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Stock Market Shifts To Growth Stocks From Health Care And Defensive


The major stock market indexes all closed positive to finish out the trading day, and near the highs of the day. Investors rotated out of health care and staples stocks for more growth plays.




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The S&P 500 rose 0.9% while the Nasdaq was the strongest performer, up 1.9%. The Dow Jones Industrial Average fared the worst, edging out a small 0.1% gain. The Russell 2000 small-cap index added 0.8%

The tech-heavy Nasdaq 100-tracking Invesco QQQ trust ETF (QQQ) climbed 1.8%.

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

Crude oil added 2.9% to $88.98 per barrel. The Energy Select Sector SPDR ETF (XLE) edged up 2.9%. Natural gas plunged 4.6% and is below $6 per million British thermal units.

The bond market is closed in observance of Veterans Day. Bitcoin gave back another 7.9% to $16,385.

Odds for a 50-basis-point hike at the December Fed 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 Health Care And Medical Stocks

Health care is today’s worst performing S&P sector, with Health Care Select Sector SPDR (XLV) down 1.2% and now below a 134.57 buy point.

Medical device manufacture Shockwave (SWAV) pulled back 8.8%, and is more than 10% below its 50-day moving average. The medical products stocks joined the healthcare stocks in a sell-off.

Glucose monitoring device maker Dexcom (DXCM) gave back 3.2% and remains above it’s 21-day exponential moving average.

Humana (HUM) tumbled 5.3% as a big S&P 500 laggard.

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

Harmony Biosciences (HRMY) lost 3.1% as other biotechs fell. AMN Healthcare Services (AMN) plummeted 5.7%. The health care staffing services provider dropped below its 50-day moving average but bounced back, and closed above it.

Dow Jones Defensive Darlings Sell Off

The Dow’s medical stocks hurt the index. UnitedHealth Group (UNH) was down 4.1% and is the Dow’s biggest loser of the day, as investors scrambled out of the sector.

Defense and aerospace stock Lockheed Martin (LMT) tanked 5.5% on heavier volume, as the defense sector was another losing sector. The stock found resistance at its 21-day exponential moving average.

Merck (MRK) dropped 3.9% and found support at its 21-day line. Johnson & Johnson (JNJ) gave back 3%, finding support at its 50-day line. Amgen (AMGN) retreated 2.1% with the group.

Other defensive sectors also fell today. The SPDR Select Sector Utilities ETF (XLU) trimmed 1.1%. The SPDR Select Consumer Staples ETF (XLP) dropped 0.1%, as investors found other places for their capital.

Consumer Staples Also Retreat

Campbell Soup (CPB) pulled back 3.1% triggering the 7%-8% sell rule from cup-with-handle base, with a buy point of 51.73. Shares dropped below the 50-day moving average.

Kellogg (K) shed 2.9% and dropped below its 200-day moving average.

PepsiCo (PEP) dropped 2% and found support at its 21-day line.

IBD 50 Lags Most Indexes

The Innovator IBD 50 ETF (FFTY) edged up 0.3%, holding up better than the Dow, but lagging the S&P 500.

CVR Energy (CVI) popped 6.1% as energy stocks saw strength.

Cross Country Healthcare (CCRN) dropped 7.9%, and is below its 50-day line. It was the IBD 50 biggest loser today and part of the health care sell-off.

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