The stock market sold off Friday but pared losses as economic worries eclipsed good news about corporate earnings. The Dow was hit hard by declines in Johnson & Johnson (JNJ) and Boeing (BA).
XThe Dow Jones Industrial Average and Nasdaq led the way down on today's stock market, falling 0.6% each. The S&P 500 Index and small-cap Russell 2000 Index both escaped the worst of it, dropping 0.2% and 0.3%, respectively.
Volume was higher from the same time on Thursday. NYSE trade rose 22%, while Nasdaq added 6%.
Dow stalwart Johnson & Johnson stock plunged 6.2% after the FDA said it found asbestos in the company's widely-used baby powder. The gap-down in price pushed Johnson & Johnson stock below its 200-day and 50-day moving averages. It remains in a flat base, but well below its 145.08 buy point.
Also on the Dow, defense and aerospace giant Boeing stock plunged 6.7% after the FAA said the company misled it about the safety of its troubled 737 Max plane.
Better News Off The Dow
But not all was gloom on the big exchanges.
On the IBD 50 list, auto salvage company Copart (CPRT) rose 1.6%. It remains in a buy zone above a flat base with a 79.84 buy point.
Yoga and sportswear maker Lululemon Athletica (LULU) broke into a buy zone above a 204.54 entry from a flat base. It rose 1.1%.
IBD Stock of the Day Tempur Sealy's mattress showed some spring. Tempur Sealy (TPX) bounced 0.7%, adding to the breakout from an 81.95 buy point, but gave back all gains. Tempur Sealy stock carries a 96 Composite Rating and its Relative Strength line is now at a two-year high.
Another mattress monster, Sleep Number (SNBR), jumped 0.9%, after being above 1% for most of the day. Sleep Number stock is on IBD's Stock Spotlight list. Sleep Number stock is building the right side of a cup base below a 52.18 buy point.
Robotic surgery provider Intuitive Surgical (ISRG) surged 7% after reporting Q3 earnings that handily beat estimates. Intuitive Surgical stock has a 92 Composite Rating, and a strong 96 EPS Rating. But its Relative Strength Rating of 49 is weak. Still, the big gap up in price pushed shares into the buy zone above a 544.95 buy point out of a cup base.
Millions of Chipotle Mexican Grill (CMG) investors were no doubt grateful for cheap avocados, as Bank of America analysts cited lower prices for the green fruit and Chipotle's addition of carne asada to its menu for raising their EPS estimates. Chipotle stock rose 1.5%, as it nears an 858 buy point from a flat base.
Stock Market: Bad News Takes Over
Investors seemed to ignore the generally favorable reports on earnings to fret over global economic concerns. China reported lower-than-forecast 6% GDP growth in Q3, the slowest pace in 27 years, while the Conference Board reported its index of leading indicators fell for a second-straight month in September, a worrisome sign.
Also roiling the market's waters was fed Vice Chairman Richard Clarida's suggestion that the Fed is not "locked" on a set policy path, adding uncertainty to the market.
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