The Dow Jones Industrial Average closed lower in today's stock market. Investors braced for a wave of updates on U.S.-China trade negotiations regarding the Dec. 15 China tariff deadline. Major market leaders like Apple (AAPL), Advanced Micro Devices (AMD) and ASML (ASML) could be greatly impacted by the new tariffs.
XAmong key Dow stocks, Disney (DIS) dipped barely below its recent buy point.
Current Dow Jones Rally
The Dow Jones average pulled back nearly 0.4%, while the S & P 500 edged 0.3% lower. The Nasdaq was also off 0.3%. Volume edged slightly higher on the Nasdaq and slightly lower on the NYSE.
Among the growth stock ETFs, Innovator IBD 50 ETF (FFTY) slid 0.75%, but it's still up nearly 30% year to date. Leading growth stocks continue to show strength and major stock indexes are holding above their 10-week moving averages.
Investors appear more cautious given Trump's recent comment saying he's in no rush to settle issues with China and could delay the phase one trade deal until after the 2020 presidential election. An additional $156 billion in tariffs on consumer goods produced in China is set to take effect Dec. 15.
The VanEck Vectors Semiconductor ETF (SMH) fell nearly 0.7%. AMD weighed on the chip sector with a 1.8% loss and ASML fell 0.9%. But top chip stocks Qorvo (QRVO) and Skyworks Solutions (SWKS) rose after getting upgrades on expected demand due to growth in 5G technology.
Apple Stock Shows Strength Amid China Tariffs
Apple fell nearly 1.4% Monday, but the stock has shown noteworthy strength in the face of a tentative 15% tariff on the iPhone. Shares are up 21% since it cleared its most recent buy point at 221.47 from a flat base back in September. The stock's all-time-high Friday was accompanied by a record high relative strength line — a bullish sign. Analysts expect the Dow Jones stock to post double-digit annual EPS growth in both fiscal 2020 and '21.
IBD Leaderboard stock Disney rose 0.3% before reversing to a 0.9% loss, back below a key 147.25 buy point. The fall occurred despite comments from Credit Suisse that Disney+ subscribers could hit 20 million by year's end, up from a prior forecast of 14.3 million. Though the stock is extended from a recent double-bottom base with 140.18 buy point, the base's prior high plus 10 cents (147.25) also offers an alternative entry. The 5% buy zone tops out at 154.61.
Adobe Approaches Key Buy Point
Among the IBD 50 stocks, Adobe (ADBE) advanced 1% on news of acquiring Facebook's Oculus Medium VR Tool. The cloud software leader floats just below the 310.10 buy point from a cup-with-handle base. Adobe reports earnings Thursday after the close.
YOU MAY ALSO LIKE:
After Hours: Key Movers On News
Get Free IBD Newsletters: Market Prep | Tech Report | How To Invest
In A Flat Base, Dull Trade Can Be Positive Action
Get Notifications For Live IBD Videos By Subscribing On YouTube
