The Dow Jones Industrial Average fell more than 100 points on Tuesday, with Fed chief Jerome Powell saying the US economy “has improved a lot”. Treasury yields have declined from recent highs. The shares of EV giant Tesla have reversed downward, while chip giants Applied Materials and Nvidia are stocks to watch out for.
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Among Dow Jones leaders, Apple (AAPL) fell 0.6% Tuesday, while Microsoft (MSFT) rose 0.8% in today’s stock market. Boeing (BA) is back in the buying range after a recent disruption.
Tesla (TSLA) reversed the low on Tuesday morning after Monday’s 2.3% gain.
Among the main actions to be observed, chip leaders Applied Materials (AMAT), ASML (ASML), MKS Instruments (MKSI), Nvidia (NVDA) and Qorvo (QRVO) are showing leadership potential in the current high in the stock market.
About that, Alphabet (Google Wayfair (W) are in or near buying zones. Alphabet was featured in this week’s Stocks Near A Buy Zone column, while Wayfair was Monday’s IBD 50 Stocks To Watch choice.
Alphabet, Microsoft and Nvidia are shares of the IBD Leaderboard. MKS Instruments was the stock of IBD’s day on Tuesday.
Dow Jones today: treasury yields, Powell comments
The Dow Jones Industrial Average fell 0.3%, while the S&P 500 fell 0.1%. The composition of Nasdaq, with high technology, reduced losses to 0.1%, after reverting downwards in the morning trading.
Overview of the US stock market today |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain / Loss | % Change |
| Dow Jones | (0DJIA) | 32618.64 | -112.56 | -0.34 |
| S&P 500 | (0S and P5) | 3931.60 | -8.99 | -0.23 |
| Nasdaq | (0NDQC) | 13326.48 | -51.06 | -0.38 |
| Russell 2000 | (IWM) | 221.14 | -4.09 | -1.82 |
| IBD 50 | (FFTY) | 45.74 | -1.11 | -2.37 |
Last updated: 10:50 ET 3/23/2021 |
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On Tuesday, Fed Chairman Powell and Treasury Secretary Janet Yellen will make an appearance before the US House Financial Services Committee. In prepared comments, Powell said that the US economy is “much better” but that the recovery is “far from complete”. He commented that the Fed “will continue to provide the economy with the support it needs for as long as necessary.”
The 10-year Treasury yield fell below 1.7% on Monday, after Thursday’s increase to 1.757%. At the beginning of Tuesday, the 10-year Treasury’s yield declined further to 1.661%.
Among the exchange-traded funds, Innovator IBD 50 (FFTY) traded a 0.6% drop on Tuesday. The Nasdaq 100 ETF Invesco QQQ Trust (QQQ) lost 0.4% on Tuesday. Meanwhile, the SPDR S&P 500 ETF (SPY) fell by less than 0.1%.
Stock market rally: Nasdaq tests key level again
Amid the current stock market recovery, the Dow Jones Industrial Average and S&P 500 indices broke two-day losing streak on Monday, with modest gains.
Meanwhile, the high-tech Nasdaq is again trying to resume its 50-day moving average line, but fell short on Monday. Last Thursday, the Nasdaq compound gave up on that key level. Nasdaq will need to overcome this important obstacle to maintain its upward trajectory. The 50-day line is a critical level of potential resistance. If Nasdaq eliminates it decisively, new highs may be on the horizon.
IBD’s market outlook was raised to “confirmed upward trend” on March 10, with the Dow Jones Industrial Average setting new highs.
Monday’s Big Picture commented: “Nasdaq rose 1.2%, a good follow-up after Friday’s price hike reversal. But a late faint cost the index nearly half of the day’s gain, a sign of that the confirmed upward trend in the stock market remains delicate. the compound closed just below its 50-day moving average after peeking above it earlier in the day. “
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Dow Jones shares: Boeing
Within the Dow Jones Industrial Average, Boeing is back in the buying range above a buying point of 244.18 on a canopy basis, according to the analysis of the IBD MarketSmith chart.
The shares fell 1% on Tuesday.
Chip stock to watch: applied materials, Nvidia
Chip stocks remain some of the best names in technology at the current high in the stock market. VanEck Vectors Semiconductor ETF (SMH) was a new addition to the IBD SwingTrader on Monday amid a 2.3% increase. The ETF fell 0.9% on Tuesday morning.
Applied Materials continues to recover from its 50-day support level. The shares fell 0.6% on Tuesday and are only 4% of the new highs.
ASML jumped back above its 50-day line on Monday, but fell about 1.4% on Tuesday. The shares are in the sixth week of a potential basis. The minimum length of a cup base is six weeks, so a new point of purchase may appear at the end of the week.
Qorvo found support on its 50-day line on Friday and continued its recovery on Monday with a 1.9% increase. The stock is closing at a buying point of 191.93, while an early entry exists at 185.96. Early Tuesday, Qorvo’s shares were down 0.9%.
MKS Instruments’ recent IBD stock ended just below its 177.46 point of purchase on a double bottom amid Monday’s 2.4% gain. The 5% buying zone rises to 186.33. As of Tuesday morning, the shares fell 1.3%.
According to the IBD Stock Checkup, MKSI’s stock has a perfect rating of 99 IBD Composite. IBD Composite Rating helps investors easily measure the quality of a stock’s fundamental and technical metrics.
Chip giant Nvidia rose 0.5% on Tuesday. The manufacturer of the graphics chip may be forming the right side of a new base, but it is a little early for a conventional point of purchase. A strong day to recover the 50 day line would be optimistic for the prospects for the action.
Stocks near shopping areas: alphabet, Wayfair
IBD Leaderboard Alphabet shares completed a fixed five-week base on Friday, creating a new point of purchase at 2,145.24, according to the analysis of the IBD MarketSmith chart. The shares are about 6% below the new entry. GOOGL’s shares rose 0.3% on Tuesday.
According to the Leaderboard comment, “Alphabet has made better progress than other great coaches recently. Support on the 21-day line is defining the current chart action. The last base was the second stage.”
Monday’s IBD 50 Stocks to Watch choice, Wayfair, is trying to exceed a 343.09 point of purchase in a cup with a handle. The shares rose 0.3% on Tuesday and are in the buying range.
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Tesla Stock
Tesla’s shares reverted from initial gains to fall Tuesday morning. The shares jumped 2.3% on Monday after Cathie Wood’s ARK Invest announced its new price target of 3,000 by 2025.
Tesla’s stock ended Monday with about 26% off its 52-week high. Tesla’s shares may be forming a new basis, but it is too early for a new ideal risk buying point.
On February 22, Tesla broke its 10-week moving average mainline, 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.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones’ top stocks, Apple fell 0.6% on Tuesday, threatening to return part of the 2.8% gain on Monday. Apple’s shares are recovering from their 40-week long-term line and may soon try to recover their 10-week line.
On February 18, Apple’s stock triggered the 7% -8% loss-of-sale rule when it fell more than 7% below its 138.89 point of purchase in a glass with handle.
Meanwhile, software giant Microsoft rose 0.8% on Tuesday, rising further above its 50-day key line. The stock is again above its 232.96 point of purchase and approaching a 246.23 point of purchase on a new flat basis.
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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