IBD: "Dow Jones Tumbles 400 Points, But These 3 Blue Chip Stocks Are Holding Up"

Investor's Business Daily, just a little ray of sunshine:

Key market indexes gapped down at the open and headed lower Monday, as the Dow Jones today led the sell-off with a nearly 400-point drop.

Unrest in Hong Kong and shocking results of a presidential primary election in Argentina added to trade war tensions with China.

The Dow Jones Industrial Average sank 1.5%, the S&P 500 tumbled 1.2% and the Nasdaq composite also lost 1.2%. Small caps tracked by the Russell 2000 shed nearly 1.2%. Preliminary data showed lower volume on the NYSE and Nasdaq vs. Friday, slightly easing the sting.

The Dow Jones index has been stuck under its 50-day moving average now for a full week. It tested the 200-day early last week and is now 1% above the long-term support line. The S&P 500 and Nasdaq regained their 50-day lines on Thursday. They remain a respective 3% and 4% above their 200-day lines.

Twenty nine of the 30 Dow stocks fell, with Pfizer (PFE), Goldman Sachs (GS) and United Technologies (UTX) among the biggest losers. Pfizer sank more than 2% to a 15-month low, weakening further since its July 29 Q2 report and announcement of a merger between its Upjohn unit with Mylan (MYL). Shares are now 23% off their 52-week high.

While most of the Dow Jones stocks are well below their 50-day lines, McDonald's (MCD), Microsoft (MSFT) and Visa (V) have held up remarkably well by comparison.....

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