The Dow Jones Industrial Average traded higher in today’s stock market. In late afternoon trade, the main indices rose sharply from the session’s lows, after the Federal Reserve defied expectations and decided to maintain current interest rates until 2024.
X
About an hour before closing, the Russell 2000 gained 0.5%. Meanwhile, the Nasdaq compound gained 0.6%, after falling to 1.4%. The S&P 500 saw its previous losses revert to a gain of 0.4%, while the Dow Jones industrials rose 0.6%. The volume was trading lower on the Nasdaq and NYSE compared to the same time as Tuesday.
Stock market today
Investors digested a surprise Federal Reserve decision on Wednesday to keep the date of its first rate hike set for 2024. Many on Wall Street expected the Fed to shift the next rate hike to an earlier date, as the economy of the USA seems about to shut down.
Meanwhile, the 10-year Treasury yield rose by 7 intraday base points to 1.69%, reaching a new record for the Covid era. It was traded at 1.66% after the Fed’s announcement.
Technology stocks reduced losses with the Nasdaq by recovering dramatically from the day’s casualties. Recent divergences in the main indices occurred after the increase in long-term interest rates made riskier assets less attractive. On the other hand, strong growth has boosted profit prospects among cyclical sectors, including oil, machinery, industrial, commodities and finance.
On Wednesday, inventories of solar and alternative energy, software and drugstores led the handicap among the 197 industrial groups at IBD. Those who avoided the decline were mainly defensive plays, such as food, drink and gold diggers.
As for growth stocks, the Innovator IBD 50 ETF (FFTY) had a slight gain of around 0.2%. The growth-focused index last week regained support on the 50-day line after falling briefly below it. Actions leading on the positive side were Green Brick Partners (GRBK) and Artisan Partners Asset Management (APAM), with gains of more than 3% each.
Artisan Partners is approaching the point of purchase for consolidation. The shares remain 4% away from the appropriate purchase point of 55.35. The stock has a strong 96 IBD Composite Rating, along with year-on-year accelerating gains and sales growth in the past quarters.
Green Brick Partners is also approaching a consolidation buying point of 25.15. Shares in the Texas-based company recently rebounded the 50-day line. The stock has a strong EPS rating of 97.
Dow Jones Today
As for the Dow Jones, Dow Inc. (DOW), Caterpillar (CAT) and Boeing (BA) led the increase with gains of more than 2% each. On the negative side, the shares of Walgreens (WBA) and Apple (AAPL) held losses of 1% or more each.
Apple’s shares fell and fell 2%, but erased almost all losses. Stocks have been rising throughout this week, as stocks build a new consolidation with a buying point of 145.19, according to analysis by the MarketSmith chart. But investors should note that he has been stuck below the 10-week moving average for five weeks.
The shares are below the 10-week line since liquidation in February. Apple shares triggered the 7% -8% loss cut rule when they fell more than 7% below its 138.89 point of purchase in a glass with handle. But last week, stocks found support near the 40-week line.
The Walgreens Boots Alliance fell 3%. The stock reduced previous losses to 1.5% in the afternoon session. On Tuesday, stocks burst briefly, surpassing a 55.59 point buyout of a cup with handle, before reversing downward. Walgreens’ stock is now about 3% below its initial value.
The company is expected to release its fiscal results for the second quarter of 2021 on March 31, before the market opens.
Somewhere else, Microsoft (MSFT) lost 0.5%, but remained within the purchase zone of a 232.96 point purchase. Microsoft shares recently tested support at the 10-week moving average, according to analysis by the MarketSmith chart. Microsoft is an IBD Leaderboard and IBD Long Term Leader actions.
Finally, McDonalds (MCD) approached a 232.01 point-of-purchase point on Wednesday. The shares remain just 3% of the proper launch. The shares gained 1.8% after they recovered their 50 and 200 day lines.
Deutsche Bank raised its rating on the fast-food giant to buy from waiting with a price target of 244, citing the potential for growth in market share in international markets.
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