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Stock Market Claws Back From Early 105-Point Dow Loss, But Still Ends In Red; Apple, Nike Continue Bullish Moves

The stock market regained its footing after an up-and-down morning with investors facing competing trade narratives from the U.S. government, but shares still finished mostly down. A successful deal on the USMCA trade agreement to replace NAFTA helped offset growing concerns about a looming Dec. 15 deadline for the imposition of new U.S. tariffs on billions worth of Chinese-made goods. Among Dow stocks, gains for Apple (AAPL) and Nike (NKE) helped keep the index from a steeper decline.

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The Dow struggled early, but after moving back into the green fell 0.1% in late trading. The Nasdaq and the S&P 500 Index also both fell about 0.1%. Only the small-cap Russell 2000 index was up for the day, tacking on 0.1% in late-session trading.

Volume was mixed from the same time on Monday, with NYSE turnover up just over 3% and Nasdaq off marginally.

The Dow was weakened by Exxon Mobil (XOM) stock, which fell 0.9% despite a favorable ruling by a judge in a widely followed lawsuit that charged the oil giant had underplayed the costs of climate change on its business. The judge said that no evidence had been produced to show Exxon Mobil had "misled any reasonable investor" with its comments.

Meanwhile, Dow name 3M (MMM) also fell sharply, dropping 1.3% after a Citigroup analyst downgraded the stock to hold due to lingering concerns over the industrial giant's environmental liabilities.

Apple, Nike Boost Dow

Apple rose 0.6%, the biggest gainer on the 30-stock index but off from its early gains above 1%. It's now more than 20% extended from its breakout from a flat base with a 221.47 buy point. Apple's new iPhone 11 offering has been met by strong demand, bolstering Apple shares.

Nike also continued its run, rising 0.4%. The stock gapped up more than 2% on Dec. 5, bouncing off its 50-day moving average and emerging from a cup with handle above a 95.22 buy point. It's now in the buy zone.

Meanwhile, the IBD 50 list produced a number of winners for the day.

Israeli medical device designer InMode (INMD) rose 4%, nearly erasing Monday's big 4.7% decline. The IPO ran up initially after its early-August offering, but now appears to be forming a base.

Cancer-drug developer Incyte (INCY), a recent IBD 50 Stock to Watch, added 1% as it continued its rise out of a first-stage consolidation pattern with an 89.40 buy point. Incyte has been rising since late November, when the FDA approved a priority review of its proposed anti-gall bladder cancer drug pemigatinib.

Evoqua Water Tech (AQUA), a water treatment systems designer, spurted 3.6% and remains well extended above an early-August flat base breakout above a 14.98 buy point. Evoqua stock, with a 96 Composite Rating from IBD, despite a four-quarter earnings slump lasting from the second quarter of 2018 through the second quarter of this year. In calendar Q3, Evoqua reported a 31% EPS gain.

Stock Market: Trade Hopes Buoy Chinese Stocks

Two major IBD 50 stocks headquartered in China also posted big gains, on renewed hopes for a U.S.-China trade deal just days before new U.S. tariffs are set to go into effect.

Chinese online retailing giant Alibaba (BABA) gained 0.9% as it continued out of a three-weeks-tight formation with a 187.26 buy point. The company has a best-possible 99 EPS rating, and ranks No. 1 in its industry.

Social media company Momo (MOMO) found support at its 50-day moving average, adding 0.1%. Momo stock is moving in the upper half of a first-stage consolidation pattern with a 41.60 entry.

Among exchange traded funds, the Innovator IBD 50 ETF (FFTY), which tracks the overall performance of the IBD 50 list of top growth stocks, edged up slightly.

IBD's Stocks on the Move featured two notable winners. Computer gear maker Inphi (IPHI) jumped 4.6% as it continues a powerful earnings recovery following a slump in 2018. According to the IBD database, analysts expect 2019 EPS to rise 85%, followed by a 31% gain next year.

Insurer Palomar Holdings (PLMR), another stock market champ with a 99 Composite Rating and a No. 1 ranking in its industry group, surged 2%. Palomar stock broke out of an IPO base in May, and hasn't paused for a breather. It's now up 163% from its breakout in just eight months.

Trade the IBD 50 in one click via Innovator IBD 50 (FFTY), an ETF managed by Innovator Capital. Please follow Jones on Twitter at @IBD_TJones for more on growth stocks, financial markets and the economy.

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