Dow Jones Rallies As Apple Reverses Higher; Tesla Sinks On Autopilot Probe; China Stocks Dive

Table of Contents Nasdaq Slips As Growth Stocks LagU.S. Stock Market Today OverviewLast Update: 2:54

The Dow Jones Industrial Average fought back into positive territory after stocks had earlier been punished amid geopolitical turmoil. Apple (AAPL) and Microsoft (MSFT) managed to rally off lows, though UnitedHealth (UNH) was the top blue chip. Tesla (TSLA) was sinking on the news its Autopilot system is the subject of a new safety probe.

China stocks were struggling as data showed the communist state’s economy is slowing down. The likes of Alibaba (BABA), Tencent (TCEHY) and JD.com (JD) were giving up ground.




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A couple of stocks managed to attempt breakouts despite the challenging action. Capital Bancorp (CBNK) and SPS Commerce (SPSC) both passed buy points.

The fall of Afghanistan to the Taliban following the withdrawal of U.S. troops is adding to fears surrounding global growth. President Biden, who made the final decision to pull soldiers out of the Middle Eastern country, is due to speak about the situation from the White House this afternoon.

Nasdaq Slips As Growth Stocks Lag

The Nasdaq was faring worst out of the three major indexes, though it was off lows. It remained down about 0.3%. NetEase (NTES) was the worst performer, falling more than 5%. Dexcom (DXCM) meanwhile fared best, rising almost 3%.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 35563.40 +48.02 +0.14
S&P 500 (0S&P5) 4471.89 +3.89 +0.09
Nasdaq (0NDQC ) 14773.60 -49.30 -0.33
Russell 2000 (IWM) 219.74 -1.39 -0.63
IBD 50 (FFTY) 45.35 -0.45 -0.98
Last Update: 2:54 PM ET 8/16/2021

The S&P 500 managed to battle its way back into positive territory, turning in a slender gain of about 0.1%. Advance Auto Parts (AAP) fared well here, rising about 2.5%. Tesla stock was the worst laggard.

The S&P sectors were mixed, with utilities and health leading. Materials and energy were the worst laggards. The latter point is underlined by the fact Enphase Energy (ENPH) was axed from the prestigious Leaderboard list of leading growth stocks Monday.

Small caps were bitten by the bears, with the Russell 2000 falling 0.6%.

However it was growth stocks that suffered the worst mauling, with the Innovator IBD 50 ETF (FFTY) dipping about 1%.

Dow Jones Fights As Apple Stock, Microsoft Rally

The Dow Jones Industrial Average showed strength by fighting its way out of the red. The index was up more than 0.1% after paring early losses.

Leaderboard stocks Apple and Microsoft both managed to rally off lows.

Apple forced its way back above a 148 buy point as it turned an early loss into a gain of 1%.

Microsoft, which is extended past a 263.29 entry, posted a milder gain of around 0.2% after rallying. But it was UnitedHealth that was making the best progress of all, turning in a gain of almost 2%.

Boeing (BA) was the biggest laggard, falling more than 2%.

Tesla Stock Sinks On Autopilot Safety Probe

Tesla stock sunk after it emerged Monday the National Highway Safety Administration has opened a formal investigation into its Autopilot system.

The agency claims it has identified 11 crashes since early 2018 where a Tesla vehicle using Autopilot or the Traffic Aware Cruise Control have hit vehicles with flashing lights, flares, an illuminated arrow board or cones warning of hazards.

Tesla pared some losses, but was still down almost 5% as it lost ground on an aggressive buy point of 700.10. Despite this, a large base is continuing to take shape.

It has been a choppy year so far for Tesla stock. It has plunged from the record high of 900.40 it reached in late January. But that came after it spiked around 93% from the previous 466 cup with handle buy point.

China Stocks Dive Amid Slowdown

China stocks were battered lower after new data showed China’s economy slowed more than expected in July. The information was released by China’s National Bureau of Statistics.

Alibaba stock was down around 3%, and it is continuing to trend downward. The stock lost ground on its 50-day moving average.

Alibaba stock has been rolling over since an attempt to break out of a flat base in late October 2020 failed.  The e-commerce play holds a lackluster IBD Composite Rating of 49.

Tencent was also having a bad day, dipping by around 5%. The stock has saw its relative strength line decline sharply for much of 2021. This is a bearish indicator.

JD.com was sitting between the other two China stocks, dipping 4.5%. The stock’s relative strength line has been dipping since late February, and its RS Rating is a dismal 17 out of 99.

These Stocks Pass Buy Points

Capital Bancorp is in a buy zone after breaking out of a cup-with-handle base. The ideal buy point is 23.93, MarketSmith analysis shows.

The stock has been seeing its relative strength line spike in recent weeks following a consolidation dip. This is ideal for its breakouts.

Earnings are a key strength for the bank stock, with its EPS Rating coming in at a near-perfect 98.

SPS Commerce, meanwhile, is in a buy zone after passing a cup-without-handle entry of 118.16.

This stock, which provides supply chain management software to distributors, boasts a good balance of earnings and stock market performance.

Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.

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