The Dow Jones Industrial Average rose after brief losses on Wednesday, while technology stocks plunged as Treasury yields jumped ahead of the Fed’s policy announcement. Plug Power plunged into accounting issues, while Tesla’s shares rose again soon. CrowdStrike and Pinduoduo reported earnings before the opening.
X
Among Dow Jones leaders, Apple (AAPL) fell 2% Wednesday, while Microsoft (MSFT) fell by almost 1% in today’s stock market. Nike (NKE) is approaching a new point of purchase.
Tesla (TSLA) fell more than 3% in Wednesday morning trading, before reverting upwards briefly, while Plug Power (PLUG) plunged 13% in accounting issues. CrowdStrike (CRWD) increased and Pinduoduo (PDD) fell after reporting earnings before the stock market opened.
Among the main actions to be observed, Applied Materials (AMAT) and Heavenly Hain (HAIN) are in or near buying zones at the new high in the stock market.
Microsoft and Tesla are shares of the IBD Leaderboard. Applied Materials is a recent addition to the IBD SwingTrader, while Hain Celestial was featured in this week’s Stocks Near A Buy Zone column.
Dow Jones Today: Fed Meeting, Treasury Yields
The Dow Jones Industrial Average rose 0.35% after being briefly negative, while the S&P 500 fell 0.5%. The composition of Nasdaq with high technology fell 1.4% in the morning trading, after reducing some losses.
The Federal Reserve will announce its political decision at 2:00 pm Eastern Time. Investors will seek clarification from the central bank and the Fed’s head, Jerome Powell, regarding inflation and increased Treasury yields.
The 10-year Treasury yield jumped to 1.685%, reaching a 13-month high.
Among the exchange-traded funds, the Innovator IBD 50 (FFTY) was down 1.2% on Wednesday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) fell 0.8%. Meanwhile, the SPDR S&P 500 ETF (SPY) fell 0.4%.
Stock market rally: Nasdaq faces key test
Amid a further stock market recovery, the Dow Jones Industrial Average hit record highs on Monday, while the S&P 500 hit historic highs on Tuesday.
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.
Tuesday’s Big Picture commented, “US stocks faded on Tuesday as investors prepared for what could be one of the Fed’s most important meetings on the coronavirus pandemic.”
ETF strategy of the stock market and how to invest
Bitcoin Price
Bitcoin briefly surpassed $ 61,000 over the weekend to reach an all-time high before falling on Monday. Bitcoin’s price reached its upper limit on Saturday, reaching $ 61,556.
Bitcoin’s price was traded around $ 55,300 on Wednesday morning, according to CoinDesk.
The Grayscale Bitcoin Trust (GBTC) ETF advanced more than 14% last week, continuing to rise from its 10-week line. GBTC lost 2% on Wednesday.
Dow Jones shares: Nike
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 Wednesday’s 0.5% gain.
Stock to watch: applied materials, Hain
The IBD SwingTrader Applied Materials stock is close to completing a new base, which would offer a buying point of 124.60. Meanwhile, the stock is recovering from its 50-day mainline after testing that level on March 8.
According to the IBD Stock Checkup, AMAT’s stock has a perfect rating of 99 IBD Composite. IBD Composite Rating helps investors easily measure the quality of a stock’s fundamental and technical metrics.
The shares fell 0.2% on Wednesday.
Friday’s IBD day stock, Hain Celestial, is trying to exceed a 45.52 point of purchase on a flat basis. Shares briefly outperformed the entry on Tuesday, before closing below it. The shares fell nearly 1% on Wednesday morning.
Stock market profits: CrowdStrike, Pinduoduo
Cybersecurity leader CrowdStrike rose more than 2% after the company made a profit during its fiscal fourth quarter of 2021 and surpassed views, while revenue also surpassed Wall Street estimates. CrowdStrike also reported 2022 full-year revenue guidance above expectations.
CrowdStrike’s stock is about 20% below its 52-week high and below its 50-day line.
Chinese leader Pinduoduo fell 8% after the company failed to meet fourth-quarter profit targets. The stock is more than 30% below its 52-week high.
IBD Live: a new tool for daily stock market analysis
Connect the energy stock
Plug Power’s shares plunged 13% on Wednesday morning after the company said it re-presented the 2018 and 2019 financial statements, as well as the 2019 and 2020 quarterly statements due to accounting errors related to non-monetary items.
PLUG’s stock ended Tuesday with more than a 40% drop on its 52-week high and well below its 10-week moving average.
Tesla Stock
Tesla’s shares plunged more than 3% on Wednesday morning, threatening to increase Tuesday’s 4.4% loss before briefly reverting upward in morning trades. Tesla fell 0.5% at noon. 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’ top stocks, Apple fell about 2% on Wednesday, en route to a two-day winning streak. Apple shares are recovering from their 40-week long-term line and may soon try to recover their 10-week line,
On February 18, Apple’s stock triggered the 7% -8% loss-of-sale rule when it fell more than 7% below its 138.89 point of purchase in a glass with handle.
Meanwhile, Microsoft fell nearly 1% on Wednesday, looking to return part of the 1.2% gain on Tuesday. The shares are holding just above their 232.96 buying point.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on growth stocks and the Dow Jones Industrial Average.
YOU MIGHT LIKE:
Main growth actions to buy and observe
Learn how to time the market with IBD’s ETF market strategy
Find the best long-term investments with IBD’s long-term leaders
MarketSmith: research, graphs, data and training in one place
How to research growth stocks: why this IBD tool simplifies the search for the main stocks