The Dow Jones Industrial Average closed higher, with Apple stock leading the gains while 3M lagged behind. Former President Donald Trump increased pressure on Republicans to trigger a government shutdown, putting House Speaker Kevin McCarthy in a challenging position to balance the demands of hard-line Republicans and the Biden Administration. Concerns over a government shutdown, along with other factors such as sticky inflation and rising oil prices, weighed on investors. Despite the challenging market conditions, some stocks showed encouraging action, including Encompass Health, Unum, and Nov, which all appeared strong near buy points. Treasury yields also rose, with the 10-year yield jumping 10 basis points to 4.54%, while the two-year yield remained essentially flat at 5.13%.
The tech-heavy Nasdaq was the best-performing index, snapping a four-session losing streak and rising 0.5%. GE Healthcare Technologies stood out with a lift of over 3.3%. The S&P 500 also broke its losing streak and gained 0.4%, with Sealed Air as one of the top performers, rising 3.6%. Materials and energy sectors performed the best, while utilities and consumer staples lagged behind. The Russell 2000, representing small caps, saw gains fade towards the end of the session, rising only 0.3% and remaining below its 200-day line. Growth stocks, on the other hand, fared better, with the Innovator IBD 50 ETF gaining 0.6%.
The Dow Jones Industrial Average, although lagging behind other major indexes, reversed higher and rose by 0.1%. Apple stock was among the best performers on the index, gaining 0.7%. Dow Inc. and Chevron were also top performers, rising by 1.7% and 1.5%, respectively. However, 3M was the worst laggard, sliding 2.3% and falling further below its 50-day and 200-day lines. Coca-Cola and McDonald’s were also lagging behind, with KO falling 1% and MCD dipping 0.9%.
Despite negative delivery commentary, Tesla stock managed to inch higher, ending the session up 0.9%. This was in contrast to rival EV stock Li Auto, which cratered by 10% after Huawei teased its first sedan and a new high-end SUV. Barclay’s analyst Dan Levy lowered his estimate for Tesla’s Q3 deliveries, but still believes it will be sufficient to draw down inventory. He also expects a stronger Q4. Meanwhile, outside of the Dow Jones, Encompass Health, Unum, and Nov held strong near buy points, offering potential opportunities for investors in the correction-hit market.
