Dow Jones backs off as China Evergrande misses key interest payment, Bitcoin plunges

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The Dow Jones Industrial Average briefly fell 115 points on Friday as China Evergrande missed a key interest payment. Bitcoin has fallen on China’s crackdown. Apple and Tesla shares took a break after their recent rebounds in early morning trading. Nike (NKE) has plunged after missing sales estimates.

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Among the leaders of the Dow Jones, Apple (AAPL) lost 0.5% on Friday, while Microsoft (MSFT) fell 0.2% on the stock market today. Salesforce (CRM) is in the buy range after Thursday’s sharp breakout.

Tesla (TSLA) fell nearly 1% on Friday, in line with a three-day winning streak. The stock is just above its last buy point. Coinbase (COIN) and Roku (ROKU) slipped after the market opened.

Some of the top titles to buy and watch, Chipotle Mexican Grill (CMG), Deckers Outdoor (DECK) and Snap (SNAP) are in or near new shopping areas.

Deckers, Microsoft and Tesla were named top stocks by Investor’s Business Daily. Chipotle was featured in this week’s Stocks Near A Buy Zone column. Snap is an IBD SwingTrader share and is listed among the IBD shares of the day on Wednesday.

Dow Jones Today: China Evergrande

After the market opened on Friday, the Dow Jones Industrial Average reversed up 0.2%, while the S&P 500 rose 0.1%. The tech-heavy Nasdaq composite fell 0.4% after cutting losses.

Evergrande missed a Thursday deadline to pay an $ 83.5 million coupon on its US dollar bonds without notifying bondholders. Despite the failure to meet the payment deadline, the company has a 30-day grace period before bondholders can report a default. The Wall Street Journal reported Thursday that China is asking local governments to prepare for the potential default of real estate developer China Evergrande Group.

Among exchange-traded funds, Innovator IBD 50 (FFTY) fell 0.65% on Friday. The Nasdaq 100 tracker Invesco QQQ Trust (QQQ) lost 0.5%. And the SPDR S&P 500 ETF (SPY) fell 0.3%.

The stock market regains its key benchmark

The Nasdaq and S&P 500 definitely returned to their 50-day lines on Thursday, while the Dow Jones Industrial Average posted two straight days of solid gains. The blue chip index remains below its 50 day line.

The Big Picture on Thursday commented, “The IBD 50 has given a first sign that the stock market decline may be brief. The next two days. On Thursday, the IBD 50’s outperformance was even brighter, as the index climbed 1.5% and approached a new high. “

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Dow Jones Stocks to Buy and Watch: Salesforce

Dow Jones leader Salesforce traded in the 5% buy range beyond a cup with the handle’s buy point of 275.32 after Thursday’s breakout move. The buy area rises to 289.09. Stocks rose 1% in morning trading.

Until September 22, Salesforce is the # 7 industrial stocks in the Dow Jones this year. Since the start of the year, CRM stock has climbed 24.9%. The number one player is Goldman Sachs (GS) with a 48.6% lead through Thursday’s close.

Dow Jones Profits: Nike

Retailer Dow Jones Nike plots a flat base with a buy point of 174.48, according to graphical analysis from IBD MarketSmith. But stocks closed below their 50-day moving average line on Thursday, even after a three-day winning streak.

Nike’s earnings report was mixed on Thursday night. Nike profits were up 22% from a year earlier to $ 1.16 per share. Sales increased 16% to $ 12.2 billion. Stocks plunged more than 6% on Friday.

Stock market profits: Costco

After the close on Thursday, Costco (COST) released strong fiscal results for the fourth quarter. Costco’s profits were up 7% from a year earlier to $ 3.90 per adjusted share, above estimates of $ 3.58. Revenue, including membership fees, increased 17% to $ 62.675 billion. This topped estimates by $ 61.4 billion. Comparable store sales increased 15.5%, above FactSet estimates for a gain of 12.4%.

Costco stock returned to its 10-week moving average this week, where it is looking for support. Stocks are about 16% above a buy point of 389.55 in a handle mug. The stock rose about 1% after the opening.

Stocks on the move: Coinbase, Roku

The Coinbase cryptocurrency exchange fell nearly 3% on Friday, as the price of Bitcoin fell 5% in the past 24 hours, according to Coindesk. Bitcoin traded around $ 41,200 on Friday morning. Early Friday, China’s central bank cracked down on cryptocurrencies, claiming all cryptocurrency transactions are illegal. “Financial institutions and non-bank payment institutions cannot offer services to activities and operations related to virtual currencies,” the People’s Bank of China said on its website on Friday.

Roku stumbled more than 2% on Friday morning after Wells Fargo lowered the stock from the overweight to the same weight due to growing competition. Shares closed over 30% of their 52-week high on Thursday.

Stocks to buy and watch: Chipotle, Deckers, Snap

Friday’s IBD stock Chipotle Mexican Grill rebounds from its 50-day moving average. Shares were up 0.1% on Friday. The burrito chain traded closely after surging after profits on July 21. Look for continued support around its 10 week line which would be bullish for the stock’s outlook during the current market weakness. Positively, the action’s line of relative strength is reaching new heights.

According to IBD Stock Checkup, CMG stock enjoys a Perfect IBD Composite Rating of 99. The rating measures a mix of fundamental and technical characteristics.

IBD SwingTrader Snap stock is trading just below the buy point of a flat base of 80.95 after three straight days of solid gains. Shares rose about 0.5% on Friday.

The IBD Leaderboard stock Deckers Outdoor is trying to break above an entry of 444.58 in a flat basis, according to IBD MarketSmith. Shares lost nearly 5% on Friday, triggering the 7% to 8% cut-off rule on entry. According to the rankings commentary, the largest retail stock is below a mini-trendline entry near 433 which provided an early buy point. Its relative strength line is also near new highs.

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Tesla shares

Tesla stock fell nearly 1% on Friday, in line with a three-day winning streak. Stocks remain in the buy range above the last buy point of the stock at 730. Stocks are also above their aggressive buy point of 700.10 at the deepest of a correction . Meanwhile, a wide and deep base continues to take shape.

On January 25, Tesla stock hit a record high of 900.40, after climbing 93% from a buy point of 466 in a mug with handle model.

Dow Jones Executives: Apple, Microsoft

Among the major stocks in the Dow Jones, Apple fell 0.5% on Friday, aiming to give up most of Thursday’s 0.7% gain. Despite a three-day winning streak, the title is still below the 50-day line. On Monday, Apple stock hit its lowest level since early July.

Software giant Microsoft fell 0.2% on Friday as the stock continues to rebound from the 50-day line. On Monday, stocks briefly traded below their 50-day line for the first time since a June 21 break above a buy point of 263.29 before closing just above.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.

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