Stocks fell earlier in the day, then quickly mixed on Thursday, with rising bond yields, disappointing unemployment data and a spike in March manufacturing data fueling the initial turbulent trade. The new issue of Upstart Holdings and IBD 50 Williams-Sonoma shares skyrocketed profits. Nike approached a buying point at the Dow Jones today, ahead of its third quarter report, which will be released after the close.
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Dow industrialists shook off initial losses and advocated a 0.1% gain on the stock exchange today. The S&P 500 fell 0.5%, while the Nasdaq Composite fell 1.4%.
Utilities were on the move, as PPL (PPL) jumped more than 5% to lead the S&P 500, after it agreed to sell its unit in the United Kingdom, the largest energy supplier in that country to national grid (NGG) in a $ 10.89 billion deal. National Grid shares were up 1.4%.
Dollar General (DG) weighed on the bottom of the S&P 500, down more than 5% after the fourth quarter report.
MarketLibre (MELI) spent time with Zoom Video (ZM) at the bottom of the Nasdaq 100. Utility Excelon (EXC) traded at the top of the index.
Among regional bank ETFs, SPDR S&P Regional Banking ETF (KRE) and iShares US Regional Banks ETF (IAT) each rose more than 2%.
Small caps fell at the start of the negotiations, with Russell 2000 being traded down 0.6%, although biotechnology Vericel (VCEL) and Signet Jewelers (GIS) jumped near the top of the index. ETF Shares in the Vanguard Russell 2000 Index Fund (VTWO) fell 1%.
Banks accompany Dow Jones today with rising bond yields
JP Morgan (JPM) and Goldman Sachs (GS) followed the Dow Jones today, each rising more than 2% in the first shares. JPMorgan’s shares were extended after the settlement of a 12-month basis in mid-February. Goldman Sachs recovered from 10-week support in early February, marking an increase of 17.8% in the month. The shares have risen 8% so far in March.
The bonds were quickly sold low, sending the 10-year Treasury yield up sharply. Treasury yield jumped 9 basis points to 1.74%, the highest level since mid-January 2020. Yields increased rapidly from record low during the pandemic, from about 0.50% in August.
Stock market ETF strategy and how to invest in the current bullish trend
Fed Chairman Jerome Powell indicated on Wednesday that the Fed saw no need to react against current rate hikes, with the Fed maintaining its monthly bond buying stance at $ 80 billion in Treasury bonds, $ 40 billion in mortgage bonds.
Yields were approaching pre-pandemic levels early Thursday, after starting in 2020 at about 1.8%, which was about 2.7% a year earlier.
Recovery from unemployment claims, Philly Fed Spikes, US / China meeting
The first claims for unemployment insurance rose to 770,000 in the week ending March 13, the Department of Labor reported. That was a big step from the 712,000 complaints filed the previous week, disappointing expectations for a drop to 700,000.
The Philadelphia Federal Reserve’s Manufacturing Business Outlook Survey, which measures manufacturing in the Central Atlantic region, increased to 51.8 in March, a 50-year high. The increase pushed expectations away from a modest increase to 24. New orders jumped from 28 to 50 in the month, also a 50-year high. However, input prices have also increased, with the price paid index jumping from 54.4 to 75.9, its highest level since 1980.
China’s actions may have some impact later in the session, as President Joe Biden’s government approaches its first face-to-face test with China at a meeting today in Alaska. Secretary of State Antony Blinken and national security adviser Jake Sullivan will meet with Chinese Foreign Minister Wang Yi and Yang Jiechi, a member of the governing body of the Communist Party.
The Chinese say they will ask that Trump-era restrictions on Chinese trade be lifted. The US delegation plans to address issues related to Hong Kong and the South China Sea regulations, as well as cybersecurity and intellectual property rights issues.
Earnings: Williams Sonoma, Accenture Eye purchase points
The earnings news had an impact on initial trade, with Canadian Solar (CSIQ) and Signet Jewelers, each trading up 10% and 8%, respectively, after reporting the results. On the negative side, Dollar General fell more than 4% after profits and projections were below expectations.
