-related industry groups were among those leading the upside, while steel, retail and bank stocks underperformed.
Stocks In The News
On Monday, a few stocks from the MarketSmith Growth 250 list broke out and traded inside buy zones
Crocs gained over 4% and broke out from a flat base and its 110.01 buy point. Shares remain inside the buy zone which tops out at 115.51. The stock has surged more than 150% since it made new highs in September.
A standout feature for this stock are its rock-solid IBD Ratings, with a 99 Composite, a 96 RS Rating and a 99 EPS Rating.
Meanwhile, Bio-Techne, which manufactures biotechnology products and clinical diagnostic controls, gained over 1% as shares bounced off their 50-day line into a key buy zone. On Monday, the medical research equipment maker broke out from a flat base with 444.93 buy point. The stock has had a strong year so far with shares up 41% year to date.
Finally, semiconductor play Brooks Automation gained over 3% and broke out from a 103.69 entry in its cup with handle. In afternoon trading, the stock traded back below its key buy point and remains just 1% away from the buy area.
Dow Jones Today
As for blue chips, Walgreens Boots Alliance, Caterpillar, Goldman Sachs and JPMorgan were among those leading the downside with losses of 1% or more.
Meanwhile, Apple was among top gainers as shares rallied 1.8% in heavy volume. The iPhone maker is working on new Apple Watch models with a faster processor and better screen, according to Bloomberg. The stock reclaimed its 50-day moving average and is on track for its sixth gain of the past seven sessions.
The stock is also currently shaping a new flat base with a 137.17 buy point after triggering the 7%-8% loss-cutting sell rule from a 135.63 entry in early May.
Another Dow tech giant Salesforce.com outperformed on Monday with a gain of 1.8%. Shares rose in heavy volume as the enterprise software maker continues building the right side of a long consolidation with a 271.02 buy point, according to MarketSmith chart analysis.
Follow Rachel Fox on Twitter at @foxonstocks for more Dow Jones and market commentary.
