The Dow Jones Industrial Average rose to a record high, even as other indices struggled amid a 10-year Treasury yield. Apple (AAPL) and Microsoft (MSFT) were the biggest laggards of the blue chip as the technology was attacked by the bears. In contrast, the stock of the Leader Board Wells Fargo (WFC) charged more as financial stocks rebounded.
Discount Retailer Five below (Five and Dollar General (DG) fell after posting earnings, while the IBD 50 member Williams-Sonoma (WSM) led the action by passing the purchase points.
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The main yield on 10-year Treasury bonds soared above the 1.7% mark. The increase in yields has hampered growth stocks, with technology problems in particular.
It comes after the Federal Reserve announced on Wednesday that it is keeping interest rates stable amid a strengthening economy. It also increased its inflation in 2021 to 2.4%.
Nasdaq, S&P Slip As Tech Struggles
The Nasdaq was hit lower by the bears, falling more than 2%. Okta (OKTA) was the biggest latecomer, giving up more than 6%.
The S&P 500 did better, but it still fell about 1%. Enphase Energy (ENPH) was the biggest laggard, falling almost 8%.
Overview of the US stock market today |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain / Loss | % Change |
| Dow Jones | (0DJIA) | 33012.38 | -2.99 | -0.01 |
| S&P 500 | (0S and P5) | 3935.12 | -39.00 | -0.98 |
| Nasdaq | (0NDQC) | 13203.68 | -321.52 | -2.38 |
| Russell 2000 | (IWM) | 228.34 | -3.97 | -1.71 |
| IBD 50 | (FFTY) | 46.80 | -0.83 | -1.74 |
Last updated: 14h58 ET 18/03/2021 |
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The volume was higher than at the same time on Tuesday. Trades were up about 4% on the Nasdaq and jumped 14% on the NYSE.
The S&P sectors were mixed, with more losers than winners. The financial sector led, while energy and technology were the biggest laggards.
The small print was damaged by the bears, with Russell 2000 falling by almost 2%.
Growth stocks were also struggling. The Innovator IBD 50 ETF (FFTY) fell by almost 2%.
Apple Stock and Microsoft fall as Dow Jones recovers
In contrast, the Dow Jones Industrial Average rose to record highs, although it fell back close to breakeven.
Apple’s stock continued to struggle amid the technology downturn. It fell almost 3% and fell again towards the 200-day moving average. Previously, it had found support in the main technical benchmark.
AAPL’s shares were isolated below their 10-week moving average for five weeks. Apple shares previously triggered the 7% -8% loss-of-sale rule after falling more than 7% below a 138.89 buying point for a glass with handle.
Microsoft’s shares were also among the biggest laggards, falling below a buying point of 232.96, after giving up more than 2%. He is now looking for support on his 50-day moving average.
Microsoft is a share of the IBD Leaderboard, and has gained 5% in the year so far.
Underlining the strength of bank stocks, JPMorgan Chase (JPM) and Goldman Sachs (GS) were among the main shares of Dow Jones.
Wells Fargo Stock Charges
The Wells Fargo leaderboard stock was among the financial stocks that benefited from the increase in yields.
Wells Fargo is out of reach after a break from a short consolidation. It is fast approaching a 20% gain at the 35.20 point of purchase, where some profits can be made.
Wells Fargo’s shares received a boost after it was reported that Federal Reserve officials “signaled in particular” that they accepted Wells Fargo’s proposal to repair its risk management and governance practices.
However, the stock’s IBD Composite Rating of 46 reflects how much it has been defeated. The Fed imposed limits on the size of Wells Fargo in 2018 due to a scandal of fake accounts.
Other bank stocks also rose, with Bank of America (BAC) swelling of almost 4% and US Bancorp (USB) increasing by almost 4%.
Discount for retailers
Dollar General also fell after losing profit estimates, although revenue was above view. Comparable store sales were also better than expected.
Dollar General’s shares fell and still gave up more than 5%, despite reducing some losses. Its 50-day line recently sank below the 200-day moving average.
Five Below was looking for support on its 50-day line after falling more than 3%. It fell, despite surpassing earnings and revenue views.
IBD 50 Stock Leads Breakouts
Williams-Sonoma was by far the best IBD 50 performance on Thursday, with an increase of more than 19%. The catalyst was a strong earnings report.
It went from a 151.26 point of purchase on a canopy basis, MarketSmith’s analysis shows. He made his move in great volume.
Williams-Sonoma shares have a Compound Rating of 98, with earnings performance being their greatest strength.
The strong results of the WSM may bode well for Warren Buffett’s actions HR (RH), who reports next week.
Meanwhile, Brazilian mining giant OK (VALE) spent a cup with a 17.78 handle base purchase point, although it retreated below its purchase zone. It has a composite rating of 98. Commodity prices have rebounded as the global economy has started to reopen
Follow Michael Larkin on Twitter at @IBD_MLarkin for more information on growth and analysis actions.
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