Dow Jones Reverses Lower On Government Shutdown Worries: Oil And Gas Stocks Slammed,

The Dow Jones Industrial Average was near session lows along with the other major stock indexes in afternoon trading Friday. Sentiment was negative on growing fears of a government shutdown. Published reports said that a temporary spending bill from House Speaker Kevin McCarthy has little chance of passing.


The Dow Jones was down 0.6% after getting turned away at its 200-day moving average.

Nike (NKE) was a big winner in the Dow Jones today, up around 7% after the company beat on earnings but slightly missed on revenue. There were plenty of positives in the report, though, including better-than-expected gross margin of 44.2% as well as revenue increases in markets like China and the Europe/Middle East/Africa regions.

Walgreens (WBA) was another big winner in the Dow Jones, up around 5%. But WBA stock is still on a lengthy downtrend, marred by an Accumulation/Distribution Rating of E, the worst possible. The rating is hurt by several above-average price declines for WBA since the second half of June.

Outside the Dow Jones

After rising 1.4% intraday, the Nasdaq composite faded to a nearly flat level with about one hour left to go in the session. Today marks the final trading day of September and also the final trading day of the third quarter. That means some late-session volatility should be expected.

Volume was higher on the Nasdaq compared to the same time Thursday, but slightly lower on the NYSE.

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Advancing stocks had a slight edge over decliners on the Nasdaq. Breadth was slightly negative on the NYSE.

Besides NKE and WBA in the Dow Jones, several stocks still showed solid gains.

Security software firm Zscaler (ZS) held up well in the Nasdaq 100, up more than 3%, after joining the Leaders list earlier in the session. The Leaderboard model portfolio is less than 40% invested with the stock market still in a correction.

The S&P 500, up nearly 0.8% at one point, reversed lower and was down 0.3%. A sell-off in oil and gas stocks like SLB (SLB), Valero Energy (VLO) and Baker Hughes (BKR) weighed on the index. All three showed losses of more than 3.5%, with WTI crude oil futures down 1% to just below $91 a barrel.

Inflation data from the August personal income and spending report fueled solid gains early for the major stock indexes. Year over year, the core personal consumption expenditures index rose 3.9%, in line with views but lowest since Sept. 2021. But it’s still well above the Federal Reserve’s inflation target of 2%.

Growth Stocks On The Move

Inside the MarketSmith Growth 250, Duolingo (DUOL) staged a powerful breakout early in the session. But a double-digit percentage gain faded to less than 4%.

Software firm Vertex (VERX), meanwhile, held up well after a nice close off lows Thursday. Shares jumped nearly 3% as the stock trades just above a 230.3 entry.

Inside the IBD 50, software firm Braze (BRZE) along with FTI Aviation (FTAI) continue to trade well.

BRZE is holding support at its 10-week line as it sits just above an alternate entry of 45.72. FTAI is in an alternate buy zone as it tests support at the 10-week line for the first time.

Dow Jones stock Salesforce (CRM), tracked in the enterprise software group along with Braze, gave back an early gain after getting turned away at its 10-day line.

Follow Ken Shreve on Twitter @IBD_KShreve for more stock market analysis and insight.


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