The Dow Jones Industrial Average edged higher, despite Senate Minority Leader Mitch McConnell blocking a Democrat debt move. Boeing (BA) was the top blue chip in the stock market today, while Intel (INTC) lagged. EV leader Tesla (TSLA) showed strength. Meanwhile, comments by Tesla CEO Elon Musk boosted Bitcoin, but gains faded.
A few stocks stood out in the winners’ circle as the broader market struggled for direction. Textron (TXT) and Jones Lang LaSalle (JLL) both saw their relative strength lines hit new heights. The latter stock was featured on IBD Live.
Mitch McConnell Blocks Debt Move
Senate Minority Leader Mitch McConnell blocked the latest Democratic efforts to raise the debt limit on Tuesday.
“There is no chance, no chance the Republican conference will go out of our way to help Democrats conserve their time and energy, so they can resume ramming through partisan socialism as fast as possible,” McConnell said.
Senate Majority Leader Chuck Schumer tried to hold a vote to increase the debt limit with just a simple majority of senators. That fell on deaf ears from Republican leaders.
Senate Democrats are now looking to vote on a stopgap bill to fund the federal government that would remove the provision to increase the federal borrowing limit.
It comes after Treasury Secretary Yellen warned Congress that it must raise the debt limit by Oct. 18.
Meanwhile, Treasury yields, which have pressured rate-sensitive stocks such as techs, eased slightly in the morning. But the yield on the 10-year note edged higher and sat around 1.54%.
Nasdaq Lags, Growth Stocks Struggle
The Nasdaq was lagging the other major indexes, with weakness in tech taking its toll. But the composite index is trying to rebound off session lows after it dipped nearly 0.2% lower. At around 2:15 p.m. ET, the Nasdaq edged up more than 0.3%.
Dollar Tree (DLTR) led with a gain of more than 16% on plans to add price points above $1 across Dollar Tree Plus stores. It will also test price points above $1 in some legacy stores. JD.com (JD) lagged most with a dip of more than 4%.
The broader S&P 500 was faring better, though its gain of 0.2% was still slim. Outside Dollar Tree, Cimarex Energy (XEC) fared best with a gain of over 4%. Generac (GNRC) was the worst performer, falling almost 6%.
The S&P sectors were mixed, with defensive plays utilities and staples making the best gains. Technology and materials were the worst laggards.
Small caps were also struggling, but the Russell 2000 turned a small loss into gains of 0.1%.
Growth stocks were trying to fight back after Tuesday’s spanking. However the Innovator IBD 50 ETF (FFTY) remained down 0.1%.
Dow Jones Today: Boeing Stock Climbs As Intel Stock Falls
The Dow Jones Industrial Average fared best out of the major indexes, rising 0.7%.
Boeing was the top stock on the Dow Jones today, rising as much as 5%. The blue chip was fighting back after closing down 2.6% Tuesday.
The aerospace giant managed to fly above its 50-day line, but was turned away at the 200-day moving average.
Intel was one of the worst laggards however, dipping more than 1%. It comes as other chip stocks struggle. The downward pressure forced Intel stock under its 50-day moving average.
Elon Musk Talks Bitcoin, Tesla Stock Firm
Tesla CEO Elon Musk propped up Bitcoin with comments he made at the Code Conference in Beverly Hills, Calif. However, Bitcoin fell.
“It is not possible to, I think, destroy crypto, but it is possible for governments to slow down its advancement,” he said.
When asked about whether the U.S. government should be involved in regulating cryptocurrencies he said they should “do nothing.”
Meanwhile Tesla stock was continuing to outperform many rival growth stocks for the month, but gains on Wednesday faded to a 0.5% loss in afternoon trade.
The stock has been in fine form recently. It managed to move above a buy point on Friday, and is well clear of a an early entry at 730.
The relative strength line has been making progress since mid-August, which is an encouraging sign for investors.
The stock has been boosted by Friday night’s release of the FSD Beta request button. This allows Full-Self Driving owners or subscribers to opt in, albeit after a seven-day vetting period.
On Saturday night, the firm released FSD Beta 10.1. This is the latest edition of its controversial driver-assist software.
Its bullish action has earned it a place on the prestigious IBD Leaderboard list of leading growth stocks.
Beyond Dow Jones: These Stocks Show Strength
It is a wise move to find stocks showing strength for your watchlist when the broader market is struggling.
Industrial conglomerate Textron saw its relative strength line flash a new high, a good sign in the current conditions.
The aerospace stock has formed a new flat base, and is shooting for an ideal entry point of 74.90. This is an early stage pattern, a positive. It boasts good earnings and price performance.
Real estate play Jones Lang LaSalle also saw its RS line climb to new levels. Price performance over the past 12 months is excellent, which is reflect in its Relative Strength Rating of 95 out of 99.
Big money has been getting behind the stock of late, with its Accumulation/Distribution Rating coming in at a strong B .
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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