After dropping early on more China trade news, the current stock market reversed higher in trading before reversing again, to the downside, at the close. Big gainers included IBD’s Stock of the Day Costco (COST), Dow Jones Industrial Average index mainstay Apple (AAPL), and communications software creator RingCentral (RNG). Both Costco stock and Apple stock are now in buy zones.
Indexes showed the indecisiveness and jitter of the major markets as U.S.-China trade talks are set to begin later this week, and concern mounts over continued upheaval in the topsy-turvy repo market, which has prompted hundreds of billions of dollars in Fed support in recent weeks.
With less than an hour to go in the Monday regular session, the Nasdaq and the Dow Jones traded flat, while the S&P 500 fell less than 0.2%. The small-cap Russell 2000 Index was near break-even.
But as the close neared, the declines gathered steam, with the Nasdaq dropping 0.3%, the Dow falling 0.4%, the S&P 500 off 0.5% but Russell 2000 off just 0.1% for the day.
Volume eased on the major exchanges vs. the same time Friday. NYSE volume fell 5% and Nasdaq turnover dropped 3%.
Dow stock Apple rose 0.02% after Wedbush reissued an outperform rating for the iPhone maker’s stock. Apple gapped up on Friday, putting it above a 221.47 buy point. Apple’s stock has risen on solid sales of its iPhone 11 and the release of its long-awaited MacOS Catalina software upgrade.
Nasdaq’s Costco moved strongly out of a flat base on Sept. 6, but since then has moved sideways mostly in the buy zone. In recent days, it has tested and rebounded off its 50-day moving average. It rose 0.9% on Monday.
IBD 50 Gainers
The IBD 50 List of top growth stocks featured a number of software stocks making moves.
Cloud-based workflow software producer ServiceNow (NOW) tacked on 0.6%, moving above its 50-day moving average as it consolidates following a major move. ServiceNow stock broke out of a flat base in late June, but topped a month later and has since corrected and moved sideways.
Also rising strongly were cloud-based work management software powerhouse Upland Software (UPLD), up 3.4%, and cloud-based finance and human resources software maker Workday (WDAY), which gained 2.3%.
Among IBD’s Stocks on the Move list, Home furnishings retailer RH (RH), formerly known as Restoration Hardware, rose 3.1%. RH was added to IBD’s Leaders List on Leaderboard based on its recent solid market performance. A look at IBD’s Stock Checkup reveals RH stock has a best-possible Composite Rating, a 97 EPS Rating, and a 98 RS Rating. It is also No. 1 in its industry group. It emerged from a cup base and is now extended above its 157.81 buy point.
Stock Market: Big Movers
Also on the rise, Match Group (MTCH) added 4.9% on sharply higher volume. The lonely hearts social media site’s main property is the racy Tinder app. It now operates in more than 40 countries.
On Aug. 26, Match shares surged 24% in one day on heavy volume, just weeks after exiting a flat base. That big jump extended Match stock and pushed it into the take-profits zone.
Since then, however, Match stock has drifted mostly downward as it faces stiff new competition and a federal investigation of its business. It’s now back in the buy zone, but remains below its 50-day moving average.
Also among Monday’s big movers was Synnex (SNX), which gets a 97 Composite Rating from IBD, is ranked No. 1 in its industry group and rose 1.3%. Synnex broke out of a lengthy double-bottom base on Sept. 26, surging 17.6% in one day and extending above the 5% buy zone over its 103.69 buy point. It moved to a new all-time high on Monday.
Meanwhile, among exchange traded funds, the Innovator IBD 50 ETF edged 0.1% lower. The Innovator IBD 50 is indexed to the IBD 50 list of top growth stocks.
Author: Terry Jones
Source: Investors: Stock Market Dips Late In Up-Down Action; These 2 Big Names Hit Buy Zones