The Dow Jones Industrial Average lost ground amid a broad stock market reversal. Apple (AAPL) and Microsoft (MSFT) were among the best performing blue chips, while Boeing (BA) dived on a record loss.
“The Big Short” investor Michael Burry warned trading in GameStop (GME) stock was “insane” as it gained more than 100%. Among EV stocks, Tesla (TSLA) lost ground ahead of earnings, while Chinese rival Nio (NIO) and General Motors (GM) also hit reverse gear.
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Meanwhile, the cumulative number of confirmed coronavirus cases in the U.S. now sits above the 26 million mark Wednesday, according to the Worldometer data tracker. The total of virus-related deaths is nearing 440,000.
Nasdaq, S&P 500 Reverse
The Nasdaq suffered a sharp reversal, giving up around 1.8%. Sirius XM (SIRI) and Moderna (MRNA) were the best performers, gaining around 7% each. Starbucks (SBUX) was the biggest laggard, falling more than 7%.
The S&P 500 was the worst performing major index, slipping around 2%. American Airlines (AAL) fared best with a gain of more than 11%, while L Brands (LB) was the biggest laggard. It fell around 8%.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 30545.24 | -391.80 | -1.27 |
| S&P 500 | (0S&P5) | 3782.86 | -66.76 | -1.73 |
| Nasdaq | (0NDQC ) | 13418.52 | -207.55 | -1.52 |
| Russell 2000 | (IWM) | 211.07 | -2.23 | -1.05 |
| IBD 50 | (FFTY) | 44.48 | -0.99 | -2.18 |
Last Update: 11:56 AM ET 1/27/2021 |
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Volume was mixed compared with the same time Tuesday. It rose around 33% on the Nasdaq and fell by almost 50% on the NYSE. CAN SLIM investors prefer volume to be lower on a down day.
It was a tough day for sectors, with most losing ground. Consumer discretionary and consumer staples were faring best. Utilities were the biggest laggard.
Small caps were faring better than the major indexes, but were still negative. While it was off lows, the Russell 2000 was down around 0.9%.
Growth stocks were also being battered by the bears. The Innovator IBD 50 ETF (FFTY) gave up almost 2%. Chipmaker Advanced Micro Devices (AMD) was among the worst performers on the IBD 50, despite an earnings beat. It was down more than 5%. It crashed through its 50-day line, which is a sell signal.
Apple Stock Slips As Dow Jones Falls
The Dow Jones Industrial Average was clubbed lower amid the broad downward pressure. It slipped closer to its 50-day moving average as it gave up ground.
Among the best performers was Microsoft, which pulled further clear of a 232.96 buy point as it rose more than 1%. It broke out from a consolidation pattern Tuesday, according to MarketSmith analysis. An early entry also exists at 227.28.
MSFT stock currently holds a good, not great, IBD Composite Rating of 82. Its relative strength line has been making headway of late.
Apple stock was also among the better performers on the index. However, it gave up early gains as it fell 0.5%. Apple earnings are due after the close. The iPhone maker is expected to earn $1.41 a share on revenue of $103.1 billion.
Among the biggest laggards was Boeing, which slipped more than 2% after the firm posted a record annual loss. It lost further ground on its 50-day line. Walt Disney (DIS) fared worst, losing more than 3%.
Big Short Investor Warns Of ‘Dangerous’ GameStop Stock
GameStop stock surged almost 150% as it made a monster move. It is up around 450% so far this week. The move has seen its RS Rating surge to a best possible 99.
But star investor Michael Burry, whose story was featured in “The Big Short,” took to Twitter to warn about the stock.
“What is going on now — there should be legal and regulatory repercussions,” he said in a now-deleted tweet. “This is unnatural, insane, and dangerous.”
Burry’s investment firm Scion Asset Management reported holding a 2.4% stake in GameStop as of Sept. 30. It has been cited by some traders as a reason to own the stock.
Tesla Stock Slides Ahead Of Earnings
IBD Leaderboard stock Tesla was losing ground ahead of earnings, giving up 0.6%. It has been trading tightly of late.
Tesla stock has a best-possible IBD Composite Rating of 99. Its stellar stock market performance is key. It is already up more than 25% so far in 2021.
The firm posts earnings after the close. The electric-auto leader is expected to earn $1 a share on revenue of $10.4 billion.
Auto giant General Motors also hit reverse, skidding by around 5%. GM stock continues to give up gains after reaching a profit-taking zone last week.
Chinese EV stock Nio also stalled, slipping about 3%. It has fallen back into a buy zone. It broke out from a 57.30 buy point in a cup base two weeks ago.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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