Dow Jones futures rose slightly on Tuesday, along with the S&P 500 and Nasdaq futures. The stock market recovery ended up narrowly mixed on Tuesday, after the Nasdaq closed well after intraday highs. Plug Power (PLUG) and important night movers of the Crowdstrike action.
X
Microsoft shares, MKS Instruments (MKSI), Applied Materials (AMAT) and Apple (AAPL) chip makers for iPhone Qorvo (QRVO) and Skyworks Solutions (SWKS) all points of purchase shone at least during the day.
After the closing, Plug Power said it would have to restate the financial statements for 2018 and 2019, as well as the quarterly statements for 2019 and 2020. The fuel cell company cited accounting errors related to non-monetary items, including some costs. But he said there was no misconduct. PLUG stock fell 10% overnight. The shares fell 8.1% on Tuesday, hitting resistance on its 21-day line.
Crowdstrike (CRWD), Coupa Software (BANG), Smart sheet (SMAR) and Lennar (LEN) posted gains on Tuesday, with the Chinese e-commerce giant Pinduoduo (PDD) due on Wednesday.
Chip Equipment Manufacturer MKS Instruments broke out after a point of purchase on Tuesday. The stock of chip gear giant AMAT had an early entry, along with wireless chip makers Qorvo (QRVO) and Skyworks Solutions (SWKS).
Microsoft (MSFT) increased, sending additional buy signals. Father of Google Alphabet (GOOGL) has also risen slightly and is potentially actionable. Apple stock and the Facebook (FB) has increased, but may need more repair time.
Amazon.com (AMZN) closed close to lows, remaining around its 200-day line. Tesla (TSLA), reached resistance and retreated, still well below its 50-day line.
All of these stocks rose, with some closing close to session lows, with Nasdaq losing strength.
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Main earnings
The crowdstrike earnings and revenues were better than expected, while the cybersecurity leader also led the way up. CRWD’s shares jumped 6% in extended trade. The stock hit resistance on its 21-day line on Tuesday and reversed downward to a 2.1% loss.
Coupon earnings and sales also outperformed views. COUP’s shares rose 2% overnight. The shares fell 3.5% on Tuesday.
Smartsheet’s earnings and revenues exceed forecast. SMAR’s shares fell 1% in extended trade. The shares rose 1.4% to 68.71, falling back at the main levels during the day.
PDD shares rose 1.1% to 160.89 on Tuesday.
CRWD shares, Coupa shares, Smartsheet, along with Pinduoduo, are former leaders who sold strongly in the recent technology liquidation. They all closed below their 50-day moving averages, with COUP inventory below their 200-day line.
Lennar’s earnings also exceeded analysts’ estimates. LEN’s shares rose 1% in the night trade. The shares fell 1.5% to 88.71. Lennar’s shares have been in consolidation for several weeks alongside an earlier base. A move above last week’s high of 92.85 – the top of an almost handle – may offer early entry.
Google and Microsoft shares are on the IBD Leaderboard. The shares of AMAT and Google are in SwingTrader and Big Cap 20. The shares of MSFT are long-term leaders of IBD. The shares of Google, SWKS and TSLA are in the IBD 50. The shares of MSKI were the IBD shares of Tuesday.
Fed Meeting In Focus
The Federal Reserve will end its two-day policy meeting on Wednesday with an announcement at 2 pm Eastern Time. Investors will seek clarification from the central bank and the Fed’s head, Jerome Powell, regarding inflation and the increase in Treasury yields, which have hit growing stocks. Will the Fed approve or signal a move toward reviving “Operation Twist” to reduce long-term Treasury yields? While the Fed has said it is far from restricting bond purchases, will policymakers signal optimism about the economic outlook, worrying investors?
Dow Jones Futures Today
Dow Jones futures were up 0.1% against fair value. S&P 500 futures were up 0.2%. Nasdaq 100 futures were up 0.2%.
Keep in mind that overnight action on Dow futures and elsewhere does not necessarily translate into real trading in the next regular stock market session.
Join IBD experts and special guest David Ryan as they analyze actionable stocks at the stock market’s high on IBD Live.
Coronavirus News
Coronavirus cases worldwide reached 121.16 million. Deaths from Covid-19 reached 2.67 million.
Coronavirus cases in the US reached 30.18 million, with deaths above 548,000.
Modern (MRNA) began administering the coronavirus vaccine to children aged six months to less than 12 years in a phase 2/3 study. Modern and Pfizer (PFE) are already testing their vaccines on older children.
Stock market rally
Overview of the US stock market today |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain / Loss | % Change |
| Dow Jones | (0DJIA) | 32824.90 | -128.56 | -0.39 |
| S&P 500 | (0S and P5) | 3962.64 | -6.30 | -0.16 |
| Nasdaq | (0NDQC) | 13471.57 | +11.86 | +0.09 |
| Russell 2000 | (IWM) | 230.44 | -3.98 | -1.70 |
| IBD 50 | (FFTY) | 47.21 | -0.25 | -0.53 |
Last updated: 16h06 ET 16/03/2021 |
||||
The stock market boom closed with minimal changes, but it was a disappointing day for Nasdaq and growing names.
