The Dow Jones Industrial Average fell even as component Apple (AAPL) unveiled products including a VR headset and its new iOS 17 operating system for iPhones. Cathie Wood stock Schrodinger (SDGR) soared a session after she sold shares. Finally, Leaderboard stock Palo Alto Networks (PANW) was a top performer.
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There was some bullish action despite a lack of breakouts. DexCom (DXCM) and Kinsale Capital (KNSL) are nearing entries, while Fortinet (FTNT) reclaimed a buy point.
The 10-year Treasury bond yield held steady 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 U.S. services index fell to 50.3 in May from 51.9 in April. This was lower than views for a decline to 51.8, according to a Bloomberg survey.
Nasdaq Reverses As Small Caps Tumble
The Nasdaq fared better than the other major indexes, but still lost 0.1% after reversing lower. Zscaler (ZS) impressed here with a 3.8% gain.
The benchmark S&P 500 finished the day 0.2% lower. Epam Systems (EPAM) lagged with a drop of 21.7% after it cut its profit and revenue outlook.
The S&P 500 sectors finished mixed with a slightly negative skew. Utilities and communication services were the strongest areas. Energy and industrials lagged the most.
Small caps lagged badly, with the Russell 2000 plunging 1.2%. Growth stocks impressed though, with the Innovator IBD 50 ETF (FFTY) rising 0.9%.
Volume fell on both exchanges vs. the prior session, early data showed.
Dow Jones Today: Apple Reverses Despite Vision Pro Reveal
The Dow Jones Industrial Average was slipping lower heading into the close. It fell almost 200 points, down 0.6%.
Apple reversed lower after it unveiled a slew of products at the Worldwide Developers Conference, which featured a keynote presentation led by CEO Tim Cook.
Reveals included the new iOS 17 for the iPhone and new Mac computers, including a 15-inch MacBook Air notebook computer.
The firm also showed off its long-awaited mixed-reality headset at the conference. The Vision Pro does many of the same things as an iPhone, such as browsing the web and offering FaceTime. It also has a feature that allows it to become a Mac monitor. It will retail for a pricey $3,499.
Apple stock hit a record high earlier in the session before backing off, closing down 0.8%.
Amgen (AMGN) was the top stock on the Dow Jones today, as it rose 1.7%. Chip giant Intel (INTC) lagged once again, falling 4.6%.
SDGR Stock Pops After Cathie Wood Sale
Timing can be everything in the stock market. And this was the case for Ark Invest chief Cathie Wood after her firm sold a stock that popped higher Monday.
Her ARK Genomic Revolution ETF (ARKG) sold just shy of 15,000 shares of Schrodinger stock on Friday. She unloaded just over 112,000 shares in total last week.
While this may have been prudent portfolio management, it also meant ARKG missed out on Monday’s 7% jump for Schrodinger.
Even with the recent sales, SDGR remains a major part of the ARK Genomic Revolution ETF portfolio, coming in at 6.2% of the total.
Schrodinger has a mediocre IBD Composite Rating of 67, but is well extended from its major moving averages. It is up 110% so far in 2023.
Leaderboard Stock PANW Jumps On S&P 500 Spot
Palo Alto Networks was having a solid session. It ended with a meaty 4.4% gain on the news it is to be included on the S&P 500.
PANW stock is now extended past a 203.44 proper buy point. The relative strength line is hitting fresh highs, which is encouraging. Last month the stock popped after it turned in a strong earnings report. Large customer growth for cloud-based services was a bright spot
Palo Alto Networks is taking the place of Dish Network (DISH). Dish fell almost 3% in above-average volume. PANW stock is currently a member of the prestigious IBD Leaderboard list of top stocks.
Market Holds Bulk Of Recent Gains; 5 Stocks In Buy Areas
Outside Dow Jones: These 3 Stocks Look Bullish
DexCom is moving closer to a flat base buy point above 126.44, according to MarketSmith analysis. Shares cleared an early entry late last week.
DXCM is in the top 5% of stocks in terms of price performance over the last 12 months. The stock is up almost 9% so far in 2023.
DexCom makes continuous glucose monitoring systems for use by patients with diabetes.
Kinsale Capital is also closing in on a flat-base entry, this one just past 345.75. The relative strength line is bending higher.
The insurance stock is in the top 9% of stocks in terms of price performance over the past 12 months. It also has a perfect EPS Rating of 99.
Fortinet is back in a buy zone after reclaiming a 69.07 entry in a flat base. It is actionable as high as 72.52.
The cybersecurity stock has a perfect IBD Composite Rating of 99. Its bullish action won it the honor of being Monday’s IBD Stock Of The Day.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more analysis of growth stocks.
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