Technology stocks led the market to heavy losses on Tuesday, before the testimony of Fed chief Jerome Powell in the Senate. The $ 1.9 trillion federal stimulus package advanced in the House on Monday night, helping to raise oil prices and some pandemic reopening games. Earnings news set ZoomInfo on fire and placed Nexstar Media in a buying range. Meanwhile, Home Depot fell on the Dow Jones today after its fourth quarter report.
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The Nasdaq Composite deployed 3.5% at the starting bell when Baidu (BIDU) and Tesla (TSLA) fell more than 11% each at the starting bell. The S&P 500 opened with a loss of 1.4%. Dow industrialists fell more than 200 points, down 0.7%. Procter & Gamble (PG) led the Dow Jones today, up almost 3%.
Etsy (ETSY), Tesla and Enphase Energy (ENPH) traded the lowest of the S&P 500 shares. CBRE Group (CBRE) and Extra Storage (EXR) led, with an increase of more than 5% each in earnings news.
Earnings news: ZoomInfo Spikes, Nexstar Breaks Out
In earnings news, Nexstar Media Group (NXST) and IBD Leader Table stock ZoomInfo (ZI) increased after reporting the results on Monday.
ZoomInfo was up more than 10% after beating analysts’ fourth quarter revenue and earnings on Monday. At least four analysts raised their share price targets on Tuesday. Piper Sandler weighed at the top of the list with a target price of 70. ZoomInfo’s shares have been volatile, reversing an 11% advance from the February 3 break and falling below the 53.18 point of purchase – as well as cutting support on its 21-day exponential moving average on Monday.
Technically, the setback triggered a sales rule, but stopped before triggering the automatic stop-loss rule. Tuesday’s pre-market action points to a resumption of the point of purchase at the start of negotiations, a valid buying opportunity. But investors should be on the lookout for changes in the uptrend’s status, especially before diving into young and volatile stocks with the recent initial public offerings.
Texas television broadcaster Nexstar Media Group was up 4.6% after its healthy fourth quarter report. The move put stocks in a buying range above 131.10 points on a 12-week upward basis. The purchase range goes to 137.66.
Dow Jones today: Home Depot discontinues support
Home Depot (HD) collapsed 5% at Dow Jones today, despite reporting strong fourth quarter earnings and revenue hit Monday. The company also increased its quarterly dividend by 10%, to $ 1.65 per share.
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The drop caused Home Depot’s stock to fall below its 10-week moving average. The stock has been fluctuating above and below the line since August, forming a flat 26-week base in the process. The base has a purchase point of 293.05. The stock ended Monday 6% below that entry.
House floor voting stimulus set
In Washington, the House Budget Committee approved President Joe Biden’s $ 1.9 trillion American Rescue Plan on Monday after a 19-16 vote, with Republicans opposing the measure. The change sets the package for a vote in the House plenary later this week. House Democrats want to have the package ready for the president’s signature before the current supplemental unemployment benefits expire on March 14.
Federal Reserve Chairman Jerome Powell is due to address the Senate Committee on Urban, Housing and Banking Affairs at 10 am ET.
Bonds, flat covers; 13-month high oil
Among other US markets, the bonds stabilized, with a 10-year yield of 1.36%, a sharp increase in losses around 0.50% in August. Yields started 2020 at about 1.8%, down from about 2.7% a year earlier.
Oil prices have risen, with West Texas Intermediate oil rising 0.5% to above $ 62 a barrel, and at its highest level since January 8, 2020. The European Brent oil benchmark has risen to close to $ 66 Copper also paused its hike, with stable futures contracts close to $ 4.15 a pound, the highest mark since July 2011.
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Bitcoin falls below $ 46,000
Bitcoin recovered some losses on Tuesday, after falling below $ 46,000 to reach its lowest level since February 11, according to CoinDesk. Bitcoin hit a record high above $ 58,000 on Sunday.
Among Bitcoin-related actions, Marathon Patent Group (MARA) fell 15%, while MicroStrategy (MSTR) traded with a drop of 7.4%. The Amplify Transformational Data Sharing (BLOK) ETF fell 10.5%.
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IBD Leaderboard Stock PayPal Holdings (PYPL) fell 6.5%. PayPal’s shares have felt some influence from Bitcoin’s price fluctuations since October, when the company launched a cryptocurrency trading service that trades Bitcoin. The loss points PayPal’s shares to a fall below its 21-day moving average and a possible support test on its 10-week line.
Coronavirus Update: End of 41-day decline
As the number of cumulative deaths from the coronavirus pandemic in the U.S. rose to over 500,000 on Monday, the seven-day average for new cases of Covid-19 reported daily in the U.S. and worldwide increased for the first time in 41 days. . New cases reported worldwide, on average in the previous seven days, increased to 360,341 on Monday. This is more than 50% below the 745,985 high registered on January 11.
In the US, the seven-day average for new reported cases increased on Monday to 69,528, still more than 72% below the peak of 255,258 reached on January 11, according to the Worldometer.
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Deaths also increased on the second day. The seven-day average for daily reported deaths rose to 2,042 on Monday. The daily average of reported deaths fell in 25 days after reaching a high of 3,447 on January 26.
The Centers for Disease Control and Prevention reports that 75.2 million doses of the vaccine have so far been distributed in the United States. About 64.177 million doses have been administered, meaning that just under 20% of the United States population has received at least one injection.
Among the related actions, Co-Diagnosis (CODX) and Modern (MRNA) were receiving initial hits, down 4.1% and 1.5%, respectively. No clear news was driving the movements.
Dow Jones today: Salesforce earnings
IBD long-term leader Salesforce.com (CRM) will be the last regular season earnings report among Dow Jones shares. He is expected to disclose his fourth quarter earnings after closing on Thursday. Salesforce shares fell 2% in the first Dow Jones trades today.
Salesforce shares are rising on the right side of a crown base that formed after a failed November breakout of a double bottom. MarketSmith estimates the point of purchase at 271.02, and Salesforce shares were about 10% below that mark at the end of Friday’s trading.
Find Alan R. Elliott on Twitter @IBD_Aelliott
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