{"id":19102,"date":"2019-10-02T09:43:46","date_gmt":"2019-10-02T08:43:46","guid":{"rendered":"https:\/\/traders-paradise.com\/?p=19102"},"modified":"2020-07-07T14:53:35","modified_gmt":"2020-07-07T13:53:35","slug":"dow-jones-dropped-more-than-300-points","status":"publish","type":"post","link":"https:\/\/traders-paradise.com\/magazine\/2019\/10\/dow-jones-dropped-more-than-300-points\/","title":{"rendered":"Dow Jones Dropped More Than 300 Points, But Two Stocks Hold Gains"},"content":{"rendered":"

3 min read<\/em><\/p>\n

\"Dow<\/p>\n

The Dow Jones dropped more than 300 points after frustrating economic data stopped an early rally in the stock market on Tuesday. The stock market rally experienced a strong reversal. The rally appeared under more pressure as worsening U.S. manufacturing index activity renewed recession fears. JPMorgan Chase (JPM) dropped below a buy point, as Treasury yields declined.\u00a0<\/span><\/p>\n

The Institute for Supply Management’s<\/a> manufacturing index declined to its lowest level previously seen in June 2009.<\/span><\/p>\n

The Dow Jones Industrial Average (DJINDICES:^DJI) and the S&P 500 (SNPINDEX:^GSPC) both lost more than 1%. All sectors declined, but industrial stocks were damaged the most.
\n<\/span>But some of the Dow Jones Index stocks made the largest gains, Apple (AAPL) and Visa (V). Apple stocks rose for 0,5% and Visa increased by 1,4%. <\/span>Visa has been consolidating below the 50-day line the past three weeks after pulling back from a 184.17 buy point of a flat base.<\/span><\/p>\n

Apple scored a new high early and gained as the market reversed. It regained a 221.47 buy point of a flat base and continues in buy range from the entry. The market uptrend<\/a> is under pressure, so you must be aware that all trading is riskier now.<\/span><\/p>\n

According to investors.com<\/a> “investment banks, machinery, and telecom stocks led the downside among IBD’s 197 industry groups.” On the other side, long-term medical care, gold miners and food, and beverages were between the several groups resisting the decline.
\n<\/span>Hexcel (HXL) fell 6% to a two-month low, retailer Boot Barn Holdings (BOOT) sank 5% in below-average volume.
\n<\/span>Israeli medical technology company InMode (INMD) and Visa were some of the few IBD 50 stock winners with increases of 1% or more.<\/span><\/p>\n

The point is that just one strong market session could upgrade the whole picture, but if another large sell-off occurs could freeze the stock market rally.\u00a0<\/span><\/p>\n

China trade<\/a> discussions will continue next week, but there are possible risks for the weak stock market rally.\u00a0 Investors have been hoping for a China trade suspension<\/a> of hostilities. That was the reason why the market wasn’t down on Monday.\u00a0<\/span><\/p>\n

The added uncertainty to the markets is the Trump impeachment inquiry. For now, it doesn’t make to much damage to the US stock market but investors may become more nervous because of all of that.\u00a0<\/span><\/p>\n

\n
\n

Table of Contents<\/p>\nToggle<\/span><\/path><\/svg><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n