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Nasdaq Sinks Below 13,000; Dow Jones, Small Caps Outperform; These Coronavirus Stocks Sell Off

Nasdaq Sinks Below 13,000; Dow Jones, Small Caps Outperform; These Coronavirus Stocks Sell Off

The Nasdaq briefly undercut 13,000 during afternoon trading in the stock market today as institutional buying and selling pointed to more signs of sector rotation.




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Oil and gas firms rallied ahead of a key meeting Thursday by OPEC and Russia to discuss future production plans. Airline, hotel, cruise ship and other travel stocks advanced. Coronavirus-related stocks — including BioNtech (BNTX), Moderna (MRNA) and West Pharmaceutical Services (WST) — soured.

Moderna undercut its 10-week moving average for the second time in two weeks.

A continued drop below this key level would trigger a key defensive sell rule.

Rotate, Rotate

Meanwhile, enterprise software, internet and computer hardware issues sold off. Their declines hit the Nasdaq composite with a drop of more than 2% with roughly an hour to go in the regular session.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 31454.64 +63.12 +0.20
S&P 500 (0S&P5) 3841.85 -28.44 -0.73
Nasdaq (0NDQC ) 13073.42 -285.37 -2.14
Russell 2000 (IWM) 221.70 -0.02 -0.01
IBD 50 (FFTY) 45.73 -1.34 -2.85
Last Update: 3:12 PM ET 3/3/2021

The S&P 500 dropped nearly 0.7% despite strength in commodity and banking issues. But the Dow Jones Industrial Average edged up nearly 0.3% on the back of gains of 2 points or more from the likes of Boeing

(BA), American Express (AXP), JPMorgan Chase (JPM), 3M (MMM) and IBD SwingTrader play Goldman Sachs (GS).

Small caps continue to outperform in 2021. The iShares Russell 2000 (IWM) ETF erased losses and is fighting hard to keep the 21-day exponential moving average.

But Innovator IBD Breakout Opportunities (BOUT) struggled, sinking 2.9%. Watch to see how the ETF handles a fresh test of technical support at the 50-day moving average.

Beyond Nasdaq: NYSE-Listed Techs Also Down

NYSE-listed Veeva Systems (VEEV) got slammed despite reporting another quarter of outstanding results, including a 44% rise in earnings per share to 78 cents on a 27% top-line gain. The longtime leader in the medical software industry group fell 7.5% and undercut its long-term 200-day moving average for the first time since March 2020.

Veeva is now trading near the lows of a five-month base.

Meanwhile, the IBD Live show on Wednesday noted strength among leading stocks across the fertilizer, steel, regional bank, and heavy construction industries.

Please follow Chung on Twitter: @saitochung and @IBD_DChung

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About the author

Erin Clark

Erin is a sports enthusiast who loves indulging in occasional football matches. She is a passionate journalist who flaunts a perfect hold over the English language. She currently caters her skills for the sports and health section of Report Door.

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