The Dow Jones Industrial Average rose more than 300 points on Tuesday, while tech stocks soared as Treasury yields declined from Monday’s high. Apple and Tesla shares rebounded with sharp gains in morning trading, while Bitcoin took a leap.
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Among Dow Jones leaders, Apple (AAPL) increased by 4% on Tuesday, while Microsoft (MSFT) has risen about 3% in today’s stock market. Disney (DIS) left the buying range on Monday, while Visa (V) remains in the purchase range above a new purchase point.
Tesla (TSLA) rose 14% on Tuesday, seeking to recover part of the 5.8% dip on Monday. After Monday closed, Point correction (SFIX) reported mixed fiscal results for the second quarter.
Among the main actions to be observed, Alphabet (GOOGL), Polaris (PII) and Westlake Chemical (WLK) are holding up well in the current stock market correction.
Microsoft, Polaris and Tesla are shares of the IBD Leaderboard. Alphabet was featured in this week’s Stocks Near A Buy Zone column. Westlake was the IBD day stock on Monday.
Dow Jones Today: Falling Yields
Early Tuesday, the Dow Jones Industrial Average was up 0.9%, while the S&P 500 was up 1.8%. The high-tech composite of the Nasdaq rose 3.4%, in line with the recovery of the sale of 2.4% on Monday.
The 10-year Treasury yield advanced to 1.617% on Monday, according to MarketWatch, before closing at 1.596%. The 10-year yield fell to about 1.533% on Tuesday morning.
Among the exchange-traded funds, the Innovator IBD 50 (FFTY) was up 4% on Tuesday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) was up 3.5%. Meanwhile, the SPDR S&P 500 ETF (SPY) was up 1.5%.
Stock market correction
On March 4, the main stock indices were shaken by heavy sales, while the main growth stocks also plummeted. Nasdaq plunged to close at its lowest level since January 4, becoming negative for the year. The high-tech compound ended Monday with a drop of 2.2% in 2021, after rising to 10% from January 1 to its record high on February 16.
IBD’s market outlook was downgraded to “market correction” on March 4. During these periods of strong stock market weakness, investors should be lightly invested – or even 100% cash – by the next day. Follow-throughs signal a new trend of high potential in the market and give the green light to start buying shares again. It is currently the third day of a new rally attempt after Friday’s recovery.
Use downtime as a chance to take a mental break; however, do not disconnect. Be on the lookout for the next leaders to emerge. One of the best ways to identify the next cycle of leading stocks during stock market corrections is to use the relative strength line. The RS line measures the performance of a share’s price against the S&P 500. If the stock is outperforming the broader market, the RS line tilts upwards. If a stock performs worse than the broad market, the line will point down.
Monday’s Big Picture commented: “Friday’s positive reversal offered hope for a bottom in the stock market. Nasdaq fought a 2.6% loss to close 1.5% higher that day. the bullish momentum did not extend to Monday. In fact, the late weakening of the market is indicative of underlying weakness. “Check IBD’s Big Picture for more comments on the stock market.
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Bitcoin Price
Bitcoin rose about 5% on Tuesday, reaching $ 54,000. Bitcoin’s price was traded around $ 54,400 in the morning stock, according to CoinDesk.
Bitcoin’s price reached an all-time high on February 21, reaching $ 58,332.
The Grayscale Bitcoin Trust (GBTC) ETF sought to extend a winning streak to three sessions on Tuesday, while the Bitcoin tracking ETF continues to recover from its 50-day support level. The GBTC advanced 7.2% on Tuesday morning.
Dow Jones Shares: Disney, Visa
Within the Dow Jones Industrial Average, Disney shares fell more than 1% on Tuesday morning. Shares on Monday rose more than 6% after California signaled that Disneyland and California Adventure could reopen on April 1. That took the stock out of the buying zone on Monday, going from 183.50 buying points on a flat basis.
Visa shares exceeded the purchase range above 211.69 purchase points in a cup with handle after the February 23 break, according to the analysis of the IBD MarketSmith chart. The 5% buying zone rises to 222.27.
The shares gained 1.1% on Tuesday, moving just beyond the buying range.
Actions to watch: Alphabet, Polaris, Westlake
Alphabet, the leader of FANG’s shares, is holding up well in the face of the recent weakness in the stock market. The shares remain extended from a 1,843.93 point of purchase on a flat basis, and are about 2% away from a 2,145.24 entry in a tight three-week pattern.
The shares appeared to recover from Monday’s 4.3% drop, rising more than 2% in morning trading.
Polaris surpassed a buying point of 129.10 on a flat basis on Friday, with an increase of 5.7%. The shares are in the 5% buying zone, which reaches 135.56. Polaris shares were up 0.8% on Tuesday.
According to the IBD Stock Checkup, Polaris stock shows a solid 90 of a perfect 99 IBD Composite Rating. IBD Composite Rating helps investors easily measure the quality of a stock’s fundamental and technical metrics.
Monday’s IBD day stock, Westlake Chemical, released a buying point of 90.46 amid a 1% advance on Tuesday. The shares ended in the 5% buying zone, which reaches 94.98. The stock rose 0.1% on Tuesday morning.
Westlake was added to the IBD Leaderboard on Monday. According to the Leaderboard comment, “the most recent basis for the action is the second stage, and the relative strength line is reaching new highs with the stock breaking. Both are positive elements for the chart.”
Stock market profits: correction of points
After Monday’s close, Stitch Fix reported a loss of 20 cents per share, exceeding estimates. But sales did not meet consensus goals. The company posted revenue of $ 504.1 million, below analysts’ estimates for sales of $ 512.2 million.
Stitch Fix’s shares plunged more than 26% in Tuesday morning trading. The stock ended Monday below its 50-day line, about 40% of its 52-week high.
IBD Live: a new tool for daily stock market analysis
Tesla Stock
Tesla’s shares appeared to burst a five-day losing streak on Tuesday, rising more than 14% in morning trading. The shares may be forming a new basis, but it is too early to identify a new entry.
On February 22, the EV leader broke through his 10-week moving average line, a critical support level.
On January 25, Tesla’s shares reached a record high of 900.40, after climbing up to 93% from a 466 purchase point in a glass with handle. The shares are about 37% below the historical record.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones’ top stocks, Apple rose 4% on Tuesday after falling 4.2% on Monday. Apple’s stock remains below its 10-week line, but a strong recovery above the level would be optimistic for the stock’s prospects.
On February 18, Apple shares triggered the 7% -8% loss-of-sale rule when they fell more than 7% below its 138.89 point of purchase in a glass with a handle.
Meanwhile, Microsoft rose about 3% on Tuesday, looking to recover from its 1.8% drop on Monday. The stock remains below its 232.96 buying point and fell below its 50-day line.
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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