The Dow Jones Industrial Average fell 0.4% in Tuesday’s stock market trading. The S&P 500 index fell 0.1%. The Nasdaq compound rose 0.1%, after rising to 1.2% during the day and remaining briefly negative. The low-capitalized Russell 2000 sank 1.7%.
The 10-year Treasury yield rose 1 basis point to 1.62% after falling intraday to 1.585%.
The financial sector, airlines and commodities have all retreated, while growth names have faded and blended.
Among the best ETFs, Innovator IBD 50 ETF (FFTY) lost 0.5%, while Innovator IBD Breakout Opportunities ETF (BOUT) sank 0.9%. The iShares Expanded Tech-Software Sector (IGV) ETF fell 0.5%, with MSFT’s shares as its largest share. VanEck Vectors Semiconductor ETF (SMH) gained 1.1%, with the stock of Qorvo and SWKS both notable components.
Reflecting more speculative story stocks, Ark Innovation ETF fell 1.7% and Ark Genomics ETF 2.2%. Tesla’s shares are Ark Investments’ main ETF holdings.
Tech Titans
Microsoft shares rose 1.2% to 237.71, rebounding from its 21-day exponential moving average and 10-week lines once again. The shares are still in the range of 232.96 points of purchase, according to MarketSmith’s analysis. MSFT’s shares are on track to have a stable base later this week, with an entry of 246.23.
Google’s shares advanced 1.4% to 2,083.89, again recovering from its 21-day line. The shares reached 2,113.68 intraday, just below the very recent highs. Investors can make an early entry at current levels or above Tuesday’s highs. The official buying point is 2,145.24 out of a tight three-week pattern – or a flat base after this week.
Apple’s shares rose 1.3% to 125.57, above its 21-day line and breaking a bearish trend. But the iPhone giant is still under the 50 days that are now falling.
Facebook’s shares rose 2% to 279.28, continuing a recovery of its 10, 21, 50 and 200 day lines. FB’s shares reached a trend line starting with the all-time high of August 26, 304.67. Investors may buy Facebook if it stays above Tuesday’s high, but they may want to wait for the stock to peak at 286.79 on January 28.
Amazon shares were up 0.3%, but found resistance in its 200 days.
Tesla’s shares fell 4.4% to 676.88, reaching resistance in its 21-day line. It is still significantly below its 50-day line and its peak on January 25, 900.40. This may just be a break for TSLA shares, which jumped 16% last week. But maybe not.
While TSLA shares are struggling to recover, Volkswagen (VWAGY) has grown by announcing major EV targets in 2021 with major investments in batteries. VWAGY’s shares jumped 10% on Tuesday to its best level since 2009. The shares have risen 57% so far in 2021.
Token stock in shopping zones
MKSI’s shares jumped 3.4% to 177.91, closing above a double-bottom buying point of 177.46, after reaching 182.14 intraday.
AMAT’s shares rose 3.15% to 118.50, rebounding from its 21-day line and breaking a bearish downtrend. It is 7% above its 10-week line, still within the range.
Qorvo’s shares rose 1.3% to 180.54, close to the day’s low, after reaching 185.76 during the day. The stock closed above the downtrend and is just 3.1% above its 10-week average. But investors may want to wait for Qorvo’s stock to return to its March 2 high of 182.75. In addition, chip maker 5G has an official consolidation buying point of 191.92.
SWKS shares rose 1.3% to 181.04, closing close to session lows. But stocks broke the downward trend and continued to recover over the 10-week line, just 3.6% above that key level. The wireless chip maker has done well in selling technology, without losing sight of its 50-day / 10-week lines.
Bullish stock market analysis
Nasdaq moved a little further from its 50-day line, although closing well after intraday highs. More technology stocks, especially chips, are establishing themselves again.
But highly valued or speculative growth names often have more work to do. This includes shares of Tesla, Plug Power, Crowdstrike and others that have recovered from recent casualties, as well as names like Zoom Video (ZM) that didn’t jump much. In general, investors want to focus on stocks above their 21- and 50-day averages.
Meanwhile, the Dow Jones and Russell 2000 fell, but after long winning streak.
Many moves to reopen the economy, including travel, energy and mining, suffered retraction on Tuesday. But in general, these sectors are still doing well.
Ideally, the rise in the stock market will show broad leadership in a range of growth sectors and the real economy. But it may be that the market returns to the technologies, or that the technologies falter once again.
Investors should take advantage of the resumption of the upward trend in the market, with many quality stocks leaving or offering early entries. In this broad but uncertain recovery of the stock market, diversifying your portfolio is especially important. Buy leading stocks from leading sectors, as always, but make sure there is some variety. This will help you avoid major portfolio losses, while keeping you in line with a variety of sectors.
Read The Big Picture every day to stay in sync with the direction of the market and leading stocks and sectors.
Follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.
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