Dow Jones, Nasdaq Close Lower, Post Weekly Losses; Auto Retailers Surge To New Highs

The Dow Jones Industrial Average fell in today’s stock market and closed out this week with a small loss. The Nasdaq also traded lower as the Biden administration has warned of a financial crisis, should Congress fail to raise the debt ceiling.


President Joe Biden has been trying to make a deal to raise the $28.5 trillion federal borrowing limit. The Federal government will close down temporarily if Republicans and Democrats cannot reach an agreement.

Dow Jones In The Stock Market Today

The Nasdaq composite lost 0.9%. The Dow Jones lost 0.5% while the S&P 500 fell 0.9%. The Russell 2000 index closed 0.2% higher, bucking the downtrend. Early data showed higher volume on the NYSE and on the Nasdaq vs. the close on Thursday.

The major indexes traded lower Friday and closed out this week with losses. The S&P sectors were almost all negative, with only health care managing to stay in the green. Technology and materials were the worst performers. Steel stocks were also breaking down, with the VanEck Steel ETF (SLX) losing over 4%.

Growth stocks faded mildly on Friday, after a solid week of gains. The Innovator IBD 50 ETF (FFTY) lost 0.3% but gained almost 2% for the week. The ETF is now back above a 50.06 buy point after gaining support at the 21-day exponential moving average.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 34582.90 -168.42 -0.48
S&P 500 (0S&P5) 4432.70 -41.05 -0.92
Nasdaq (0NDQC ) 15043.97 -137.96 -0.91
Russell 2000 (IWM) 222.37 +0.18 +0.08
IBD 50 (FFTY) 50.58 -0.12 -0.24
Last Update: 4:34 PM ET 9/17/2021

Stocks underperforming in the index included Carvana (CVNA) and SentinelOne (S), which lost over 3% and 4%, respectively.

Inside the Dow Jones, Apple (AAPL) was among the worst performers, falling nearly 1.8%. Shares lost support at the key 50-day moving average, which is a sell signal. The stock was struggling after reports that Apple Card owners were having problems ordering the upcoming iPhone 13.

Meanwhile, Nike (NKE) also traded lower with a drop of roughly 0.7% after a couple straight days of declines. Shares are shaping a potential flat base with a 174.48 buy point but are now 10% below this proper entry. The stock also recently dropped below its key 50-day and 200-day lines in August, a bearish sign.

Nike plans to release its fiscal first-quarter 2022 results on Sept. 23. According to IBD data, the athletic shoe and apparel giant is expected to show year-over-year earnings growth of 18% to $1.12 per share. Sales are seen rising 18%, to $12.46 billion.

Auto Retailers Scoring Breakouts

Two growth stocks in the automotive retailer space broke out Friday and hit new highs: CarMax (KMX) and Group 1 Automotive (GPI). Meanwhile, auto retailer Penske Automotive Group (PAG) traded inside a key buy area after breaking out earlier this week.

The automotive retailer industry group ranks a weak No. 132 out of the 197 industry groups IBD measures. It’s safe to say the group is not a market leader at this time. But today’s action suggests notable strength among auto retailers, which as a group rose 3.4%. Investors may want to keep an eye on these growth stocks as they make their way above buy points.

Penske, which operates 323 retail automotive locations across four continents and nine countries, broke out from a 92.06 cup-with-handle base entry earlier this week. Shares gained nearly 2% on Friday and closed just pennies above the upper edge of the 5% buy area.

Shares of CarMax broke out above a 140.05 cup-based buy point Friday and closed inside the buy area. The retailer is expected to report its financial results for the second quarter before the market opens on Sept. 30.

Group 1 Automotive also broke out Friday, and rose above a consolidation 182.05 buy point. The growth stock gained 2.3% and hit a new high of 183.59.

Meanwhile, industry group leader and IBD 50 stock AutoNation (AN) pared a 6% gain to an increase of roughly 2% Friday. Shares closed higher for the fifth-straight day. The car dealership stock is roughly 1% away from a 125.31 buy point of a cup base.

Follow Rachel Fox on Twitter at @foxonstocks for more Dow Jones and market commentary.


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