The Dow Jones Industrial Average traded lower in today’s stock market as the major indices were sold, eliminating all gains from the previous trading day. Technology stocks led on the downside, while the 10-year Treasury yield reached its highest level in a year. In the last hour of trading, the main indices hovered close to their lows of the day.
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Stock market today
At the close, the low capitalization Russell 2000 index fell 3.7%. Meanwhile, the Dow Jones closed down almost 1.8%. The S&P 500 fell 2.5%, while the Nasdaq compound fell 3.5%. The volume was higher at Nasdaq and NYSE compared to Wednesday’s close, according to preliminary data.
The Labor Department said on Thursday that initial weekly unemployment claims dropped from 111,000 to 730,000 seasonally adjusted last week. It was also the biggest drop in new registrations for regular state programs since last summer.
Meanwhile, the 10-year Treasury’s yield reached its highest point in more than a year, rising 9 basis points to above 1.49%. This is significant because the yield now exceeds the S&P 500 dividend yield of 1.48%. The result is a reduction in the demand for riskier assets, such as growth stocks. This contributed to the sharp drops in technology stocks in recent days.
Overview of the US stock market today |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain / Loss | % Change |
| Dow Jones | (0DJIA) | 31400.50 | -561.36 | -1.76 |
| S&P 500 | (0S and P5) | 3829.25 | -96.18 | -2.45 |
| Nasdaq | (0NDQC) | 13119.43 | -478.54 | -3.52 |
| Russell 2000 | (IWM) | 218.58 | -8.42 | -3.71 |
| IBD 50 | (FFTY) | 44.88 | -2.05 | -4.37 |
Last updated: 4:28 PM ET 2/25/2021 |
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Treasures are considered risk free. Shares are seen as riskier bonds, but now they have lost their premium on bonds. This increases the risk that some investors will switch from stocks to bonds.
In addition, the Innovator IBD 50 ETF (FFTY) fell 4.4%, offsetting gains from the previous trading session. The growth-focused index plummeted as growth stocks hurt in favor of less risky assets. Actions leading the downside in the growth-focused ETF were MaxLinear (MXL) and MarineMax (HZO), with losses of more than 9% each.
Dow Jones Today
The Dow Jones was sold on Thursday, as Boeing (BA) and Intel (INTC) led the reduction, with respective losses of 5.6% and 4.4%.
Boeing shares are building the right side of a 12-week consolidation, according to MarketSmith’s analysis. The stock now remains 11% away from its proper 244.18 point of purchase. Stocks are testing support on the line 50 days after having recovered that area.
Investors should note that the stock has a very low Composite IBD Rating of 9 on a scale of 1 to 99. In addition, its EPS rating is 1 out of the best 99 possible.
Intel’s shares are now 6% away from a 64.05 point of purchase from a canopy base. The chip stock portion formed the base of the cup in the past six weeks. The stock maintains a decent Composite Rating of 80 with a low Relative Strength Rating of 50.
Elsewhere on the Dow, 3M (MMM) was one of three stocks that had a small gain on Thursday. The shares rose 0.6%. The stock is currently being traded within a 5% buying zone on a double bottom basis with 177.56 buying points. The purchase zone reaches 186.43. The shares recently tested support on the 50 day line.
Electric vehicle inventory drop
In addition to Dow Jones, electric vehicle stocks were hit hard on Thursday, with Tesla (TSLA) and Nio (NIO) presented great losses. Recent IPO stock Li Auto (LI) also fell by almost 10%, despite recording a surprising profit.
The shares of the IBD Leaderboard Tesla faced a difficult reversal on Thursday, with a loss of more than 8%. The shares struggled hard after selling up 13% during Tuesday’s session. The shares currently remain below the 50-day line, after falling below this level on Monday. The EV maker halted production of its Model 3 sedan at its Fremont, Calif. Plant, amid a global chip shortage that is hitting the auto industry.
Elsewhere, Chinese EV maker Nio fell more than 9%. The previous breakdown of a 57.30 cup-based buying point failed. The shares also remain below the 50-day line. The China-based company is expected to release its fourth-quarter and full-year 2020 earnings on Monday.
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