Dow Jones futures, along with the S&P 500 and Nasdaq 100 futures, were up on Monday, with Treasury yields falling from recent highs. Technology stocks fell sharply on Monday, with Apple falling 4%, while Tesla’s shares plunged nearly 6%. Stitch Fix, a former hot stock, plunged more than 20% in the night’s trades.
X
On Monday, the Dow Jones Industrial Average advanced 1%, or 306 points. The blue-chip index hit a record high before cutting earnings. The S&P 500 fell 0.5%, while the Nasdaq’s high-tech compound fell 2.4%.
Among Dow Jones leaders, Apple (AAPL) sold 4.2% on Monday, while Microsoft (MSFT) fell 1.8% in today’s stock market. On the positive side, Disney (DIS) increased 6.3%, while Visa (V) is in the purchase range above a new point of purchase.
Tesla (TSLA) extended a losing streak to five sessions on Monday, with a 5.8% dip. After Monday closed, Point correction (SFIX) reported mixed Q2-fiscal results.
Among the main actions to be observed, Alphabet (GOOGL), Polaris (PII) and Westlake Chemical (WLK) are holding up well in the current stock market correction.
Microsoft, Polaris and Tesla are shares of the IBD Leaderboard. Alphabet was featured in this week’s Stocks Near A Buy Zone column. Westlake was the IBD day stock on Monday.
Dow Jones Futures: Falling Yields
After the stock market closed on Monday, Dow Jones futures rose 0.6%, while S&P 500 futures gained 0.8% against fair value. Nasdaq 100 futures advanced 1.15% against fair value. Remember that trading in Dow Jones futures and elsewhere does not necessarily translate into real trading in the next regular stock market session.
Overview of the US stock market today |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain / Loss | % Change |
| Dow Jones | (0DJIA) | 31801.91 | +305.61 | +0.97 |
| S&P 500 | (0S and P5) | 3821.22 | -20.72 | -0.54 |
| Nasdaq | (0NDQC) | 12609.16 | -310.99 | -2.41 |
| Russell 2000 | (IWM) | 218.74 | +1.03 | +0.47 |
| IBD 50 | (FFTY) | 42.78 | -0.75 | -1.72 |
Last updated: 4:44 PM ET 3/8/2021 |
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The 10-year Treasury yield advanced to 1.606% on Monday, before closing at 1.596%. The 10-year yield was traded at around 1.573% in night trade.
On Saturday, the Senate approved the $ 1.9 trillion Biden stimulus plan. Majority leader in the House, Steny Hoyer, said the House plans to vote on Tuesday the version of the stimulus plan for the Senate. Then it will be up to President Joe Biden to sign.
Among the exchange-traded funds, the Innovator IBD 50 (FFTY) traded down 1.7% on Monday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) fell 2.8%. Meanwhile, the SPDR S&P 500 ETF (SPY) fell 0.5%.
Stock market correction
On March 4, the main stock indices were shaken by heavy sales, while the main growth stocks also plummeted. The Nasdaq fell below last week’s lows, closing at its lowest level since January 4 and staying negative for the year. The high-tech compound fell 1.3% in 2021, after rising 10% from January 1 to its record of February 16.
IBD’s market outlook was downgraded to “market correction” on March 4. During periods of strong stock market weakness, investors should invest lightly – or even 100% in cash – until the next day. Follow-throughs signal a new trend of high potential in the market and give the green light to start buying shares again.
Use downtime as a chance to take a mental break; however, do not disconnect. Be on the lookout for the next leaders to emerge. One of the best ways to identify the next major stock cycle during stock market corrections is to use the relative strength line. The RS line measures the performance of a share’s price against the S&P 500. If the stock is outperforming the broader market, the RS line tilts upwards. If a stock performs worse than the broad market, the line will point down.
Friday’s Big Picture commented: “After a morning faint knocked Nasdaq down to a 2.6% loss, buyers returned to the market in late morning trading and the main stock indices ended with bullish gains at the close. . ” Check out IBD’s Big Picture for more comments on the stock market.
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Bitcoin Price
Bitcoin traded near session highs on Monday night, reaching $ 54,000. Bitcoin’s price was traded around $ 53,700 a night, according to CoinDesk.
Bitcoin’s price reached an all-time high on February 21, reaching $ 58,332.
The Grayscale Bitcoin Trust (GBTC) ETF advanced 5.8% on Friday, finding support on its 50-day moving average line. The Bitcoin tracking ETF was up another 3.65% on Monday.
Dow Jones Shares: Disney, Visa
Within the Dow Jones Industrial Average, Disney shares were up more than 6% after California signaled that Disneyland and California Adventure could reopen on April 1.
The shares moved out of the buying zone, going from a buying point of 183.50 on a flat basis.
Visa shares are in the buying range, going from a 211.69 point purchase in a glass with handle after the February 23 break, according to analysis by the IBS MarketSmith chart. The 5% buying zone rises to 222.27.
The shares gained 2.3% on Monday and remain in the buy range.
Actions to watch: Alphabet, Polaris, Westlake
Alphabet, the leader of FANG’s shares, is holding up well in the face of the recent weakness in the stock market. The shares remain extended from a 1,843.93 point of purchase on a flat basis, and are about 2% away from a 2,145.24 entry in a tight three-week pattern.
The shares fell more than 4% on Monday, but remain above their recent lows.
Polaris surpassed a buying point of 129.10 on a flat basis on Friday with an increase of 5.7%. The shares are in the 5% buying zone, which reaches 135.56. Polaris shares rose 3.7% on Monday.
According to the IBD Stock Checkup, Polaris stock shows a solid 90 of a perfect 99 IBD Composite Rating. IBD Composite Rating helps investors easily measure the quality of a stock’s fundamental and technical metrics.
Monday’s IBD day stock, Westlake Chemical, released a 90.46 buy point amid a 4.1% advance on Monday. The shares ended in the 5% buying zone, which reaches 94.98.
Westlake was added to the IBD Leaderboard on Monday. According to the Leaderboard comment, “the most recent basis for the action is the second stage, and the relative strength line is reaching new highs with the stock breaking. Both are positive elements for the chart.”
Stock market profits: correction of points
After Monday’s close, Stitch Fix reported a loss of 20 cents per share, exceeding estimates. But sales did not meet consensus goals. The company posted revenue of $ 504.1 million, below analysts’ estimates for sales of $ 512.2 million.
Stitch Fix’s shares plunged more than 20% in Monday’s trading. The stock ended Monday below its 50-day line, about 40% of its 52-week high.
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Tesla Stock
Tesla’s shares extended a string of losses to five sessions on Monday, down 5.8%. The shares may be forming a new basis, but it is too early to identify a new entry.
On February 22, the electric car leader 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. The shares are about 37% below the historical record.
Dow Jones Leaders: Apple, Microsoft
Among the main shares of Dow Jones, Apple sold 4.2% on Monday. Apple’s stock remains below its 10-week line, but a strong recovery above the level would be optimistic for the stock’s prospects.
On February 18, Apple shares triggered the 7% -8% loss-of-sale rule when they fell more than 7% below its 138.89 point of purchase in a glass with a handle.
Meanwhile, Microsoft fell 1.8% on Monday. The stock remains below its 232.96 buying point and fell below its 50-day line.
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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