The Dow Jones Industrial Average fell even as its component Apple (AAPL) unveiled products including a VR headset and its new iOS 17 operating system for iPhone. Cathie Wood’s Lacrosse Schrödinger (SDGR) climbed one session after selling stocks. Finally, the ranking stock Palo Alto Networks (PANW) was one of the top performers.
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There was bullish action despite no breakouts. DexCom (DXCM) and Capital of Kinsale (KNSL) are approaching entrances, while Fortinet (FTNT) recovered a buy point.
The 10-year Treasury bond yield was flat at 3.69% while the two-year yield fell 3 basis points to 4.47%. The yield curve remains inverted. The Institute for Supply Management’s US services index fell to 50.3 in May from 51.9 in April. That was below views for a drop to 51.8, according to a Bloomberg survey.
Nasdaq reverses as small caps fall
The Nasdaq fared better than other major indices, but still lost 0.1% after falling. Z-scale (ZS) impresses here with a gain of 3.8%.
The benchmark S&P 500 index ended the day down 0.2%. Epam systems (EPAM) lagged with a 21.7% drop after cutting its profit and revenue outlook.
S&P 500 sectors ended mixed with a slightly negative bias. Utilities and communication services were the strongest sectors. Energy and industries are lagging the most.
Small caps lagged a lot, with the Russell 2000 plunging 1.2%. Growth stocks impressed, however, with the Innovator IBD 50 (FFTY) ETF up 0.9%.
Volume fell on both exchanges from the previous session, according to early data.
Dow Jones Today: Apple Backs Down Despite Vision Pro Reveal
The Dow Jones Industrial Average was sliding lower towards the close. It lost nearly 200 points, down 0.6%.
Apple backed off after unveiling a slew of products at the Worldwide Developers Conference, which featured a keynote presentation led by CEO Tim Cook.
The reveals included the new iOS 17 for the iPhone and new Mac computers, including a 15-inch MacBook Air laptop.
The company also showed off its long-awaited mixed reality headset at the conference. The Vision Pro does a lot of the same things an iPhone does, like browsing the web and offering FaceTime. It also has a feature that allows it to become a Mac monitor. It will cost $3,499.
Apple stock hit a record high earlier in the session before falling back, closing down 0.8%.
Amgen (AMGN) was the top Dow Jones stock today, rising 1.7%. giant flea Intel (INTC) lagged again, falling 4.6%.
SDGR stock breaks out after Cathie Wood sale
Timing can be everything in the stock market. And that was the case for Cathie Wood, head of Ark Invest, after her company sold a stock that rose on Monday.
Its ETF ARK Genomic Revolution (ARKG) sold just under 15,000 shares of Schrodinger on Friday. It unloaded just over 112,000 shares in total last week.
While that may have been prudent portfolio management, it also meant ARKG missed Monday’s 7% jump for Schrödinger.
Even with recent selloffs, SDGR remains an important part of the ARK Genomic Revolution ETF portfolio, accounting for 6.2% of the total.
Schrodinger has a mediocre IBD composite rating of 67, but is well off its major moving averages. It’s up 110% so far in 2023.
PANW ranking action jumps to S&P 500 spot
Palo Alto Networks had a solid session. It ended with a substantial 4.4% gain on news that it is to be included in the S&P 500.
PANW stock is now extended beyond a suitable buy point of 203.44. The relative strength line is reaching new highs, which is encouraging. Last month, the stock surged after posting a strong earnings report. Strong customer growth for cloud-based services was a positive
Palo Alto Networks takes the place of Dish Network (FLAT). Dish fell nearly 3% in above-average volume. PANW stock is currently a member of the prestigious IBD Leaderboard list of top stocks.
The market holds most of the recent gains; 5 stocks in buy zones
Outside of Dow Jones: These 3 Stocks Look Bullish
DexCom is approaching a flat base buy point above 126.44, according to MarketSmith analysis. Stocks cleared an early entry late last week.
DXCM is in the top 5% of stocks by price performance over the past 12 months. The stock is up almost 9% so far in 2023.
DexCom manufactures continuous blood glucose monitoring systems for diabetic patients.
Kinsale Capital is also approaching a flat-based entry, this one just after 345.75. The relative force line bends higher.
The insurance stock is in the top 9% of stocks by price performance over the past 12 months. It also has a perfect EPS rating of 99.
Fortinet is back in a buy zone after recovering an entry of 69.07 in a flat base. It is workable up to 72.52.
The cybersecurity stock has a perfect IBD composite rating of 99. Its bullish action earned it the honor of being Monday’s IBD stock of the day.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more growth stock analysis.
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