October 4, 2023

Dow Jones falls even as Apple unveils Vision Pro; This Cathie Wood stock goes up after she sells it

The Dow Jones Industrial Average even fell as a component Apple (AAPL) unveiled products including a VR headset and the new iOS 17 operating system for iPhones. Cathie Wood stock Schrodinger (SDGR) rose one session after selling shares. Finally, Leaderboard Stock Palo Alto Networks (PANW) was a winner.




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There was some bullish action despite a lack of breakouts. DexCom (DXCM) and Kinsale capital (KNSL) registrations are approaching, while Fortinet (FTNT) has reclaimed a point of sale.

The yield on 10-year government bonds remained stable 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 from 51.9 in April to 50.3 in May. This was below the number of views for a drop to 51.8, according to a survey by Bloomberg.

Nasdaq reverses as small caps tumble

The Nasdaq outperformed the other major indices, but still lost 0.1% after a reversal. Zscaler (ZS) impressed here with a gain of 3.8%.

The benchmark S&P 500 ended the day down 0.2%. Epam Systems (EPAM) was left with a 21.7% decline after lowering its profit and revenue outlook.

S&P 500 sectors finished mixed with a slightly negative skew. Utilities and communications services were the strongest areas. Energy and industry lagged behind the most.

Small caps underperformed sharply, with the Russell 2000 down 1.2%. Growth stocks impressed, however, with the Innovator IBD 50 ETF (FFTY) up 0.9%.

Volume was down on both exchanges from the previous session, early data showed.

Dow Jones Today: Apple Returns Despite Vision Pro Reveal

The Dow Jones Industrial Average slid lower towards the close. It fell nearly 200 points, down 0.6%.

Apple slipped lower after unveiling a slew of products at the Worldwide Developers Conference, which hosted a keynote presentation led by CEO Tim Cook.

Reveals include the new iOS 17 for the iPhone and new Mac computers, including a 15-inch MacBook Air notebook computer.

The company 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 retails for a pricey $3,499.

Apple shares hit an all-time high earlier in the session before pulling back and falling 0.8%.

Amgen (AMGN) was the top stock on the Dow Jones today, up 1.7%. Chip giant Intel (INTC) again lagged with a decline of 4.6%.

SDGR stock resurfaces 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 company sold a stock that went higher on Monday.

Her ARK Genomic Revolution ETF (ARKG) sold nearly 15,000 shares of Schrödinger on Friday. In total, she sold just over 112,000 shares last week.

While this may have been prudent portfolio management, it also meant that ARKG missed Monday’s 7% gain for Schrödinger.

Even with the recent sales, SDGR remains an important part of the ARK Genomic Revolution ETF portfolio, accounting for 6.2% of the total.

Schrödinger has a mediocre IBD Composite Rating of 67, but is a long way off his major moving averages. It is up 110% so far in 2023.

Leaderboard Stock PANW jumps on S&P 500 spot

Palo Alto Networks had a solid session. It finished with a solid 4.4% gain on news that it will be included in the S&P 500.

PANW stock has now expanded past a 203.44 good buy point. The relative strength line is reaching new highs, which is encouraging. Last month, the stock boomed after delivering a strong earnings report. Large customer growth for cloud-based services was a bright spot

Palo Alto Networks takes the place of dish network (DISH). Dish was down nearly 3% in above-average volume. PANW stocks are currently a member of the prestigious IBD Leaderboard list of top stocks.


Market owns most of recent gains; 5 shares in buying areas


Beyond the Dow Jones: These 3 stocks look bullish

According to MarketSmith’s analysis, DexCom is moving closer to a flat base buy point above 126.44. Shares cleared an early entry late last week.

DXCM ranks in the top 5% of stocks in terms of price performance over the past 12 months. The stock is up nearly 9% so far through 2023.

DexCom makes continuous glucose monitoring systems for use by patients with diabetes.

Kinsale Capital is also approaching a flat-base entry, this one just past 345.75. The relative strength line bends higher.

The insurance stock is in the top 9% of stocks in terms of price development over the past 12 months. It also has a perfect EPS rating of 99.

Fortinet is back in a buy zone after winning back a 69.07 entry in a flat base. It is executable 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.

Follow Michael Larkin on Twitter at @IBD_MLarkin for more analysis of growth stocks.

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