The Dow Jones Industrial Average traded lower in today’s stock market, while Nasdaq maintained its gains at the close. Technology stocks recovered some of their losses from the previous day. Over the last hour of trading, the Dow Jones hovered close to its lows, while the S&P 500 and Nasdaq were still at the lows of the day. The shares were widely sold at the close.
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Stock market today
At the close of the day, the Russell 2000 small cap index gained 0.3%. Meanwhile, the Nasdaq compound closed 0.5% higher, after rising more than 1.1%. The S&P 500 saw its previous gains shrink to a 0.5% loss, while the Dow Jones plunged 1.5%. The volume was mixed, trading lower on Nasdaq and higher on the NYSE compared to Thursday’s close, according to preliminary data.
Investors have continued to digest rising US Treasury yields in recent days. The 10-year Treasury yield, considered one of the safest assets to own, fell from 1.513% on Thursday to 1.48% on Friday. The yield is now equivalent to the S&P 500 dividend yield of 1.48%.
Meanwhile, House legislators are expected to approve a $ 1.9 trillion stimulus bill today. The package includes direct checks of $ 1,400 for most Americans. The current supplementary unemployment benefits are expected to expire in mid-March.
Cumulative Covid-19 cases continue to increase, but at a much slower pace than before, as national blockages approach the one-year mark. There are signs of hope as cases begin to stabilize in some states and vaccines continue to be implemented. Worldwide cases are approaching 114 million, with more than 2.5 million deaths, according to the Worldometer.
In the United States, cases have surpassed 29 million, with about 521,000 deaths.
The Innovator IBD 50 ETF (FFTY) gained 2%, recovering some of the losses from the previous trading session. The growth-focused index fell on Thursday, with growth stocks being affected in favor of less risky assets.
ETF shares found strong support over the 50-day line. The stocks leading the rise in the growth-focused ETF were Digital Turbine (APPS) and Etsy (ETSY), with gains of more than 11% each.
Dow Jones Today
The Dow Jones was sold on Friday, with most of its shares trading low. Salesforce.com (CRM) and Proctor & Gamble (PG) led the handicap with respective losses of 6% and 2.2%.
Tech giant Salesforce’s stock broke below support on its 50- and 200-day lines, despite reporting fourth-quarter earnings that exceeded Wall Street targets on Friday. The stock is currently forming a 16-week consolidation with 271.02 purchase points. It is about 19% below the entry, according to analysis by the MarketSmith chart.
Somewhere else, Microsoft (MSFT) and Apple (AAPL) led positively with gains of 1.8% and 1.1%. Apple’s shares finally broke a four-day losing streak. Shares of the iPhone maker fell below the 50-day line last week. Now it’s about 15% off.
Meanwhile, Microsoft shares were trading near a 232.96 buying point in a consolidation, while testing its 10-week moving average.
Finally, Johnson & Johnson (JNJ) gave up more than 2% in heavy trade, as the shares test the 50-day line. An FDA panel is meeting today to vote on the Johnson & Johnson coronavirus vaccine recommendation. The health giant’s vaccine would become the third available in the United States if the FDA goes green.
Johnson & Johnson shares remain within a 5% buy zone from a 157.10 buy point on a long, flat base. The purchase zone reaches 164.96.
But investors should be aware of the increased risk with new investments at the moment, as the market is currently in a “bullish trend under pressure”.
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