The Dow Jones Industrial Average rose more than 200 points on Thursday, while technology stocks were sold while Treasury yields skyrocketed. Apple and Tesla shares plummeted in the morning trading, while Dow Jones leader Nike will report earnings after the close.
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Among Dow Jones leaders, Apple (AAPL) fell more than 2% Thursday, while Microsoft (MSFT) fell almost 2% in today’s stock market. Nike (NKE) is approaching a new point of purchase ahead of today’s earnings results.
Tesla (TSLA) slipped more than 3% in Thursday morning trading. Dollar General (DG) and Five below (FIVE) reported earnings results before the stock market opened on Thursday.
Among the main actions to be observed, Applied Materials (AMAT) and MKS Instruments (MKSI) are in or near buying zones at the current high in the stock market.
Microsoft is a stock of the IBD Leaderboard. Applied Materials is a recent addition to the IBD SwingTrader, while MKS Instruments was Tuesday’s IBD stock.
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The Dow Jones Industrial Average rose 0.4%, while the S&P 500 fell 0.4%. The high-tech Nasdaq compound fell 1.4% in midday trading, even after cutting losses.
Overview of the US stock market today |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain / Loss | % Change |
| Dow Jones | (0DJIA) | 33125.96 | +110.59 | +0.33 |
| S&P 500 | (0S and P5) | 3956.62 | -17.50 | -0.44 |
| Nasdaq | (0NDQC) | 13340.48 | -184.72 | -1.37 |
| Russell 2000 | (IWM) | 231.58 | -0.73 | -0.31 |
| IBD 50 | (FFTY) | 47.47 | -0.16 | -0.34 |
Last updated: 10:42 ET 3/18/2021 |
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On Wednesday, the Federal Reserve indicated that it was not likely to raise rates until 2024, despite the strengthening of the US economy.
New economic projections have shown that the Fed’s policymakers will remain firm, even with inflation beyond the 2% target this year and remaining at 2% or more over the next two years.
The 10-year Treasury yield rose 1.754% on Thursday morning, reaching a 14-month high.
Among the exchange-traded funds, the Innovator IBD 50 (FFTY) was down 0.9% on Thursday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) fell 1.85%. Meanwhile, the SPDR S&P 500 ETF (SPY) fell 0.7%.
Stock market rally: Nasdaq faces key test
In the midst of a further stock market recovery, the Dow Jones Industrial Average and S&P 500 indices were higher on Wednesday.
Meanwhile, the high-tech Nasdaq is doing well in its 50-day moving average line and about 5% below its historic highs. 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, then 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.
Wednesday’s Big Picture commented, “The stock market rebounded from lows Wednesday after Wall Street got exactly what it wanted from the Federal Reserve: another dovish policy statement.”
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Dow Jones shares: Nike earnings
Within the Dow Jones Industrial Average, Nike shares are approaching 148.05 points of purchase on a flat basis, according to analysis by the IBD MarketSmith chart. The shares are about 2% away from their point of purchase amid Thursday’s 0.1% gain.
At the end of Thursday, Nike will present its quarterly earnings results. The company is expected to earn 76 cents per share and $ 11 billion in revenue.
Actions to be observed: Applied Materials, MKS Instruments
The IBD SwingTrader Applied Materials stock is close to completing a new base, which would offer a buying point of 124.60. Meanwhile, stocks are recovering from their 50-day line, after testing that level on March 8. The shares fell about 2% on Thursday.
According to the IBD Stock Checkup, AMAT’s stock has a perfect rating of 99 IBD Composite. IBD Composite Rating helps investors to easily measure the quality of a stock’s technical and fundamental metrics.
Tuesday’s IBD day stock, MKS Instruments, is in the buying range, rising from 177.46 buying points on a double bottom, according to the analysis of the IBD MarketSmith chart. The 5% buying zone rises to 186.33.
The stock fell about 2% on Thursday morning, and is just above the entry.
Stock market gains: general dollar, down five
Earlier on Thursday, Dollar General did not meet its profit targets and offered weak guidance for the entire year. Dollar General’s shares fell 5% on Thursday and are more than 20% below its 52-week high.
Five Below reported better-than-expected fourth quarter earnings and guidance for the first quarter on Wednesday. The shares reduced earnings to about 1% in morning trading.
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Tesla Stock
Tesla’s shares plunged more than 3% on Thursday morning, threatening to give up most of the 3.7% gain on Wednesday. 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 25% below the historical record.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones’ main stock, Apple fell about 2% on Thursday, at a rate that would increase the fall of 0.65% on Wednesday. Apple’s shares are recovering from its 40-week long-term line and may soon try to recover its 10-week line.
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’s IBD Leaderboard shares fell nearly 2% on Thursday, looking to extend the 0.3% loss on Wednesday. The shares are holding just above their 232.96 point of purchase and are in the buy range.
According to the Leaderboard comment, “Microsoft is maintaining support at its 50-day moving average and is above a purchase point of 232.96 and an earlier entry of 228.22.”
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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