The Dow Jones Industrial Average fell lower, while the Nasdaq suffered a late reversal. World Wrestling Entertainment (WWE) stock flew over a buy point in the middle of meme stock mania, even as AMC Entertainment (AMC) and Clover Health Investments (CLOV) was slapped. Microsoft (MSFT) and Merck (MRK) was among the leading blue chips.
A number of stocks managed to gather past buying points despite the mixed action. Papa Johns International (PZZA) and DoubleVerify (DV) both attempted breakouts.
Nasdaq wins as S&P 500 match
Nasdaq was the leading major index, but it saw gains disappear as it closed down 0.1%. Fabric stock Regeneron Pharmaceuticals (RAIN) was the biggest winner and increased 3% Biogen (BIIB) follows closely behind.
The S&P 500 also struggled and faded late to close 0.2%. Top artists here included Catalent (CTLT), which increased 3%, and media inventory Fox (FOX).
The S&P sectors closed mixed with health and utilities leaders. Finance and industry were the biggest laggards.
US stock market today Overview
|Index||Symbol||Price||Profit / loss||% Change|
|S&P 500||(0S & P5)||4219.61||-7.65||-0.18|
Last update: 16:04 ET 06-06-2021
Small caps struggled after recent gains, with Russell 2000 falling 0.6%. Growth stocks were also beaten lower by the bears, with the Innovator IBD 50 ETF (FFTY) falling 0.3%.
Microsoft Stock not enough for Dow Jones
The Dow Jones Industrial Average struggled for momentum and was the worst performing major index, falling 0.4%.
Microsoft was among the most efficient components, but paired gains to close at 0.4%.
The Leaderboard stock has formed a new base and sees a new buy point of 263.29. It moved further away from its 50-day moving average, which is encouraging.
Merck was the best player for Wednesday, rising 2.3%. Larva (CAT) was the worst back, dipping more than 2%.
WWE Stock hovers in the middle of Meme-Mania; AMC is attached
WWE shares exploded past a buying volume in massive volume when it became the latest name to get a boost from meme stock craze.
The infamous WallStreetBets subreddit proclaimed the stock, leading to wins in advance that snowballed after open. Live events returning in July and rumors of an acquisition were given as a reason to invest in the stock.
At one point, the stock was up 22% and closing at almost 11%. Volume ran about nine times the usual pace.
The stock experienced the relative strength line hit a new high as it rose out of a consolidation pattern, MarketSmith analysis shows. The ideal buying point was 61.42 and it ended in its buying zone. WWE shares actually have solid earnings, which is reflected in the EPS rating of 77.
Other meme stocks, however, did not have such a fruitful session. AMC stock fell more than 10% while Clover Health stock, which closed nearly 70% on Tuesday, crashed around 24% in massive volume.
WWE stock jumps are just the latest example of a so-called meme stock rally. The exact identities of the traders pushing prices higher are not clear. But Reddit board WallStreetBets has been widely credited for launching an attempt to upgrade short sellers who had bet these stocks would fall.
MarketSmith data shows that heading into Wednesday’s action would take 11.5 times the average daily volume of the stock for short sellers to cover their positions in WWE stocks. In other words, short-term interest is raised in the midcap growth portfolio.
Papa John’s stock brings out
Pizza warehouse Papa Johns moved over a cup with handles with a buy point of 102.59. But the volume was light and it ended up closing below its buying point.
The stock’s relative strength line has begun to make progress, but earnings and stock market performance are not an idea.
The stock is a turning point where asset fund Starboard Value CEO Jeffrey Smith takes over the reins as Papa John’s new chairman in 2019.
Software warehouse DoubleVerify climbed over a cuplike consolidation pattern and its purchase value of 38.38. But it slipped back under it, which is a bad sign. It closed up 1.9%
The relative strength line of the IPO in April 2021 hit a new high and it became free of its offer price of 27. The company is also profitable.
Follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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