Dow Jones rally with China ready for Evergrande collapse; Microsoft and Nvidia lead shares in buying zone
The Dow Jones Industrial Average closed higher again as US stocks rose, even as China prepared for Evergrande’s demise. Microsoft (MSFT), Alphabet (GOOGL) and Nvidia (NVDA) offered rebound items. Salesforce.com (CRM) was the best blue chip. meme stock blackberry (BB) vaulted on revenue.
China Prepares for Evergrande Storm
US stocks continued to shrug off Monday’s slump over the imminent demise of China Evergrande Group, a real estate investment company.
The communist country is bracing for the impact, with the People’s Bank of China pumping another $17 billion into its banking system after injecting $13 billion into it earlier this week.
According to analysts at Wells Fargo, no major US bank has more than 1.5% of their assets tied to Chinese cross-border transactions, reducing contagion risk.
Chinese officials have been ordered to “prepare for the potential storm”. according to the WSJ. The local government has the task of preventing unrest and helping to absorb the economic consequences.
Market rally soars higher; 17 Leaders Flash Buy Signals
Nasdaq wins as growth stocks rise
The Nasdaq posted the lowest gains of the major indices, but still rose 1%. Playing Hydrocarbon APA Corp. (WHAT), Apache’s parent company, was one of the top-performing companies, up more than 7%.
The S&P 500 outperformed, rising 1.2% and closing just above the 50-day moving average. Marriott International (MAR) was the biggest winner, up just under 4%.
Overview US stock market today
|Table of contents||Symbol||Price||Profit loss||% Change|
|Russell 2000||(AND SO FORTH.)||224.81||+3.91||+1.77|
Last Update: 4:00 PM ET 9/23/2021
The S&P sectors mainly made progress, with only utilities and real estate falling lower. Energy again performed strongly, while financials also skyrocketed.
Small caps outperformed the major indices, helped by strong financials. The Russell 2000 finished with a gain of 1.8%.
But growth stocks outperformed, with the Innovator IBD 50 ETF (FFTY) increases by more than 2%.
Dow Jones Today: Microsoft Stocks in Buying Zone
The Dow Jones Industrial Average rose just under 500 points as it outperformed the major indices. It closed 1.5% higher and is approaching the 50-day moving average.
Microsoft stock is now offering a new entry as it bounces off the 10-week line. It offers an input of 295.68 and is executable up to 325.25.
Institutional investors are big proponents of Microsoft stock. A total of 40% of his stock is held by funds. It shows off eight consecutive quarters of increasing fund holdings.
But it was Salesforce.com that made the biggest headway on the Dow Jones today. Software stock posted a gain of more than 7%.
CRM stock got a big boost after management raised its full-year revenue forecast for 2022 to between $26.25 billion and $26.35 billion.
Nvidia Stocks, GOOGL Flash Buying Signals
Chip stock Nvidia is usable again as it makes a nice rebound from its 10-week moving average.
It offers an entry of 212.54 and is on sale up to 233.79.
The bullish move increased exposure to the stock in the prestigious IBD Leaderboard list of leading growth stocks.
Google Mother Alphabet, which is also a member of the Leaderboard, offers an entry of 2,778.95 as it bounces off its 10-week line.
GOOGL shares can be bought up to 3,056.85. The stock leads the Internet-Content Group, which is currently performing very strongly. This is reflected in its perfect group RS Rating of A+.
Alphabet’s performance since the beginning of the year has been very strong, with an increase of more than 60%.
Meme Stock BlackBerry Vaults higher
Meme stock BlackBerry shot above its 50-day and 200-day moving averages after beating Wall Street expectations.
The company lost 6 cents a share, better than analysts’ expectations for a loss of 7 cents a share. Revenue of $175 million also exceeded estimates.
Shares closed more than 11%, building on strong premarket action.
Nevertheless, it has a poor EPS rating of 43 and is well short of its late January high of 28.77.
These 3 shares pass buy points
Pure Storage is in a buy zone after clearing a cup with handle. The ideal buying point here is 27.05.
The relative strength line has been making strong progress lately, while Pure Storage has solid stock market and earnings performance.
Natural gas stock Oneok closed just below its buy point after breaking a consolidation entry of 57.65.
It has good all-round performance, but it is Accumulation/Distribution Classification of D+, on a scale from A+ to E, is less than ideal.
Devon Energy managed to hit a consolidation buy point of 32.09 and remains in the 5% chasing zone.
The stock performance over the past 12 months has been very strong, with an RS rating of 96. The stock is up nearly 110% so far in 2021.
Follow Michael Larkin on Twitter at: @IBD_MLarkin for more information on growth stocks and analysis.
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