Stock market drops Dow Darlings as healthcare stocks plunge

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Major stock indexes were mixed in afternoon trading, rising over the past hour and off the day’s lows. Investors have changed their minds as they sell defensive stocks for more growth plays.




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The S&P 500 rose 0.6% while the Nasdaq was the best performer, up 1.6%. The Dow Jones Industrial Average was the worst, down 0.3%. The Russell 2000 Small Cap Index added 0.7%

The trusted Invesco QQQ (QQQ) technology-based Nasdaq 100 ETF climbed 1.8%.

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

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

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

European markets were mixed, with the German DAX stock index up 0.6% and the Paris CAC 40 up 0.6%. London’s FTSE 100 fell 0.8% to close the day.

The odds of a 50 basis point hike at the Fed’s December 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 healthcare stocks

Healthcare is the worst performing S&P sector today, with the SPDR (XLV) of the selected healthcare sector down more than 2% and now below a buy point of 134.57.

humane (HUM) fell 6.7% as the big lag of the S&P 500. The stock is back near its buy point of 515.08.

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

Harmony Biosciences (HRMY) fell 2.4% as other biotechs fell. AMN health services (AMN) fell 5.3%. The healthcare staffing service provider fell below its 50-day moving average.

Dow Jones defensive darlings sell out

Dow Jones medical stocks hurt the index. UnitedHealth Group (UNH) was down 5.7% and is the Dow’s biggest loser today as investors rushed out of the sector.

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

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

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

IBD 50 lags most indices

The Innovator IBD 50 (FFTY) ETF edged up 0.1%, holding up better than the Dow Jones but lagging the S&P 500.

CVR Energy (CVI) jumped 5.1% as energy stocks strengthened.

Cross country Health care (CCRN) fell sharply by 6.7% and sits below its 50-day line. It’s a big loser of the IBD 50 today and part of the health care sellout.

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