Stock market sells health care and basic stocks to growth stocks

Stock market sells health care and basic stocks to growth stocks

Major stock indexes were up in afternoon trade, up in the past hour and near the day’s highs. Investors are selling health care and basic stocks for more growth play.




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The S&P 500 rose 0.9% while the Nasdaq was the best performer, up 1.9%. The Dow Jones Industrial Average was the worst, rising 0.1%. The Russell 2000 Small Cap Index gained 1.1%

The tech-focused Nasdaq 100-based trusted ETF Invesco QQQ (QQQ) climbed 1.9%.

Volume on the NYSE and Nasdaq was lower compared to the same time Thursday.

Crude oil added 2.9% to $89.00 a barrel. The SPDR Energy Select Sector ETF (XLE) edged up 3.1%. Natural gas fell 5.8% and is below $6 per million British thermal units.

The bond market is closed on Veterans Day. Bitcoin rallied another 7.8% to $16,345.

European markets were mixed, with the German DAX stock index up 0.6% and the Paris CAC 40 up 0.6%. London’s FTSE 100 fell 0.8% to close the day.

The odds of a 50 basis point hike at the Fed’s December meeting are now 80.6%, while 19.4% are looking for a 75 basis point hike, according to the CME FedWatch Tool.

Big stock market losers include healthcare and medical stocks

Healthcare is the worst performing S&P sector today, with the healthcare sector’s SPDR (XLV) down 1.4% and now below a buy point of 134, 57.

Manufacture of medical devices Shock wave (SWAV) fell 8.5% and sits 10% below its 50-day moving average. Medical products stocks joined healthcare stocks in a sell-off.

Manufacturer of blood glucose monitoring devices Dexcom (DXCM) fell 2.9% and remains above its 21-day exponential moving average.

humane (HUM) fell 5.2% as the big lag of the S&P 500. The stock is back near its buy point of 515.08.

Eli Lily (LLY) plunged 4.7% in heavy volume, sending it below its 21-day exponential moving average.

Harmony Biosciences (HRMY) lost 2.3% as other biotechs fell. AMN health services (AMN) fell 4.1%. The healthcare staffing service provider fell below its 50-day moving average.

Dow Jones defensive darlings sell out

Dow Jones medical stocks hurt the index. UnitedHealth Group (UNH) was down 5% and is the Dow Jones’ biggest loser of the day as investors rushed out of the sector.

Defense and Aerospace Stock Lockheed Martin (LMT) fell 5.6% on higher volume, with the defense sector being another losing sector. The stock is finding resistance at its 21-day line.

Merck (MRK) fell 4.1% and sits below its 21-day line. Johnson & Johnson (JNJ) gave up 3.2%, finding support at its 50-day line. Amgen (AMGN) fell 2.4% with the group.

Other defensive sectors also fell today. The SPDR Select Sector Utilities ETF (XLU) fell 1.2%. The SPDR Select Consumer Staples ETF (XLP) fell 0.4% as investors found other places for their capital.

Consumer staples are also down

Campbell’s Soup (CPB) fell 3.2%, triggering the 7%-8% sell rule from the base of the cup with handle, with a buy point of 51.73. Shares fell below the 50-day line.

Kellogg (K) lost 3.3% and fell below its 200-day moving average.

PepsiCo (PEP) fell 2.5% and sits below its 21-day exponential moving average.

IBD 50 lags most indices

The Innovator IBD 50 (FFTY) ETF edged up 0.4%, holding up better than the Dow Jones but lagging the S&P 500.

CVR Energy (CVI) jumped 5.4% as energy stocks strengthened.

Cross country Health care (CCRN) fell 6.2% and sits below its 50-day line. It’s a big loser of the IBD 50 today and part of the health care sellout.

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