The Dow Jones Industrial Average was trading at a midday low after reversing initial gains, with Tilray shares skyrocketing up to 58%. Tesla skidded 5%. General Motors plummeted after a chip shortage warning, while Twitter skyrocketed with strong earnings results. Nvidia is emerging today.
X
Among Dow Jones leaders, Apple (AAPL) fell 0.6%, while Microsoft (MSFT) fell 1% in today’s stock market. Disney (DIS) is in the buying range after Monday’s breakout move, while Nike (NKE) is approaching a new buying point after last week’s bullish move.
Tesla (TSLA) threatened to extend Tuesday’s 1.6% loss, falling more than 4% in midday trading. Tesla’s shares are close to a new record.
General Engines (GM), member of Dow Jones Coke (KO) and Twitter (TWTR) reported earnings before the stock market opened.
Palo Alto Networks (PANW) and Nvidia (NVDA) are among the top stocks in or near buying zones in Wednesday’s stock market action.
Apple, Microsoft and Tesla are shares of the IBD Leaderboard. Nvidia was the IBD share of the day, while Palo Alto Networks was the choice of IBD 50 shares to watch on Tuesday. Meanwhile, Nike was featured in this week’s Stocks Near A Buy Zone.
Dow Jones Today
On Wednesday, the Dow Jones Industrial Average fell 0.1%, while the S&P 500 fell 0.2%. The high-tech Nasdaq compound remained down 0.4% in midday trading, despite the cut in losses.
Overview of the US stock market today |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain / Loss | % Change |
| Dow Jones | (0DJIA) | 31370.44 | -5.39 | -0.02 |
| S&P 500 | (0S and P5) | 3904.49 | -6.74 | -0.17 |
| Nasdaq | (0NDQC) | 13953.26 | -54.44 | -0.39 |
| Russell 2000 | (IWM) | 227.55 | -0.83 | -0.36 |
| IBD 50 | (FFTY) | 47.89 | -0.24 | -0.50 |
Last updated: 11:46 am ET 10/02/2021 |
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Among the exchange-traded funds, Innovator IBD 50 (FFTY) traded down 0.1% on Wednesday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) fell 0.5%. Meanwhile, the SPDR S&P 500 ETF (SPY) fell 0.25%.
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Is the stock market boom overheating?
Looking back at the current bullish trend, November was an important month for the stock market. IBD’s The Big Picture signaled the new upward trend after the next day of the market’s rise on November 4th. Meanwhile, early February saw the Dow Jones Industrial Average, Nasdaq and S&P 500 break records. But is the stock market boom overheating?
Tuesday’s Big Picture commented: “The Nasdaq compound reached a technical milestone on Tuesday, adding 0.1% over three consecutive days of gains and closing above 14,000 for the first time. But overall the market showed a light and mixed action. “
Due to the recent strength, investors may again adopt an offensive stance, knowing that there are still good reasons for caution. Look for stocks that are outpacing new buying points, like Disney, Dropbox and Nvidia.
Focus on actions that showed strong relative strength during the recent weakness. They may be some of the market leaders if the indices continue on their record highs.
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Dow Jones Shares: Disney, Nike
Disney’s Dow Jones shares burst on Monday and is in the buying range above 183.50 points of purchase on a flat basis, according to analysis by the IBD MarketSmith chart. The 5% buying area rises to 192.68. Disney shares fell 1% on Wednesday, and are about 4% above the entry.
Disney will report earnings after closing on Thursday.
In another part of the Dow 30, Nike is designing a new flat base with a purchase point of 148.05. The shares fell 0.4% on Wednesday at noon, at a pace to burst a two-day losing streak.
Nike shares have optimistically recovered its 50-day moving average line in the past few sessions.
Dow Jones Profit: Coca-Cola
The shares of Dow Jones, Coca-Cola, released mixed results on Wednesday morning, exceeding profit targets but missing revenue estimates. The shares rose less than 1% in response.
The stock is tracing a flat base with a buy point of 55.03, but remains below its 50-day line.
Tilray Stock
Tilray (TLRY) skyrocketed as much as 58% on Wednesday morning, before slashing earnings to 25% at noon, increasing the increase by almost 41% on Tuesday. The shares are more than 400% from a 12.25 point of purchase on a glass base.
This week, Tilray reached an agreement with Grow Pharma to import and distribute Tilray medical marijuana products to the UK, available to patients in March. Patients can obtain a prescription through the National Health Service or a private practice.
Profit from the stock market: GM, Twitter
General Motors fell nearly 4% on Wednesday, despite reporting strong fourth quarter gains and sales results before the stock market opened. The company warned that a global chip shortage will affect profits.
GM shares are about 19% from a 46.81 point of purchase on a canopy basis after a January 12 breach.
Twitter’s shares rose 7% after exceeding Street’s fourth-quarter goals on Tuesday.
The stock has risen above 56.21 points of purchase in the last sessions and is already extended after entry.
Actions to watch: Palo Alto, Nvidia
The stock choice for watching Tuesday’s IBD 50, Palo Alto Networks, is in the buying range above 375.10 buying points on a flat basis. The shares rose 0.8% on Wednesday at noon and are almost extended.
The IBD 50 stock is expected to report its second quarter 2021 tax profits on Monday, February 22, after the market closes.
According to the IBD Stock Checkup, Palo Alto’s shares boast 96 out of a perfect rating made up of 99 IBD. The Composite Rating – an easy way to identify key growth stocks – is a combination of fundamental and technical metrics to help investors assess a stock’s strengths.
IBD Leaderboard Nvidia’s shares are exceeding the 587.76 buy point of a flat base amid a 3.1% increase. The shares are in the purchase range above the point of purchase and above an early entry of 560.07. Investors can start with a small position at this alternative point of purchase and add more shares to the conventional entry.
According to the Leaderboard comment, “Nvidia has released an alternative entry from its January highs. Shares continue to work on a flat basis. Nvidia was reduced to a quarter of the position on January 27 and raised to half in the Monday.”
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Tesla Stock
Tesla’s shares threatened to increase Tuesday’s losses, falling more than 4% on Wednesday at noon. The shares are just 4% of their historical records.
The January 8 IBD Stock Of The Day column signaled that Tesla was showing several signs of a climax amid a sharp vertical run in recent weeks. But so far, the stock is showing tremendous resilience, after reaching high records last week.
On January 25, Tesla’s shares reached a record high of 900.40. Shares are about 83% above 466 buying points in a cup with handle amid Monday’s action.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones’ top stocks, Apple fell 0.6% on Wednesday, and remains below its 138.89 buying point in a cup with cable. The shares withdrew from entry on January 28.
Meanwhile, Microsoft fell 1% on Wednesday at noon, en route to a three-day winning streak. The software giant’s shares surpassed a buying point of 232.96 in recent sessions. The stock is at the top of the 5% buying zone, which rises to 244.61.
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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