The Dow Jones Industrial Average fell more than 400 points at noon on Thursday, with the shares being sold, despite better-than-expected weekly unemployment insurance data.
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The Nasdaq plunged 3.4%, the S&P 500 fell 2.2% and the Dow Jones industrials dropped 1.5% today. Small capitalizations monitored by Russell 2000 fell 2.8%. The volume was higher on both major exchanges compared to the same time on Wednesday.
Early Thursday, the Department of Labor reported that claims for unemployment benefits for the first time dropped sharply to 713,000 in the week ending February 20. This was well below the previous week’s 861,000 claims. Economists had expected a much smaller drop to 825,000 complaints.
The rise in bond yields alarms stock investors. The 10-year Treasury yield reached its highest level since February 2020, up 7 basis points to 1.45%.
Technology stocks propelled Nasdaq to a 43.6% gain in 2020, its fifth best year ever. The S&P 500 was up 16.3% and the Dow was up 7.2% last year. Read The Big Picture for a detailed daily market analysis.
Covid-19 Update
The Covid-19 pandemic continues to cloud the US economy as national blockages approach the one-year mark. But there are signs of hope as vaccinations are launched and cases begin to stabilize in some states.
Overview of the US stock market today |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain / Loss | % Change |
| Dow Jones | (0DJIA) | 31559.68 | -402.18 | -1.26 |
| S&P 500 | (0S and P5) | 3852.47 | -72.96 | -1.86 |
| Nasdaq | (0NDQC) | 132.15.09 | -382.88 | -2.82 |
| Russell 2000 | (IWM) | 220.49 | -6.51 | -2.87 |
| IBD 50 | (FFTY) | 45.18 | -1.75 | -3.73 |
Last updated: 12h54 ET 25/02/2021 |
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Cumulative cases of Covid-19 worldwide have reached 113 million, with more than 2.5 million deaths, according to the Worldometer. In the United States, cases are now approaching 29 million, with almost 519,000 deaths, although the number of new cases in the United States has declined dramatically in recent weeks.
While countries rush to administer vaccines, Modern (MRNA) jumped almost 5% in the twice normal trade. But it cut gains by half in early afternoon trading. Moderna’s shares found support in its 50-day moving average earlier this week after a breach broke.
On Wednesday, biotechnology reported a larger-than-expected loss in the fourth quarter. But sales more than doubled Wall Street’s targets due to rapidly growing vaccine manufacturing plans. The Covid-19 vaccine from Moderna is one of two authorized in the USA for emergency use. Analysts expect Moderna to make its first annual profit this year.
Also on Wednesday, Moderna said it had manufactured a coronavirus vaccine to test for a worrying mutation in South Africa. The new vaccine has already been sent to the National Institutes of Health for clinical studies.
Dow losers and winners
Boeing (BA) fell more than 4% in the fast turn, as it continues to shape the right side of the cup base. The potential point of purchase is 244.18, according to the analysis of the MarketSmith chart. On Wednesday, Boeing shares rose 8%.
The Federal Aviation Administration is demanding engine inspections before Boeing 777 jets equipped with a particular Pratt & Whitney engine can fly again. The order came after a jet bound for Hawaii failed shortly after takeoff from Denver.
Among other actions by Dow, large technology companies Apple (AAPL), Intel (INTC) and Salesforce.com (CRM) gave up more than 2% each. Apple recently triggered the sales rule with a 7% -8% loss from a 138.89 point purchase of a cup with cable.
Nike (NKE) and 3M (MMM) rose less than 1% each. Nike is building a stable nine-week base with a buying point of 148.05. It is about 8% of the entrance. HSBC upgraded the sports shoe giant to buy on hold and increased its price target from 125 to 158.
Outside the Dow
Travel booking agents, automakers and chip stocks led the handicap among IBD’s 197 industrial groups. Electronic retailers, department stores and Internet retailers have all resisted the decline.
Electric vehicle manufacturer Li Auto (LI) slipped 11% in heavy trade, despite reporting a decline in fourth quarter earnings and revenues. The results included a surprising profit and a 356% year-on-year increase in auto deliveries in January.
Tesla (TSLA) fell 7% as it continues to trade below its 50-day moving average, which was breached this week for the first time since November. The shares are 21% below their high, but remain well extended from a 466 point of purchase. Still, making some profits may be prudent, as Tesla triggered two sell signals. Tesla is a stock of the IBD Leaderboard.
In the consumer electronics retail group, GameStop (GME) skyrocketed 65% in massive volume, as Reddit / WallStreetBets appeared to be back in the short-squeeze game. On Wednesday, the shares rose 104%. AMC Entertainment (AMC) jumped 10%, on the right track to extend his winning streak to five. The shares rose 18% on Tuesday and Wednesday.
Bitcoin rebounded above $ 51,000 and traded up 3% to $ 51,177 on Wednesday, according to Coindesk. But in the early afternoon, he was below the $ 50,000 level. The Grayscale Bitcoin Trust (GBTC) reversed a 2.5% loss and was below the 48.75 point purchase of a defective V-shaped cup pattern.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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