Stocks gapped down at the open and closed near session lows after President Donald Trump threatened new tariffs against Mexico. The Dow Jones industrials, S&P 500 and Nasdaq sliced long-term support lines in the stock market today.
XThe Nasdaq plunged 1.5%, the Dow Jones Industrial Average sank 1.4% and the S&P 500 shed 1.3%. Small caps also sold off with the Russell 2000 down 1.4%. Preliminary data showed volume on the NYSE and Nasdaq coming in higher than Thursday's levels.
For the week, the Dow Jones index sank nearly 3%, while the S&P 500 and Nasdaq fell 2.6% and 2.3%, respectively. All three closed below their 40-week moving average lines.
The Dow Jones was a sea of red with only one stock, McDonald's (MCD), managing a tiny gain. Verizon (VZ) led the sell-off with a 4.4% drop. The telecom stock gapped under its 200-day moving average, its first close below the line in four months. Shares dropped on reports that Amazon (AMZN) may enter the wireless services market.
Six other Dow Jones stocks fell more than 2% apiece, including Nike (NKE), Dow (DOW) and Goldman Sachs (GS). Nike and Goldman are trading at their lowest levels in over four months. Dow, meantime, plummeted to an all-time low since its April 2 spinoff from DowDuPont (DWDP).
The Nasdaq fared worst as big-cap techs got clobbered. Facebook (FB) fell 3% to breach its 50-day line for the first time since Jan. 7. Amazon and Netflix (NFLX) shed more than 2% each, while Alphabet (GOOGL) gave up 1.3%.
Apple (AAPL) lost 1.8% to mark a 2-1/2-month low. It triggered a sell signal last week after falling more than 8% from a 197.79 buy point.
Gold Shines In Flight To Safety
Miners, utilities and insurers were among the few groups scoring decent gains. Gold prices jumped 1.4% to $1,310.50 an ounce as investors fled to safety.
Gold mining ETFs rallied. VanEck Vectors Gold Miners (GDX) gapped up and leapt 4.5% to reclaim its 50-day moving average, on track for its first close above the line since April 10. VanEck Vectors Junior Gold Miners (GDXJ) gapped up and surged nearly 4% to retake its 200-day line for the first time in over a month.
Of the biggest gold ETFs, SPDR Gold Shares (GLD) ($30.3 billion) and iShares Gold Trust (IAU) ($11.7 billion) rose more than 1% each. Both popped above their 50-day lines.
IBD 50 Name Soars
IBD 50 stock Kirkland Lake Gold (KL) vaulted 6% in above-average trade. The stock is approaching a 35.30 buy point in a cup-with-handle base. It's less than 3% from the entry. However, all buys are highly risky with the market in correction.
Other IBD 50 stocks on the rise included a pair of REITs, Store Capital (STOR) and Essential Property Realty Trust (EPRT), up about 2% each. Chinese educator New Oriental Education & Technology (EDU) added nearly 2%.
Tech names led the downside on the IBD 50: cybersecurity stock Fortinet (FTNT) sank 5%, tech services firm CDW (CDW) shed 4% and Upland Software (UPLD) fell nearly 3%.
The Innovator IBD 50 ETF (FFTY) slipped 0.8% in today's stock market.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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