Dow Jones Marks 7-Month Closing Low; Apple Struggles
Dow Jones industrial product had a bad week with sharp losses on the stock market today and lost 2% to put its worst place since 3 May. At 24,100, Dow also dropped almost 1.2% a week after a 4.5% shellacking last week.
More evidence of slowing down growth in retail and industrial production in China last year and fresh signs of a softening production image in Europe demanded wide-scale sales across Wall Street. Fewer than a dozen of 197 IBD industry groups posted a win on Friday.
Apple (AAPL) helped lead the broad decline, dropping more than 5 points, or 3% to 1[ads1]65.48. IPhone and digital services titanium now handle almost 30% below a 233.47 peak. Analysts continue to shave their reviews for Apple on concerns about iPhone sales.
It is not uncommon for stock market leaders to form a base, such as the cup of handles, throwing 30% to 33% of the market value in the process. Given that Apple has been in proof mode for more than 10 weeks, it is guaranteed that Dow Jones's industrial component needs months to recover and properly form the right side of a brand new base.
S & P 500 closed 1.9% lower while Sellers punched down the Nasdaq composite by more than 2.2%. Russell 2000 fell 1.5%.
The volume came into contact higher on Thursday at Nasdaq, according to early data. NYSE sales were about flat. Current outlook remains under strong sales pressure. Read IBD's The Big Picture column for a daily review of the prospects. Dow Jones Leader Gets Whacked
Johnson & Johnson (JNJ) caused the disadvantage among the 30 components of the Dow Jones industry. The medical giant, who, according to a Reuters report, had known for decades that the baby powder product contained asbestos, doubled 15 points or 10% to 132.80 in volume, which jumped seven times its 50-day average.
J & J, with 2.68 billion outstanding shares, saw $ 40 billion of stock market value being solved in a single session. Some institutions entered the area in the stock near their long-term 200-day moving average. IBD draws the 200-day line, which plots the average closing price of the 200 last trading units, in black on all daily stock charts on Investors.com.
A Good Breakout Spoiled
7. November the stock broke out of a large cup with handles of 143.23 and rallied the message. Now the shares have begun the golden investment rule by falling 7% -8% below the right breakout point. IBD surveys have found that large stocks usually do not fall more than 7% below a correct purchase point after breaking out.
Market Leaders Get Hit Hard
Costco Wholesale (COST) dropped almost 9% to 207.06 in heavy sales and slashed through its 200-day moving average for the first time in more than a year. Read more about Costco and the state of the basic construction work in these stocks near a shopping zone column.
Adobe (ADBE) also sold hard despite posting robust quarterly results late on Thursday. Shares dropped more than 7% to 230 and slid well below 50 and 200 days moving average in almost three times their average volume. The sector leader remains in basic building mode.
Mastercard (MA), IBD Stock Of The Day feature on Friday fell 1.8% and pushed back during the ever-increasing 200-day moving average. At 195.33, the financial payoff giant is trading 13% below the 225.35 peak in a new base.
In other financial markets
crude oil futures fell hard. West Texas Intermediate futures futures fell more than 2.7% to $ 51.16 a barrel despite some positive reports about the US economy. Retail sales increased 0.2% in November compared to the previous month, and represented 0.1% profit expected by Econoday. Excluding car and gasoline, retail sales managed 0.4%, lacking the consensus forecast of 0.5%.
Langdate US Treasury bonds fell in price for the week. The benchmark 10-year government bond showed that the return climbed 4 basis points to 2.89% on Friday one week ago.
The federal reserve is still looking forward to raising short-term interest rates by one quarter point for the fourth time this year after a two-day meeting ending on Wednesday next week.
The spread between 3-month government bonds and 10-year bonds is currently 58 basis points, still weak from 122 basis points at the beginning of the year. 19659005] Please follow Chung on Twitter at @IBD_DChung for more about growth stocks, map analysis and financial markets.
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