The Dow Jones futures, along with the S&P 500 and Nasdaq 100 futures, changed little on Monday night after the technology stocks were quickly sold. Bitcoin plummeted from historic highs, while Tesla’s shares plunged at a key support level.
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On Monday, Nasdaq’s heavy compound sold 2.5%, its worst day since January 27. The S&P 500 fell 0.8%, while the Dow Jones Industrial Average rose 0.1%.
Among Dow Jones leaders, Apple (AAPL) fell 3%, while Microsoft (MSFT) decreased by 2.7%. Apple’s stock fell further below its 10-week line, while Microsoft is testing a recent point of purchase. Disney (DIS) is back in the buying range after Monday’s strong gain.
Tesla (TSLA) fell 8.55% on Monday, breaking its 50-day support level.
Monday afternoon, Cadence Design Systems (CDNS), Palo Alto Networks (PANW) and ZoomInfo (ZI) reported earnings results.
Among the main stocks in or near buying zones, hot IPO stocks Shoals Technologies (SHLS) is trying to overcome a new point of purchase, while Commercial counter (TTD) continues to form a new base.
Apple, Microsoft, Tesla and ZoomInfo are shares of the IBD Leaderboard. Shoals Technologies was the stock of IBD’s day on Thursday. Trade Desk was featured in this week’s Stocks Near A Buy Zone column.
Dow Jones Futures Today
After the stock market closed on Monday, the Dow Jones futures, along with the S&P 500 and Nasdaq 100 futures, have changed little from 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.
Among the exchange-traded funds, the Innovator IBD 50 (FFTY) fell 2.9% on Monday. The Invesco QQQ Trust (QQQ) ETF linked to the Nasdaq 100 fell 2.6%. Meanwhile, the SPDR S&P 500 ETF (SPY) lost 0.8%.
Overview of the US stock market today |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain / Loss | % Change |
| Dow Jones | (0DJIA) | 31523.40 | +29.08 | +0.09 |
| S&P 500 | (0S and P5) | 3876.51 | -30.20 | -0.77 |
| Nasdaq | (0NDQC) | 13533.05 | -341.41 | -2.46 |
| Russell 2000 | (IWM) | 223.73 | -1.46 | -0.65 |
| IBD 50 | (FFTY) | 47.48 | -1.42 | -2.90 |
Last updated: 4:28 PM ET 2/22/2021 |
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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.
Friday’s Big Picture commented: “Unable to find direction for most of the day, the stock market on Friday closed mixed. But it was not a day for optimists because small cap stocks and the main actions performed much better. “
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
Bitcoin’s price reached $ 57,000 on Saturday and $ 58,000 on Sunday, before briefly dropping below $ 48,000 on Monday morning. Bitcoin has recovered, trading around $ 54,000 in night trading, according to CoinDesk.
The Grayscale Bitcoin Trust (GBTC) ETF fell more than 4% on Monday, falling from record levels.
Dow Jones Shares: Disney
Disney’s Dow Jones shares are back in the buying range, rising from 183.50 purchase points 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.
Actions in or near shopping areas: shoals, commercial counters
Friday’s IBD stock, Shoals Technologies, is trying to exceed a 41.86 point of purchase on a narrow IPO basis, according to analysis by the IBS MarketSmith chart. The stock briefly overcame the buying point before reversing the drop of more than 1%. The stock closed about 5% below the entry.
Shoals is an IBD IPO leader. The company supplies a range of equipment needed to operate solar energy systems, according to Shoals’ IPO document. In addition, it provides the necessary components to transport electrical currents from solar panels to solar inverters and, finally, to the electrical grid.
The Trade Desk is trading at about 13% of a 972.90 point of purchase on a hearts basis amid a drop of more than 6% on Monday.
On Friday, the shares jumped nearly 7% in the wake of the company’s strong fourth-quarter results. Profit and sales grew 149% and 48%, respectively, compared to the previous year.
According to the IBD Stock Checkup, the Trade Desk stock shows a strong 98 out of a perfect 99 composite IBD rating. IBD Composite Rating helps investors easily measure the quality of a stock’s fundamental and technical metrics.
Trade Desk ranks 10th in the IBD Big Cap 20.
Stock market profits: Cadence, Palo Alto, ZoomInfo
Cadence Design Systems, Palo Alto Networks and IBD Leaderboard stock ZoomInfo reported profits 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 rose 5% in the early morning trading.
Cybersecurity leader Palo Alto Networks reported better-than-expected fiscal gains and sales results in the second quarter, but the company’s range of earnings outlook fell short of consensus. Palo Alto’s shares reduced losses to about 2% in late-night trading.
Shares closed on Monday in the buying range, moving from 375.10 points to purchase on a flat basis.
ZoomInfo fell 6.25% on Monday, closing below an entry of 53.18 on a cup base. After closing on Monday, ZoomInfo jumped 10% with strong fourth quarter results and better than expected first quarter sales guidance.
According to the Leaderboard comment, “ZoomInfo broke out because of a small trade on February 1, but it headed an alternative entry that puts stocks in the buying range. Stocks are becoming more volatile, a risk.”
IBD Live: a new tool for daily stock market analysis
Tesla stock break support
IBD Leaderboard Tesla’s shares fell 8.55% on Monday, breaking its 50-day moving average. Shares are below the critical support level for the first time since the November 18 breach, above 466 purchase points.
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.
The January 8 IBD day stock column signaled that Tesla was showing several signs of a climax amid a strong vertical run in recent months.
On January 25, Tesla’s shares reached a record high of 900.40. Shares are about 84% above 466 buying points in a cup with handle amid Monday’s action.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones’ top stocks, Apple fell 3% on Monday as it fell further below its 10-week line.
On Thursday, 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 handle.
Meanwhile, Microsoft fell 2.7% on Monday. The software giant’s shares are in the 5% buying zone from a 232.96 buying point to 244.61
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on growth stocks and Dow Jones futures.
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