The Dow Jones Industrial Average fell briefly more than 300 points on Tuesday, while tech stocks reduced losses with monetary comments from Fed Powell chief. Bitcoin fell below $ 45,000. The shares of leaders EV Nio and Tesla plunged 15% and 12% before cutting losses.
X
Among Dow Jones leaders, Apple (AAPL) fell 3.8%, while Microsoft (MSFT) fell more than 1% in today’s stock market. Disney (DIS) is back in the purchase range above an entry. About that, Home Depot (HD) fell 5% despite strong earnings results on Tuesday.
Tesla (TSLA) plummeted up to 12% on Tuesday, while Nio (NIO) fell 15%, as both continue to fall sharply. Both reduced their heavy losses in the morning trade. Cadence Design Systems (CDNS) and ZoomInfo (ZI) reported strong earnings results on Monday.
Apple, Microsoft, Tesla and ZoomInfo are shares of the IBD Leaderboard. Shoals Technologies was the stock of IBD’s day on Thursday.
Dow Jones today: Powell comments
On Tuesday, the Dow Jones Industrial Average fell 0.2%, while the S&P 500 fell 0.3%. Nasdaq’s high-tech compound fell 1.1% in morning trading, after dropping up to 3.9% in the first few minutes of trading.
On Tuesday, Fed chief Jerome Powell reiterated that the Fed is “committed to using our full range of tools to support the economy and help ensure that the recovery from this difficult period is as robust as possible”, in a speech to members of Congress.
Powell commented that inflation and employment remain well below the Fed’s target, meaning that moderate monetary policy is likely to remain in place.
Overview of the US stock market today |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain / Loss | % Change |
| Dow Jones | (0DJIA) | 31368.26 | -153.43 | -0.49 |
| S&P 500 | (0S and P5) | 3844.28 | -32.22 | -0.83 |
| Nasdaq | (0NDQC) | 13273.63 | -259.42 | -1.92 |
| Russell 2000 | (IWM) | 219.19 | -4.54 | -2.03 |
| IBD 50 | (FFTY) | 45.72 | -1.76 | -3.71 |
Last updated: 10:36 ET 2/23/2021 |
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Among the exchange-traded funds, Innovator IBD 50 (FFTY) traded down 4.5% on Tuesday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) lost 2.3%. Meanwhile, the SPDR S&P 500 ETF (SPY) fell 1%.
Stock market rally
Looking back at the current bullish trend, November was an important month for the stock market. IBD’s The Big Picture signaled the new upward trend after the next day of the market’s rise on November 4th. Meanwhile, mid-February saw the Dow Jones Industrial Average, Nasdaq and S&P 500 retreat from record highs.
Monday’s Big Picture warned: “Just four trading sessions ago, the market capitalized-weighted Nasdaq hit new historic highs and closed above 14,000 for the third consecutive session. But a fourth drop in the last five sessions has now reduced the updated advance index. to 5%. “
Focus on actions that show strong relative strength during the current weakness. They may be some of the market leaders if the indexes manage to return to their records.
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Bitcoin Price Dives
Bitcoin plunged around 13% on Tuesday morning, dropping briefly below $ 45,000 before reducing losses to $ 46,700 in morning trading, according to CoinDesk. Bitcoin’s price reached $ 57,000 on Saturday and $ 58,000 on Sunday, reaching $ 58,332.
The Grayscale Bitcoin Trust (GBTC) ETF fell 12%, threatening to increase the 5.6% drop on Monday.
Dow Jones Shares: Disney
Within the Dow Jones Industrial Average, Disney is back in the buying range, moving from 183.50 points of purchase on a flat basis, according to analysis by the IBD MarketSmith chart. The 5% buying area rises to 192.68.
Disney shares advanced 4.5% on Monday, before reducing losses to less than 0.1% on Tuesday morning.
Dow Jones Profit: Home Depot
Dow Jones giant Home Depot fell more than 5% on Tuesday morning after the company’s earnings results before opening. The stock is trying to find support near its 50-day line.
The company reported better-than-expected earnings and sales results in the fourth quarter. Home Depot’s profit grew 16% to $ 2.65 per share, including 9 cents in one-time costs related to the acquisition of HD Supply. Revenue grew 25% to $ 32.26 billion. Same-store sales increased 24.5%, with United States comps increasing 25%.
Stock market profits: Cadence, ZoomInfo
Cadence Design Systems and IBD Leaderboard stock ZoomInfo reported gains after closing on Monday.
Cadence returned to its 50-day line on Monday, amid a 4.65% drop. After Monday’s close, Cadence reported strong results in the fourth quarter. The company earned an adjusted value of 83 cents per share on sales of $ 760 million in the December quarter. Analysts forecast Cadence’s earnings of 74 cents per share on sales of $ 732 million.
The shares fell 2% on Tuesday morning.
ZoomInfo fell 6.25% on Monday, closing below an entry of 53.18 on a cup base. After Monday’s close, ZoomInfo reported strong fourth quarter results and better-than-expected sales guidance for the first quarter. The shares jumped 11% on Tuesday morning.
According to the Leaderboard comment, “ZoomInfo was added to the Leaderboard on February 1, when it released a short identifier. But because the identifier was so narrow, an alternative entry of 53.18 was also valid. The last base was the first stage, after the corporate software, the company went public in June. “
Nio Stock
Tesla’s rival Nio collapsed as much as 17% on Tuesday morning, adding to the 7.9% stumbling block on Monday. The shares reduced losses to about 4% in morning trading.
The stock broke on its 50-day line on Monday, an important sell signal. Meanwhile, the stock hit the 7% -8% loss cut rule from its 57.30 point of purchase on February 18.
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Tesla Stock
Tesla’s shares threatened to extend a losing streak to four sessions on Tuesday, falling more than 13% before cutting losses to 1.3%. The shares broke on Monday, through its 50-day moving average line, a critical support level.
On Sunday, Tesla stopped taking orders for the cheaper version of the Model Y Standard Range sport utility vehicle, just over a month after its launch and just a week after a price cut, according to its website.
On January 25, Tesla shares reached a record high of 900.40, after rising 93% from a 466 point of purchase in a glass with handle.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones’ main stock, Apple fell 3.8% on Tuesday. Apple’s stock is below its 10-week line, but a strong recovery above the level would be optimistic for the stock’s prospects.
On February 18, the stock triggered the sale rule with a 7% -8% loss cut when it fell more than 7% below its 138.89 point of purchase in a glass with a handle.
Meanwhile, Microsoft fell more than 1% on Tuesday morning. The stock is trying to find support at its 232.96 point of purchase, but is below it.
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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