The Dow Jones Industrial Average reversed downward in today’s stock market, after reducing previous gains. Meanwhile, the S&P 500 and Nasdaq sold and traded close to their daily lows at the last minute. Continuing a theme seen in recent days, Nasdaq has led on the negative side, with technology stocks dropping considerably.
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Stock market today
The Russell 2000 low capitalization index fell 0.4%. Meanwhile, the Nasdaq compound dropped 2.7%. The S&P 500 had a loss of 1.3%, while the Dow Jones recorded a decrease of 0.4%. Volume was rising on both the Nasdaq and the NYSE compared to Tuesday’s close, according to preliminary data.
A disappointing job report weighed on key indices on Wednesday. According to ADP, private payrolls increased by 117,000 in February, which was well below the Econoday consensus estimate to 165,000. The Department of Labor will release official February employment data on Friday.
The market appears to be continuing a major sector rotation away from various fields related to technology, such as business software, the internet and computer hardware. In addition, chip stocks continued to trade lower. The iShares Philadelphia Semiconductor Index ETF (SOXX) fell 3.1%, almost at the same level as the overall Nasdaq decline.
However, industry groups such as banks, airlines and oil and gas stocks outperformed. The oil and gas companies met ahead of an important meeting on Thursday by OPEC and Russia to discuss future production plans. The Energy Select Sector SPDR Fund (XLE) was up 1.4% after reducing previous earnings.
Elsewhere, the Innovator IBD 50 ETF (FFTY) fell 3.4%. ETF stocks are once again testing support on the 50-day line. Actions leading the downside in the ETF focused on growth on Wednesday were online education actions Chegg (CHGG) and Etsy (ETSY) with losses of 8% and 12%, respectively.
Dow Jones Today
The Dow Jones reduced previous earnings and turned negative. But the main index was very mixed, with half of the shares falling and the other half rising. The main technology stocks led the negative side, including Intel (INTC), Apple (AAPL), Microsoft (MSFT) and Salesforce.com (CRM).
The tech giant Apple’s shares broke below support on its 50-day line in the past few days, for the first time since October. The stock is currently trying to recover this key support area, according to analysis by the MarketSmith chart.
Meanwhile, chip maker Intel’s shares lost more than 2%. On the positive side, the stock is still close to a buying point of 65.21 on a large double-bottomed basis. The stock remains 8% outside the key buying zone. The graph can also be interpreted as a cup base with handle with a bottom entry at 63.64. The stock recently regained support on its 50 and 200 day lines.
Salesforce shares continue to fall below their 50-day and 200-day lines after breaking below these key support areas last week. The inventory is forming a consolidation basis with 271.02 points of purchase. The shares remain well away from the point of purchase, currently 24% away.
Meanwhile, actions like American Express (AXP), Boeing (BA) and JPMorgan Chase (JPM) led positively with gains of 1.9% or more.
Earned shares
Actions of Veeva Systems (VEEV) lost more than 7% in large volume on Wednesday. The medical software maker sold everything, despite reporting better-than-expected fourth-quarter earnings on Tuesday and providing guidance on the year-round Street-top. The shares recently triggered the sell signal with a 7% -8% loss cut after failing to exit a 314.09 point of purchase in a glass without a handle. Inventory is currently testing support on the 200-day line.
Somewhere else, FuboTV (FUBO) sold strong, falling 18%. The first live TV streaming service and recent IPO shares are currently trading just below its 50-day line, according to MarketSmith’s analysis.
The company fell when the new IPO shares reported a much larger than expected loss. But on the positive side, the company said it added more subscribers than expected in the fourth quarter.
Investors should be aware of the increased risk with new investments at this time, as the market is currently in a “bullish trend under pressure”.
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