Stock Market Rotates Away From Health Care, Defensive Stocks

Major stock market indexes rose in afternoon trade, rising in the last hour and nearing day highs. Investors are selling off 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, rising 1.9%. The Dow Jones Industrial Average fared the worst, rising 0.1%. The Russell 2000 small-cap index added 1.1%

Nasdaq 100-tracking Invesco QQQ trust ETF capitalized.QQQ) increased by 1.9%.

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

Crude oil added 2.9% to $89.00 per barrel. The Energy Select Sector SPDR ETFAxle) increased by 3.1%. Natural gas plunged 5.8% and is below $6 per million British thermal units.

The bond market is closed in observance of Veterans Day. Bitcoin gave back another 7.8% to $16,345.

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

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 FedWatch’s CME tool.

Big Stock Market Losers include Health Care Stocks and Medical Stocks

Health care is the worst performing S&P sector today, with the SPDR Health Care Select Sector (XIV) decreased by 1.4% and is now below 134.57 Toko points.

Medical device manufacturers Shock wave (SWAT) withdrawn 8.5%, and 10% below 50 days moving average. Medical product stocks joined healthcare stocks in the selloff.

Glucose monitoring device Dexcom (DXCM) give back 2.9% and stay above that 21 day exponential moving average.

field for dry rice cultivation (HUM) tumbled 5.2% as a large S & P 500 laggard. The stock is close to 515.08 buying points.

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

Harmony Biosciences (HRM) lost 2.3% as other biotech fell. AMN Health Services (AMN) down 4.1%. The health care 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% and was the Dow’s biggest loser today, as investors exited the sector.

Defense and aerospace stock Lockheed Martin (LMT) tanked 5.6% in heavier volume, as the defense sector was another losing sector. The stock found resistance at its 21-day line.

Merck (Mark) down 4.1% and below its 21-day line. Johnson & Johnson (JNJ) gave back 3.2%, finding support in its 50-day line. Amgen (AMGN) retreated 2.4% with the group.

Other defense sectors also fell today. SPDR Select Sector Utilities ETFXLU) was cut by 1.2%. SPDR Select Consumer Staples ETFXLP) down 0.4%, as investors found other places for their capital.

Consumer Staples also retreated

Campbell Sup (CPB) pulled back 3.2% triggered the rule to sell 7%-8% of the cup-with-handle base, with a buying point of 51.73. The stock fell below the 50-day line.

Kellogg (K) shed 3.3% and fell below 200 days moving average.

PepsiCo (PEP) is down 2.5% and below its 21-day exponential moving average.

IBD 50 Lags Most Indexes

The Innovator IBD 50 ETFFFTY) edged up 0.4%, holding up better than the Dow, but lagging behind the S&P 500.

CVR Energy (CVI) popped 5.4% as energy stocks saw strength.

Cross country Health care (CCRN) down 6.2%, and below its 50-day line. It’s a big IBD 50 loser right now and part of the healthcare sales.

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