The stock market shed the Dow Darlings amid exclusion from Health Care, other defensive stocks

The major stock market indices were mixed in afternoon trade, up in the last hour and off the day’s lows. Investors changed their minds as they sold off defensive stocks for more growth plays.


The S&P 500 rose 0.6%, while the Nasdaq was the top performer, up 1.6%. The Dow Jones Industrial Average was the worst performer, down 0.3%. The Russell 2000 small-cap index added 0.7%

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

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

Crude oil added 2.2% to $88.34 a barrel. The Energy Select Sector SPDR ETF (XLE) rose by 2.7%. Natural gas fell 5.8% to below $6 per million British thermal units.

The bond market is closed for Veterans Day. Bitcoin returned another 7.8% to $16,345.

European markets were mixed, with Germany’s DAX index up 0.6% and Paris’ CAC 40 up 0.6%. London’s FTSE 100 was down 0.8% by the end of the day.

Odds for a 50-basis-point hike at the Fed’s December meeting are now at 80.6%, while 19.4% expect a 75-basis-point hike, according to CME FedWatch tool.

Big losers in the stock market include healthcare stocks

Healthcare is today’s worst-performing S&P sector, with the Health Care Select Sector SPDR (XLV) down more than 2% and now below a buy point of 134.57.

Humana (HUM) tumbled 6.7% as a big laggard for the S&P 500. The stock returned near its 515.08 buy point.

Eli Lilly (LLY) fell 6.2% in heavy volume, sending it below its 21-day exponential moving average.

Harmony Biosciences (HRM) lost 2.4% as other biotechs fell. AMN Health Services (AMN) fell 5.3%. The healthcare staffing services provider fell below its 50-day moving average.

Dow Jones Defensive Darlings Sell Off

Dow medical stocks hurt the index. UnitedHealth Group (UNH) fell 5.7% and was the Dow’s biggest loser of the day as investors pulled out of the sector.

Merck (MRK) fell 4% and is below its 21-day line. Johnson and Johnson (JNJ) returned 3.6%, finding support at its 50-day line. Amgen (AMGN) fell 3% with the group.

Other defensive sectors also fell today. SPDR Select Sector Utilities ETF (XLU) decreased by 1.7%. SPDR Select Consumer Staples ETF (XLP) fell 1% as investors found other places for their capital.

PepsiCo (PEP) fell 3% and is below its 21-day exponential moving average.

The IBD 50 lags most indexes

The Innovator IBD 50 ETF (FFTY) rose 0.1%, outperforming the Dow but trailing the S&P 500.

CVR energy (CVI) rose 5.1% as energy stocks rallied.

Running Healthcare (CCRN) fell sharply by 6.7% and is below its 50-day line. It’s a big loser IBD 50 today and it’s part of the health care sell-off.


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