Dow Jones Plunges As Apple Falls On App Store Bomb; Roblox, EA Stock Jump; AMC pops
The Dow Jones Industrial Average was forced down after a judge ruled Apple (AAPL) can no longer force developers to use in-app purchases. However, a UnitedHealth (A H) had an even greater impact. Roblox (RBLX) and Electronic arts (EA) jumped. Memes Stock AMC Entertainment (AMC) also posted a huge weekly gain.
Meanwhile, Senate Democrats have unveiled a plan that could have serious implications for investors if it comes to fruition. They proposed a 2% excise tax on share buybacks, which could help pay for the alleged massive increase in social spending.
As an example, it would have cost Berkshire Hathaway (BRKB), which is led by legendary investor Warren Buffett, roughly $ 600 million tied to $ 30 billion in share buybacks had it been in effect.
Nasdaq Slides As Small Caps Slip
The Nasdaq slipped despite the good performance of chip stocks. It closed down 0.9%. Interactive Platoon (PTON) is doing the best with a gain of almost 7%. Okta (OKTA) lagged the most, dropping almost 5%.
The S&P 500 was also lower, closing 0.8% lower. United parcel service (UPS) was one of the top performers, with an increase of over 2%. Kroger (KR) was the biggest laggard, dipping more than 7% in profits.
Snapshot of the US Stock Market Today
|Index||symbol||Price||Loss of profit||% Switch|
|S&P 500||(0S & P5)||4458.55||-34.73||-0.77|
Last Modified: 4:08 PM ET 10/9/2021
S&P sectors closed mixed, with materials and energy posting the best gains. Health and public services were the worst laggards.
Small caps also struggled, with the Russell 2000 closing down 1%.
Growth stocks were beaten lower, despite a positive start. The Innovative ETF IBD 50 (FFTY) closed down 1.1%.
Dow Jones Today: Apple Stock dives on App Store decision
The Dow Jones Industrial Average reversed lower and closed low after a failed rally attempt. He finished with a loss of 0.8%
Apple stock was by far the worst performer, falling more than 3% after a judge ruled on its legal battle with “Fortnite” maker Epic Games on Friday.
As the tech giant won nine of ten counts, an injunction was issued stating that the company can no longer ban developers from providing links or other communications that keep users away from in-app purchases of Apple.
This is a key point, as the iPhone maker takes 15-30% of gross sales from these purchases.
Judge Yvonne Gonzalez Rogers said Apple was not a monopoly and its business success “was not illegal”.
But while Apple was a factor, UnitedHealth’s decline had an even bigger impact due to the weighting of the index. It was the second worst performer, down about 2%.
Roblox stock, EA increase
Video game stocks took advantage of the news, with Roblox IPO rising nearly 2%. The stock moved further away from its 50-day line, but remains mired in a consolidation.
Electronic Arts also grew by almost 2%. The stock moved away from its 50-day line and moved closer to a fixed base buy point of 149.03, according to MarketSmith analysis.
Although it is technically approaching a buy point, EA stock is currently hampered by poor overall performance.
However, Take-Two Interactive (OF THEM) was punished following the announcement of a four-month delay on new versions of his hit series “Grand Theft Auto”.
The company said it wanted to apply “more polish” to the products. Take-Two stock closed down 1.9%
AMC Stock Pops
AMC stock ended the day with a gain of more than 3%, deviating even further from its 50-day line.
However, the weekly performance of the stock meme was the most impressive, increasing by around 14%. The stock remains up more than 2,000% since the start of 2021.
The relative strength line has risen sharply, while bullish volume has been higher in recent weeks.
As AMC’s stock exploded, GameStop, the original meme stock, fell more than 4%. Weekly performance was also weak here, dropping just over 6%.
However, it remains up over 900% for the year so far.
Mat for floors and decoration Point of purchase
The Floor & Decor stock was successful in exceeding a flat-based buying point of 128.60. This is a basic second step, and these first step models are more likely to be successful.
FND stocks’ relative strength line has hit a new high, which is a bullish sign. It boasts a perfect EPS rating of 99, while the price-performance ratio is also solid.
Floor & Decor distributes wood and tile flooring through a network of warehouse-style locations across 21 states. Floor & Decor is still a young stock, as it went public in April 2017.
The KLA semiconductor equipment stock attempted to come out of a handle cup. The ideal entry point here is 356.81. However, it closed under its buy zone.
The title presents a solid mix of fundamental and technical performances. The RS line has also grown in recent times.
However, the moving volume was low, suggesting that this is more of a name for a watchlist at the moment.
Please follow Michael Larkin on Twitter at @IBD_MLarkin to learn more about growth stocks and analysis.
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