Bulletin
Investor Alert

New York Markets Open in:

Need to Know Archives | Email alerts

Sept. 20, 2021, 10:27 a.m. EDT

Buy the dip shopping? Four growth stocks that are bucking a down market

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    SPDR S&P 500 ETF Trust (SPY)
  • X
    Invesco QQQ Trust Series I (QQQ)
  • X
    S&P 500 Index (SPX)

or Cancel Already have a watchlist? Log In

By Barbara Kollmeyer

Investors are seeing a tough start to the week as Wall Street and global equities spew red ink. That’s as China property worries may have finally spooked markets, with giant Evergrande taking a major spill.

Concerns about China contagion are piling onto a laundry list of reasons to fret this market: “The persistence of the Delta variant, elevated inflation, supply chain blockages and raw material price increases are combining to form a toxic cocktail which is seeing optimism evaporate,” sums up Richard Hunter, head of markets at Interactive Investor.

Investors were promised anything but roses for September, so they should be well prepared for the 5% to 10% drop in the next few months that Wall Street analysts keep warning about.

Does that mean one should have a dip shopping list handy? Check out these growth names ideas from our call of the day , from Larry Tentarelli, editor and publisher of the Blue Chip Daily Trend Report .

“Each of these stocks is in an uptrend of higher highs and higher lows, over all key moving averages. While general market direction can have an impact on all stocks, these 4 high growth leaders are showing signs of outperformance,” Tentarelli writes.

The tech-related companies are all 20% or more below all-time highs yet managed weekly gains last week, bucking losses for the SPY /zigman2/quotes/209901640/composite SPY -0.87% and QQQ /zigman2/quotes/208575548/composite QQQ -1.74% — two main exchange-traded funds that track the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.84% and the Nasdaq-100 /zigman2/quotes/210598364/realtime NDX -1.74% indexes — writes Tentarelli.

First up is vacation rentals group Airbnb /zigman2/quotes/222990650/composite ABNB -1.68% , which is down 24.7% from its all-time highs reached in February, but still ended Friday at a four-month weekly closing high.

He notes improving price momentum for AirBNB, which has been trading above the 20, 50 and 100-day moving averages. Airbnb shares are up 15% from their public debut in early December 2020.

The next three picks are in the cloud software space, starting with Palantir /zigman2/quotes/221054928/composite PLTR -3.61% , which closed Friday at a 7-month weekly closing high, but remains 36.2% off its all-time highs from January. Palantir is trading above all four key daily moving averages, said Tentarelli, adding that “the 20-dma recently crossed above the 50, 100 and 200-dma, indicating very strong near-term price momentum,”

Unity Software /zigman2/quotes/221035391/composite U -3.58% also finished at a 7-month weekly closing high on Friday, but remains 21.8% off its December 2020 all-time highs. It’s trading above all four key moving averages, and recently had two bullish crosses.

Last one is Snowflake /zigman2/quotes/220991541/composite SNOW -4.21% , which settled a 10-month weekly closing high on Friday, its highest of the year so far, but is still 24.7% off December 2020 highs. Snow is trading above 20,50,100 and 200 DMAs and made bullish 20 day/200 day and 50 day/200 day crosses over the past 5 weeks, he said.

Evergrande sours the mood and Yellen warns

Property shares tumbled in China, with Evergrande /zigman2/quotes/208605330/delayed HK:3333 -19.56% down 14%. The property giant faces two crucial bond payment deadlines this week as default fears grow .

China regulators met with Wall Street representatives last week to defend their tech sector crackdown, say sources . Meanwhile, young fans of China’s version of video app TikTok are facing screen time limits .

Treasury Secretary Janet Yellen urged Congress to raise or suspend the nation’s debt ceiling or risk “widespread economic catastrophe,” in a Wall Street Journal op-ed column. The Treasury could default on its bills by October if a split Senate can’t reach a deal to raise the debt limit.

Pfizer /zigman2/quotes/202877789/composite PFE +2.32% and German partner BioNTech said a Phase 2/3 trial of their COVID-19 vaccine in children aged 5 to 11, showed it was safe and effective and produced a “robust” neutralizing antibody response.

Investors will be on the lookout for any tapering talk from a two-day Federal Open Market Committee that begins Tuesday. A bunch of other global central banks will meet too.

Netflix /zigman2/quotes/202353025/composite NFLX -2.33% and Apple /zigman2/quotes/202934861/composite AAPL -1.17% were big winners at Sunday’s Emmy awards with “Ted Lasso,” and “The Crown”. Not big winners? Actors of color when it came to performance awards.

The markets

Stocks /zigman2/quotes/210598065/realtime DJIA -0.17% /zigman2/quotes/210599714/realtime SPX -0.84% /zigman2/quotes/210598365/realtime COMP -1.92% are deep in the red , with European stocks /zigman2/quotes/210599654/delayed XX:SXXP +0.81% also struggling as Hong Kong’s Hang Seng /zigman2/quotes/210598030/delayed HK:HSI -1.76% slid 3.3% — China and other markets were closed for holidays — on those Evergrande worries. Iron ore prices sank again as China stepped up restrictions on industrial activity in some provinces. Other commodities such as oil /zigman2/quotes/209723049/delayed CL00 +2.78% , copper , and palladium also fell.

