Dow Jones Resilient Despite China Sell-Off; Major Headline Lifts Boeing

The U.S. stock market today was under modest selling pressure near midday Monday, hurt by a sell-off in Chinese stock markets overnight. The Dow Jones Industrial Average today moved off lows, helped by strength in Walgreens stock and Boeing stock. Boeing (BA) shares jumped more than 3% after the company said it expects to resume deliveries of its 737 Max jet in December, with commercial flights starting in January.

Tesla (TSLAWealth Strength IndexAAPL is Extremely Up and trending Up) outperformed in the Nasdaq today, up more than 3%, after Jefferies maintained a buy rating but raised its price target to 400 from 300.

The Dow Jones, S&P 500 and Nasdaq composite showed losses of 0.1% to 0.3%. while the Russell 200 small-cap index gave back 0.4%. Volume on the NYSE and Nasdaq was lower compared to the same Friday.

Dow Jones Today

Walgreens Boots Alliance (WBAWealth Strength IndexAAPL is Extremely Up and trending Up) was by far the best performer in the Dow Jones, up nearly 6%, after Bloomberg reported that KKR has made a formal offer to take the Dow component private.

Cisco Systems (CSCOWealth Strength IndexAAPL is Extremely Up and trending Up) was a drag on the Dow Jones, falling more than 1%, after Piper Jaffray downgraded shares to neutral from overweight and lowered its price target to 51.

Biotech Breakout

Inside the MarketSmith Growth 250, Acadia Pharmaceuticals (ACAD) broke out over a 44.20 buy point. Shares were up nearly 5% to 44.69. The biotech on Sept. 9 gapped up powerfully after its flagship drug to treat dementia-related psychosis hit its primary endpoint in a Phase 3 trial.

Innovator IBD 50 ETF (FFTY) outperformed nicely, up 0.6%. The exchange traded fund was helped by strong showing from InMode (INMD), SolarEdge Technologies (SEDG) and Leaderboard stock Copart (CPRT).

Selling in China Markets

Hong Kong’s Hang Seng Index slumped 2.3% overnight on news Hong Kong police fired live rounds at protesters. The Shanghai composite gave back 1.8% overnight.

In related news, China-based Alibaba (BABA) gapped down despite news of booming Singles Day sales, the company’s 24-hour online shopping extravaganza. Stocks can “sell the news,” and this appears to be the case with Alibaba. It’s now below a 184.23 buy point after a breakout last week.

Outside of the Dow Jones, heavy-volume gainers included medical device maker Penumbra (PEN). Shares were volatile Friday after the company reported earnings. Despite a loss of nearly 5% Friday, the stock closed near its intraday high. Penumbra shares at one point rallied more than 4% in fast turnover Friday as it continues work on the right side of a cup base.


Have a great day and make sure you check out my BioTech workshop!