The Dow Jones Industrial Average fell back from record levels as stocks closed the week on a sour note. It comes after a weak earnings report and the disclosure from Amazon.com (AMZN) that it's been hit with a big EU fine. Procter & Gamble (PG) was the top blue chip, while China EV stocks including Nio (NIO) rallied. American EV giant Tesla (TSLA) also rose.
XBreakouts were hard to come by in a tough day for growth stocks. However, solar play Enphase Energy (ENPH) moved above an aggressive buy point.
Nasdaq Falls Back As Growth Stocks Get Caned
The Nasdaq composite fared worst out of the major indexes, dipping about 0.7%. Atlassian (TEAM) stock made a tremendous gain, almost 22%, on strong earnings as more businesses move to the cloud. EBay (EBAY) was a big laggard, dipping around 7%.
The S&P 500 was also struggling, falling about 0.5%. It did manage to rise for a sixth straight month however. Dexcom (DXCM) led here, rising about 13%, while Newell Brands (NWL) lagged, dipping just over 9%.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 34936.13 | -148.40 | -0.42 |
| S&P 500 | (0S&P5) | 4395.29 | -23.86 | -0.54 |
| Nasdaq | (0NDQC ) | 14672.68 | -105.59 | -0.71 |
| Russell 2000 | (IWM) | 221.11 | -1.41 | -0.63 |
| IBD 50 | (FFTY) | 45.14 | -0.61 | -1.33 |
Last Update: 4:08 PM ET 7/30/2021 |
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The S&P sectors were mixed, with real estate and health care making the best gains. Consumer discretionary was lagging following Amazon's earnings miss.
Small caps were also mauled by the bears, with the Russell 2000 falling 0.6%.
However, it was growth stocks that fell the hardest, with the Innovator IBD 50 ETF (FFTY) closing down 1.3%. The loss comes after an 8.7% jump last week.
Dow Jones Dips As PG Pops
The Dow Jones Industrial Average fared best out of the major indexes, but was still down about 0.4%. It had been trading near record levels.
Procter & Gamble was the top Dow Jones component, closing up about 2% after revenue growth accelerated a touch from Q1. Sales rose 7% to $18.9 billion vs. a 5% top-line increase in the first quarter.
Caterpillar (CAT) was the biggest Dow laggard, dipping almost 3%.
Amazon Stock Slammed Amid Earnings, EU Fine
Amazon stock was getting hammered following disappointing earnings and the disclosure of an EU fine. It slipped more than 7%.
While it found support at the 200-day line, it gapped under its 50-day moving average. The relative strength line also fell hard. Volume was massive. The e-commerce giant reported Q2 adjusted earnings that topped views. But its sales missed, and Amazon issued a disappointing Q3 forecast.
Amazon stock fell about 8%, logging its largest daily percent drop since May 1, 2020, when it fell 7.6%. AMZN stock also recorded a 9% weekly dip, its worst since Feb. 28, 2020, when it fell 10.13%.
It also emerged Friday that Amazon is facing a record fine for allegedly breaking the EU's signature privacy law, known as GDPR. Luxembourg's National Commission for Data Protection levied a penalty of around $887 million on the firm over the way it uses customer data for targeted advertising purposes.
Amazon revealed the ruling in an SEC filing Friday in which it disputed the decision, saying it pans to defend itself "vigorously in this matter."
Market Rally Shows Quiet Strength; Amazon Lessons For 3 Key Stocks
Nio Stock, China EV Plays Rally
China EV stocks were rallying, with Nio gaining nearly 5%. The move was enough to see it rise above its 50- and 200-day moving averages. But there's no new buy area so far.
Nio announced Friday that it will report second quarter results on Aug. 11. And a local unconfirmed Chinese report said Nio would release a cheaper model from a "sub-brand" next year.
Xpeng Motors (XPEV) fared even better, popping by more than 6%. Li Auto (LI) did best of all, charging just shy of 9% higher. Neither stock is in a proper base so far. They rallied despite Beijing continuing to rein in the tech sector.
Meanwhile, Tesla turned in a gain of about 1.5%. The EV giant is trying to rally back after slipping earlier this week.
This New Leader Passes Buy Point
Enphase Energy rose above an aggressive buy point near 181 after rallying above a very short trend line.
The move saw the stock added to the prestigious Leaderboard list of leading growth stocks. The solar energy technology specialist has been rising following Tuesday's earnings report. The stock is now looking to move above a handle buy point at 196.12.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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