New December offer Upstart Holdings (UPST) soared 50% higher after exceeding analysts’ goals for fourth quarter revenue and earnings, and driving first-quarter and full-year results above expectations. The stock is in a deep five-week consolidation, 42% below its February 11 high, and more than 200% above the December 16 IPO price.
IBD 50 stock Williams-Sonoma (WSM) generated a 15% increase after reporting earnings above expectations and accelerating sales growth in the fourth quarter. The gap-up gain sent the stock to a buying range above a cup-based buying point at 151.26.
Management consultant Accenture rose 1.1% after marking a solid fiscal hit in the second quarter and announcing plans to return $ 5.8 billion to shareholders in dividends and repurchases. The stock ended Wednesday less than 3% below a buying point of 271.28 on a stable 13-week basis.
Accenture’s stock was forming an identifier, but the identifier is only four days long, unless the five days required to produce a valid point of purchase.
Bitcoin Rebounds
Bitcoin jumped to close to $ 58,000 after dropping to less than $ 54,000 on Tuesday, according to CoinDesk. The cryptocurrency reached a record high of $ 61,556 on March 11.
Among Bitcoin-related actions, Marathon Patent Group (MARA) fell by 3.6%, while MicroStrategy (MSTR) traded 2.7% in the red.
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IBD Leaderboard Stock PayPal Holdings (PYPL) fell 2.1%. PayPal’s shares have been influenced by Bitcoin price fluctuations since October, when the company launched a cryptocurrency trading service that trades Bitcoin. The stock has been groping its way along the resistance at the bottom of its 10-week moving average, while trying to start the right side of a five-week consolidation.
Covid vaccine: 12% of those vaccinated in the USA
The Centers for Disease Control and Prevention reports 147.59 million doses of vaccines distributed in the United States, with more than 113 million vaccines administered so far. People who received at least one injection represent 22.2% of the total population and 12% of the population has already been fully vaccinated.
Dow Jones Today: Above 33,000, the Nasdaq Base
Dow industrialists recorded their first close above 33,000 on Wednesday. The S&P 500 also hit a record-breaking close, ending less than 1% below 4,000. The Russell 2000 is well placed, above support and just below its own records.
For a more detailed analysis of the current stock market and its status, study the big picture.
Nasdaq modestly improved its status this week, resuming and maintaining support at its 50-day and 21-day convergent exponential moving averages. A quick look at the Invesco QQQ Trust (QQQ) shows the chart ending the fifth week of a flat base. That means a new buying point earlier in the week, set at 338.29 – 5% above where the fund ended trading on Wednesday.
The Fed’s prospect of “no interest rate hike until 2024” and its estimate of GDP growth to 6.5% on Wednesday may have marked a turning point in Nasdaq consolidation. Apple (AAPL) is rising, recovering from 10-week support after three weeks of tight closings. Amazon.com (AMZN) resumed support on its 200-day line on Wednesday.
Technology stock charts, sector funds improve
the Facebook (FB) is up almost 6% so far this week and rising towards a handful of alternative points of purchase, starting at 286.89. Leaderboard technology giants Alphabet (Google Microsoft (MSFT) are hovering just below or above the purchase points.
See the fund charts that represent some of Nasdaq’s most growth-oriented segments. The VanEck Vectors Semiconductor ETF (SMH) and the iShares PHLX Semiconductor ETF (SOXX) are configured to end flat five-week bases. The ETF Defiance 5G Next Gen Connectivity (FIVG) has made a powerful recovery in the past two weeks. The Invesco Solar ETF (TAN) shows alternative energy issues still defeated, but the ETF Global X Autonomous & Electric Vehicles (DRIV) recovered quickly, with its chart running ahead of Nasdaq.
Nike ends the reporting season at Dow Jones today, presenting its third quarter fiscal results after the market closed. Nike shares ended Wednesday at 2% from a 148.05 point of purchase on a stable 12-week basis.
Find Alan R. Elliott on Twitter @IBD_Aelliott
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