Key indexes closed at or near session lows in the stock market today, after three days of solid gains for the Dow Jones Industrial Average.
XThe S&P 500 led the decline with a 0.8% loss, the Nasdaq composite fell 0.7% and the Dow Jones industrials slid nearly 0.7%. Small caps tracked by the Russell 2000 gave up 0.6%. Preliminary data showed lighter volume on the NYSE and Nasdaq vs. Monday.
The pause wasn't a big surprise after three solid up sessions in the Dow Jones and S&P 500. The Nasdaq hit resistance at its 50-day moving average after two straight days of gains.
Dow Inc. (DOW), which tumbled 5%, weighed on the Dow Jones index. Shares are trading near their lowest levels since being spun off by DowDuPont in April. BofA Merrill Lynch last week lowered its rating and cut its price target on the chemicals stock.
Other blue chip names pressuring the Dow Jones index included American Express (AXP), IBM (IBM) and UnitedHealth Group (UNH), down more than 1.4% each.
Home Depot (HD) offered a bright spot in a sea of red, rising 4.4% after its Q2 earnings topped views. The stock gapped up in heavy volume and is now just shy of a 219.40 buy point. Check out this column to learn more about Home Depot stock.
Other Dow Jones Stocks Buck Decline
Apple (AAPL) finished flat, after giving up small gains heading into the close. On Monday, it rose 1.9%. Shares are close to retaking a 215.41 buy point, but the stock is compromised after a sell signal. The only other Dow stock to avoid a loss was United Technologies (UTX), which edged less than 0.1% higher.
Walt Disney (DIS) reversed slightly higher ahead of the close, after falling as much as 1.5% early. It settled for a 0.1% loss. Disney stock fell after a former financial analyst accused the media and theme parks giant of overstating its revenue.
Department stores, banks, and oil and gas stocks were among the biggest industry group losers. Meat products, gold miners and software stocks outperformed.
Beyond Meat (BYND) gapped up 6.6% to lead meat products, the No. 2 industry group. JPMorgan raised its rating on the plant-based meat products maker to overweight from neutral, citing its more attractive valuation and potential to partner with other food industry players. Beyond Meat came public in May at 25 a share. Though it's 35% off a late July peak, the stock is still up more than 500% from the IPO price.
Over in the IBD 50, Planet Fitness (PLNT), Chinese live-streaming gaming platform Huya (HUYA) and private mortgage insurance firm NMI Holdings (NMIH) gave up 2% or more. All three declined in volume well lower than normal.
Paysign (PAYS) surged 11% in above-average trade. The stock may be shaping a new cup base. Analysts expect the prepaid card and payment processing company to grow earnings 320% this year to 21 cents a share.
IBD 50 Gold Miner Shines
Kirkland Lake Gold (KL) leapt 3% to rebound off its 50-day line. That marks its second test of the 10-week line following a June breakout, but volume was below average Tuesday.
The Innovator IBD 50 ETF (FFTY) was flat in today's stock market, after three straight up sessions.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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