Cryptocurrencies are also having a tough time, led by losses for ether /zigman2/quotes/108573964/realtime ETHUSD -3.35% .

Random reads

A volcano on one of Spain’s Canary Islands erupted Sunday, sending lava spewing. Properties have been destroyed and thousands have had to flee.

Also in Spain, more than 25,000 students and other revelers held a megaparty at a Madrid university on Friday, with the last revelers leaving around 7 a.m. Saturday.

Need to Know starts early and is updated until the opening bell, but sign up here to get it delivered once to your email box. The emailed version will be sent out at about 7:30 a.m. Eastern.

Want more for the day ahead? Sign up for The Barron’s Daily, a morning briefing for investors, including exclusive commentary from Barron’s and MarketWatch writers.

/zigman2/quotes/209901640/composite
US : U.S.: NYSE Arca
$ 453.42
-3.98 -0.87%
Volume: 137.33M
Dec. 3, 2021 4:00p
loading...
/zigman2/quotes/208575548/composite
US : U.S.: Nasdaq
$ 383.13
-6.78 -1.74%
Volume: 105.35M
Dec. 3, 2021 4:00p
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
4,538.43
-38.67 -0.84%
Volume: 2.71B
Dec. 3, 2021 5:35p
loading...
/zigman2/quotes/210598364/realtime
US : U.S.: Nasdaq
15,712.04
-278.72 -1.74%
Volume: 1.00M
Dec. 3, 2021 5:16p
loading...
/zigman2/quotes/222990650/composite
US : U.S.: Nasdaq
$ 166.75
-2.85 -1.68%
Volume: 6.46M
Dec. 3, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$106.54 billion
Rev. per Employee
$603,573
loading...
/zigman2/quotes/221054928/composite
US : U.S.: NYSE
$ 18.98
-0.71 -3.61%
Volume: 56.04M
Dec. 3, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$38.05 billion
Rev. per Employee
$448,000
loading...
/zigman2/quotes/221035391/composite
US : U.S.: NYSE
$ 146.88
-5.46 -3.58%
Volume: 7.41M
Dec. 3, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$42.01 billion
Rev. per Employee
$193,063
loading...
/zigman2/quotes/220991541/composite
US : U.S.: NYSE
$ 345.11
-15.17 -4.21%
Volume: 6.02M
Dec. 3, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$103.84 billion
Rev. per Employee
$237,294
loading...
/zigman2/quotes/208605330/delayed
HK : Hong Kong
$ 1.81
-0.44 -19.56%
Volume: 338.94M
Dec. 6, 2021 4:08p
P/E Ratio
1.26
Dividend Yield
10.06%
Market Cap
$29.71 billion
Rev. per Employee
$4.66M
loading...
/zigman2/quotes/202877789/composite
US : U.S.: NYSE
$ 54.27
+1.23 +2.32%
Volume: 37.57M
Dec. 3, 2021 4:02p
P/E Ratio
16.11
Dividend Yield
2.87%
Market Cap
$304.61 billion
Rev. per Employee
$533,860
loading...
/zigman2/quotes/202353025/composite
US : U.S.: Nasdaq
$ 602.13
-14.34 -2.33%
Volume: 4.83M
Dec. 3, 2021 4:00p
P/E Ratio
54.27
Dividend Yield
N/A
Market Cap
$266.71 billion
Rev. per Employee
$2.66M
loading...
/zigman2/quotes/202934861/composite
US : U.S.: Nasdaq
$ 161.84
-1.92 -1.17%
Volume: 118.02M
Dec. 3, 2021 4:00p
P/E Ratio
28.86
Dividend Yield
0.54%
Market Cap
$2655.21 billion
Rev. per Employee
$2.38M
loading...
/zigman2/quotes/210598065/realtime
US : Dow Jones Global
34,580.08
-59.71 -0.17%
Volume: 444.85M
Dec. 3, 2021 5:35p
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
4,538.43
-38.67 -0.84%
Volume: 2.71B
Dec. 3, 2021 5:35p
loading...
/zigman2/quotes/210598365/realtime
US : Nasdaq
15,085.47
-295.85 -1.92%
Volume: 4.96M
Dec. 3, 2021 5:16p
loading...
/zigman2/quotes/210599654/delayed
XX : STOXX
466.50
+3.73 +0.81%
Volume: 0.00
Dec. 6, 2021 10:16a
loading...
/zigman2/quotes/210598030/delayed
HK : Hong Kong Exchange
23,349.38
-417.31 -1.76%
Volume: 2.42M
Dec. 6, 2021 4:08p
loading...
/zigman2/quotes/209723049/delayed
US : U.S.: Nymex
$ 68.10
+1.84 +2.78%
Volume: 71,739
Dec. 6, 2021 4:21a
loading...
/zigman2/quotes/108573964/realtime
US : Kraken
4,013.94
-139.28 -3.35%
Volume: 159.35M
Dec. 6, 2021 4:30a
loading...

This Story has 0 Comments
Be the first to comment
More News In
Markets

Story Conversation

Commenting FAQs »

Partner Center

World News from MarketWatch

Link to MarketWatch's Slice.