Stock Market Reverses Lower As S&P 500 Falls 0.2%; Leading Stocks Outperform
The stock market bounced back from Monday’s sell-off at the open, but indexes soon started weakening and reversed lower after 90 minutes of trading. The IBD 50 outperformed, though.
Indexes pared losses in afternoon trading Monday, and that buying momentum carried into today’s stock trading. But after a half-hour of trading, indexes trimmed their gains.
The Nasdaq composite was up 0.8% but reversed lower to a loss of 0.1%. Invesco QQQ Trust (QQQ) climbed fell 0.3% after being up 0.7%. It remains below the 50-day moving average.
The S&P 500 lost all gains and was off 0.2%. The Dow Jones Industrial Average lost 0.1%. Dow component Johnson & Johnson (JNJ) rose 0.6% after the company reported that a trial showed a booster shot of its Covid-19 vaccine increased protection against symptomatic illness.
U.S. Stock Market Today Overview
Last Update: 10:14 AM ET 9/21/2021
Stock Market Sectors Mixed
Health care, utilities, consumer staples and real estate were the strongest S&P sectors, up 0.3% to 0.6%. Industrial, energy, materials and financial sectors were down 0.3% to 0.9%.
In Asia, the epicenter of Monday’s sell-off, the Hong Kong Hang Seng reversed higher to close up 0.5%. Tokyo’s Nikkei index climbed 2.2%, its best day since June 21. The Shanghai stock market remained closed for a holiday.
The iShares China Big Cap ETF (FXI) climbed 0.7%. Invesco China Technology ETF (CQQQ) rose 0.5%.
European stocks also rebounded. The Stoxx Europe 600 index rose more than 1%. London’s FTSE 100 index traded 1.1% higher, while the German DAX and CAC 40 in Paris were both up 1.4% in afternoon trading.
Leading Stocks Outperform Stock Market
Innovator IBD 50 ETF (FFTY) was up as much as 1% but trimmed the gain to 0.3%. As usual, it was the most volatile stocks in the IBD 50 that accounted for most of the index’s price action.
Upstart (UPST) led with a 6% increase to a new high. InMode (INMD) and Monday.com (MNDY) rose more than 4%.
Penske Automotive Group (PAG) reduced its gain to 0.5% and is back in buy range from the 92.06 buy point of a cup-with-handle base. Penske is one of several auto dealer and auto parts stocks breaking out of bases in the past couple of weeks. Keep in mind, IBD’s market outlook has weakened to “uptrend under pressure.”
But Bill.com (BILL) fell more than 6%, coming down below the 21-day line. The business back-office software firm set a $1 billion stock offering. It also plans to offer $500,000 in convertible debt.
Uber Rallies On Profit Outlook
Uber Technologies (UBER) gapped up 9% in one of the largest stock gains this morning. The stock is still deep in a correction. Uber said it expects an adjusted profit in the current quarter, in what would be the company’s first earnings.
The stock market trains its sights now on the Federal Reserve, which begins a two-day meeting today. A new policy statement will come out Wednesday.
While no one expects a change in interest rates, there’s a growing possibility that the Fed will set a start date for the reduction of asset purchases. Some Fed officials have backed a taper this fall even after the August jobs report disappointed.
U.S. housing starts in August climbed 3.9% to 1.615 million, above forecasts. Building permits rose 6% to 1.728 million.
Housing starts rebounded from a large decline in July. “The level is high, but largely sustainable, economist Joel Naroff of Naroff Economics said in a note. “With permit requests continuing to run well above actual construction, we should see the building pace accelerate over the next few months.”
IBD’s homebuilding industry group was nearly flat. Many bases in the group have fizzled.
Juan Carlos Arancibia is the Markets Editor of IBD and oversees our market coverage. Follow him at @IBD_jarancibia
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