The Dow Jones Industrial Average fell nearly 400 points on Tuesday before reducing its loss, as Fed chief Jerome Powell testified to Congress.
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The Nasdaq fell 2.2%, the S&P 500 fell 0.9% and the Dow Jones industrials gave up 0.5% on the stock market today. Small capitalizations monitored by Russell 2000 plunged 2.3%. Volume increased on both major exchanges from the same time on Tuesday.
Earlier Tuesday, Powell reiterated that the Fed is “committed to using our full range of tools to support the economy and help ensure that the recovery from this difficult period is as robust as possible,” in a speech to the Bank Senate Committee.
He commented that inflation and employment remain well below the Fed’s targets, suggesting that moderate monetary policy is likely to remain in place.
Technology stocks propelled Nasdaq to a 43.6% gain in 2020, its fifth best year ever. The S&P 500 was up 16.3% and the Dow was up 7.2% last year. Read The Big Picture for a detailed daily market analysis.
Overview of the US stock market today |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain / Loss | % Change |
| Dow Jones | (0DJIA) | 31402.65 | -119.04 | -0.38 |
| S&P 500 | (0S and P5) | 3849.00 | -27.50 | -0.71 |
| Nasdaq | (0NDQC) | 13257.37 | -275.68 | -2.04 |
| Russell 2000 | (IWM) | 218.82 | -4.91 | -2.19 |
| IBD 50 | (FFTY) | 45.44 | -2.04 | -4.30 |
Last updated: 13h16 ET 02/23/2021 |
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The Covid-19 pandemic continues to cloud the US economy as national blockages approach the one-year mark. But there are signs of hope as vaccinations are launched and cases begin to stabilize in some states.
Cumulative cases of Covid-19 worldwide reached 112 million, with nearly 2.5 million deaths, according to the Worldometer. In the United States, cases are now approaching 29 million, with more than 513,000 deaths, although the number of new cases in the United States has declined dramatically in recent weeks.
Dow Jones losers and winners
Home Depot (HD) fell 4% in heavy trade, staying below its 50-day moving average. The major home improvement retailer reported better-than-expected fourth-quarter earnings and sales before opening.
Home Depot’s profit increased 16% to $ 2.65 per share, including $ 0.99 in one-time costs related to the acquisition of HD Supply. Revenue grew 25% to $ 32.26 billion. Same-store sales increased 24.5%, with United States comps increasing 25%.
Apple (AAPL) decreased and fell by almost 3% in large volume. It traded below its 50-day line last week. On February 18, Apple shares triggered the 7% -8% loss-of-sale rule when they fell more than 7% below a 138.89 point-of-purchase for a glass with handle.
Other big first-rate losers included Boeing (BA), Intel (INTC), Microsoft (MSFT), Nike (NKE), Salesforce.com (CRM) and Walgreens Boots Alliance (WBA), below more than 1.5% each.
Microsoft has now fallen below a buying point of 232.96 and is close to testing its 50-day moving average line.
Disney (DIS) rose 2.6% to a new high at almost three times normal trade. It is now extended from an 183.50 point of purchase to a flat base, according to analysis by the MarketSmith chart. Disney’s stock buying zone peaked at 192.68. The media and theme park giant was featured on Monday’s IBD Stock Of The Day.
Outside the Dow
Software, automaker and solar inventories led the handicap among IBD’s 197 industrial groups. Banks, utilities and hotel stocks were among the few winners.
In the automaker group, Tesla (TSLA) fell 13% before reducing its loss to 5%. The action breached its 50-day line on Monday, for the first time in more than three months. He is on his way to extend his losing streak to four. On Sunday, the electric vehicle maker stopped taking orders for the cheaper version of the Model Y Standard Range SUV.
Tesla’s stock remains well extended from a 466 point of purchase for a glass with handle. It is now about 25% below its January 25 high of 900.40. Tesla is an IBD Leaderboad stock.
Among other EV actions, from China Nio (NIO) and Xpeng (XPEV) lost 8% and 5%, respectively. Nio reduced his loss from a 17% dip on Tuesday. On Monday, shares fell 8%, closing below the 50-day line for the first time in more than 10 months.
The Innovator IBD 50 ETF (FFTY) fell 8% before finding support in its 50-day line. By noon, the stock had reduced its loss to 4%. 360 DigiTech (QFIN) sank 12%, while Trex (TREX), Cerence (CRNC) and Meridian Bioscience (VIVO) lost more than 5% each.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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