The Dow Jones Industrial Average briefly dropped more than 125 points on Tuesday, with Bitcoin’s price hitting record highs, reaching 48,000. GME’s shares plunged another 22% on Tuesday at noon. Technology titan Nvidia and Dow Jones leader Disney are in buying ranges in addition to new buying points. Baidu rose 8% after announcing an autonomous driving platform in China.
X
Among Dow Jones leaders, Apple (AAPL) increased 0.1%, while Microsoft (MSFT) rose 0.65% in today’s stock market. Disney (DIS) is in the buying range after Monday’s breakout move, while Nike (NKE) is approaching a new buying point after last week’s bullish move.
Tesla (TSLA) threatened to return Monday’s gains, falling more than 1% in morning trading. Tesla’s shares are close to a new record. Baidu (BIDU) soared 8% to new highs after announcing an autonomous steering platform in China. The platform will provide AI-based urban transport services in Guangzhou.
Dropbox (DBX) and Nvidia (NVDA) are among the top stocks in or near buying zones in Tuesday’s stock market action.
Apple, Microsoft and Tesla are shares of the IBD Leaderboard. Nvidia was the IBD stock of the day, while Dropbox was the choice of the IBD 50 stock to watch on Monday. Meanwhile, Nike was featured in this week’s Stocks Near A Buy Zone.
Dow Jones Today
On Tuesday, the Dow Jones Industrial Average fell 0.1%, while the S&P 500 fell 0.1%. Nasdaq’s high-tech compound rose 0.2% in midday trading.
Overview of the US stock market today |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain / Loss | % Change |
| Dow Jones | (0DJIA) | 31305.71 | -80.05 | -0.26 |
| S&P 500 | (0S and P5) | 3907.84 | -7.75 | -0.20 |
| Nasdaq | (0NDQC) | 14016.73 | +29.09 | +0.21 |
| Russell 2000 | (IWM) | 227.24 | -0.07 | -0.03 |
| IBD 50 | (FFTY) | 47.92 | +0.20 | +0.42 |
Last updated: 11:10 am ET 2/9/2021 |
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Among the exchange-traded funds, the Innovator IBD 50 (FFTY) was up 0.4% on Tuesday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) was up 0.1%. Meanwhile, the SPDR S&P 500 ETF (SPY) fell 0.2%.
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Is the stock market boom overheating?
Looking back at the current upward trend, November was an important month for the stock market. IBD’s The Big Picture signaled the new upward trend after the next day of the market’s rise on November 4th. Meanwhile, early February saw the Dow Jones Industrial Average, Nasdaq and S&P 500 break records. But is the stock market boom overheating?
Monday’s Big Picture warned: “Investors who have been buying in the breaches may enjoy the fruits of their trades, but need to ask themselves whether the stock market is overloaded. The Nasdaq and S&P 500 are close to penetrating trend lines touching index highs that go back to November. As Big Picture has repeatedly noted, the Nasdaq gap with its 50-day moving average is dangerously high. “
He continued: “If the stock market falls, one of the first signs will be erosion in the main shares. So far, these premium shares are holding up well. The IBD 50 has risen 1.4% and is close to new highs.”
Due to the recent strength, investors may again adopt an offensive stance, knowing that there are still good reasons for caution. Look for stocks that are overtaking new points of purchase, like Disney, Dropbox and Nvidia.
Focus on the actions that showed strong relative strength during the recent weakness. They may be some of the market leaders if the indices continue on their record highs.
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Bitcoin Price
Bitcoin’s price increased Monday’s big gains, rising almost 5% on Tuesday morning. Bitcoin’s price reached $ 48,200 before reducing earnings to about $ 46,500 in Tuesday morning’s trading, according to Coindesk.
The Grayscale Bitcoin Trust (GBTC) advanced another 4% on Tuesday, as it continues to recover from its 50-day moving average line.
Dow Jones Shares: Disney, Nike
Disney’s Dow Jones shares burst on Monday and is in the buying range after 183.50 points of purchase on a flat basis, according to analysis by the IBS MarketSmith chart. The 5% buying area rises to 192.68. Disney shares fell 0.5% on Tuesday, but are still about 2% above the entry.
Disney will report earnings after closing on Thursday.
In another part of the Dow 30, Nike is designing a new flat base with a purchase point of 148.05. The shares fell 0.3% on Tuesday.
Nike shares have optimistically recovered its 50-day moving average line in the past few sessions.
Actions to watch: Dropbox, Nvidia
The stock choice to watch Monday’s IBD 50, Dropbox, is trying to exceed a 25.26 point of purchase on a canopy basis. The stock briefly outpaced the buying point on Monday, before closing below it. The shares rose 0.7% on Tuesday morning.
According to the IBD Stock Checkup, the Dropbox stock boasts a perfect 98 out of 99 IBD rating. The Composite Rating – an easy way to identify the main growth stocks – is a mix of fundamental and technical metrics to help investors assess a stock’s strengths.
IBD Leaderboard stock Nvidia is drawing a flat base with a 587.76 point of purchase. The shares are just 3% of entry amid a 0.5% drop on Tuesday. The shares are in the buy range above an early entry of 560.07. Investors can start with a small position at this alternative point of purchase and add more shares to the conventional entry.
According to the Leaderboard comment, “Nvidia has released an alternative entry from its January highs. The stock continues to work on a flat or disk base. Nvidia has been reduced to a quarter of the position on January 27, but has returned halved with today’s move. “
GME stock update
GME’s shares plunged another 22% on Tuesday at noon. GameStop (GME) shares are about 90% below their January 28, 483 high.
Among other short-range targets, AMC Entertainment (AMC) shares fell more than 13% in morning trading and remain about 74% below their recent high.
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Tesla Stock
Tesla’s shares threatened to return the 1.3% gain on Monday, falling more than 1% on Tuesday morning. The shares are just 4% of their historical records.
The January 8 IBD Day Stock column signaled that Tesla was showing several signs of a climax amid a sharp vertical run in recent weeks. But so far, the stock is showing tremendous resilience, after reaching high records last week.
On January 25, Tesla’s shares reached a record high of 900.40. Shares are about 83% above 466 buying points in a cup with handle amid Monday’s action.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones’ top stocks, Apple rose 0.1% on Tuesday and remains below its 138.89 point purchase in a cup with cable. The shares withdrew from entry on January 28.
Meanwhile, Microsoft rose 0.65% on Tuesday morning, in pace to add a two-day winning streak. The software giant’s shares surpassed a buying point of 232.96 in recent sessions. The stock is at the top of the 5% buying zone, which rises to 244.61.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on growth stocks and the Dow Jones Industrial Average.
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