The Dow Jones Industrial Average has reached a new high in today’s stock market. The Nasdaq was sold at a loss of more than 100 points, with yields on U.S. Treasury bonds resuming their high. The S&P 500 fell slightly. However, in the last hour of trading, the three main indices showed an upward trend in relation to intraday lows.
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Stock market today
The Russell 2000 low capitalization index traded 0.2% above. The Nasdaq compound fell 0.9%, leading the market on the downside. The S&P 500 was traded 0.1% below, while the Dow Jones recorded an increase of 0.7%. The volume was lower on the NYSE and Nasdaq, compared to the same time as Thursday.
The Nasdaq was sold after the 10-year Treasury yield reached its highest level of the year so far, reaching 1.635%. Yield on 30-year Treasury bills has also increased. Investors demand a higher return to offset the risk of inflation. That is why higher current inflation and higher expected inflation can cause yields to rise.
Recently, several economists have warned that the $ 1.9 trillion stimulus bill signed by President Joe Biden on Thursday could fuel inflation. It is possible that Federal Reserve Chairman Jerome Powell will be forced to adopt a more proactive tone than expected during next week’s Federal Open Market Committee policy meeting.
In addition, the inflation gauge data released by the Labor Department on Friday showed that producer prices are slightly warmer than expectations in February.
Sector rotation continues
The Innovator IBD 50 ETF (FFTY) fell 0.8% on Friday. The ETF still maintains a gain of more than 7% for the week. Growing stock ETF shares regained support on the 50-day line on Thursday. The stocks leading the downside in the growth-focused ETF were MDC Holdings (MDC) and Dynatrace (DT), with losses greater than 4% each.
MDC Holdings is currently extended from a handle cup base with 48.62 points of purchase. The shares are being traded just below the 20% to 25% profit zone. Meanwhile, Dynatrace has barely extended from the purchase zone of a 48.95 consolidation entry. The stock recently found solid support in the 50-day line.
Internet content, software and chip stocks have led to disadvantage among IBD industry groups, as sector rotation away from these key sectors continues to develop. But electronics retailers, airlines and steel stocks were among the best performers.
Dow Jones Today
The Dow Jones had a solid gain, as many blue chips traded higher. Actions leading on the positive side were Boeing (BA), Caterpillar (CAT) and Walgreens (WBA).
Boeing shares traded 6% higher on Friday. Boeing’s shares rose in large volume, as they traded above the buying zone of a canopy base with a buying point of 244.18. The buying zone reached 256.28, according to MarketSmith’s analysis. The stock recently rebounded its 50-day line, a bullish signal, and is now extended.
Investors should be aware that the stock maintains low IBD Ratings, including a Compound Rating 29 and 60 RS. But, as panelists noted on Friday’s IBD Live program, fundamental market twists tend to show these ratings in the early stages of their comeback.
Elsewhere, Walgreens’ shares rose more than 3% as the stock approached a 55.59 point of purchase on a cup with cable basis. The stock remains 4% outside the key buying zone. The stock also found strong support in its 50-day line last week and has been rising ever since.
At the Dow Jones
Meanwhile, several Dow Jones technology leaders sold out on Friday.
Tech giant Microsoft (MSFT), a Leaderboard member, fell less than 1% because the shares remained within the buy zone of a 232.96 consolidation buy point. The stock recently found support near the 50-day moving average. Microsoft’s stock remains about 4% below its 52-week high.
Finally, Intel (INTC) shares fell less than 1%. The shares continue to approach a new point of purchase for a massive double-bottomed base, according to analysis by the MarketSmith chart. The base maintains a 65.21 entry point. The shares remain 7% outside the main buying zone.
The graph can also be interpreted as a cup base with handle with a suitable input at 63.64. The stock recently recovered its 50 and 200 day lines.
Technology giants Apple (AAPL) and Salesforce.com (CRM) led the handicap among blue chips with losses of more than 1%.
Follow Fox on Twitter at @foxonstocks for more comments from Dow Jones and the market.
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