The Nasdaq was sold after the 10-year Treasury yield reached its highest levels of the year after the approval of the $ 1.9 trillion Biden stimulus plan. The Dow Jones Industrial Average continued to rise, however, with Boeing (BA) the outstanding blue chip performer. Meanwhile, Warren Buffett’s actions StoneCo (STNE) fell sharply on weak gains.
X
Apple (AAPL) and Intel (INTC) were among the losers of the day, while Tesla (TSLA) and Nio (NIO) relieved after a recovery.
The 10-year Treasury yield reached 1.635%, the highest level of the year so far. Yield on 30-year Treasury bills has also increased. Higher current inflation and higher expected inflation cause yields to rise. This is because investors will demand a higher return to offset the risk of inflation.
Some economists have warned that the $ 1.9 trillion stimulus bill, which President Joe Biden signed on Thursday, could fuel inflation. Oanda senior market analyst Edward Moya believes that Federal Reserve Chairman Jerome Powell may be forced to adopt a more proactive tone during next week’s Federal Open Market Committee policy meeting.
“Before today, bond yields appeared to be stabilizing and many analysts expected that next week it would be an easy FOMC policy meeting that would deliver much of the same rhetoric as Fed Powell president,” he said in a note to clients. “If the liquidation of the bond market intensifies until the FOMC decision on March 17, the Fed may finally have to react against the Treasury yield movement.”
Nasdaq Dives; S&P 500 Slips
Nasdaq fell about 1%, although it was at low levels. China Stock JD.com (JD) had the worst performance in the composite, falling almost 7%. DocuSign (DOCU) was another big loser.
The S&P 500 fell another 0.2% marginally. Ulta Beauty (ULTA) fell almost 9% in weak gains. The next worst performance was PerkinElmer (PKI), which showed a more moderate drop of just over 3%.
Overview of the US stock market today |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain / Loss | % Change |
| Dow Jones | (0DJIA) | 32670.61 | +185.02 | +0.57 |
| S&P 500 | (0S and P5) | 3931.27 | -8.07 | -0.20 |
| Nasdaq | (0NDQC) | 13269.53 | -129.14 | -0.96 |
| Russell 2000 | (IWM) | 232.92 | +0.70 | +0.30 |
| IBD 50 | (FFTY) | 46.96 | -0.18 | -0.38 |
Last updated: 13h22 ET 12/03/2021 |
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The volume was lower compared to the same time as Thursday. Trades fell 6% on Nasdaq and plunged 16% on the NYSE.
The S&P sectors were mixed, with leadership in the financial sector. The biggest laggards were technology and communication services.
Growth stocks were also forced to fall, with the Innovator IBD 50 ETF (FFTY) losing about 0.4%.
Boeing soars and helps lift the Dow Jones
The Dow Jones Industrial Average was the main index with the best performance, with an increase of 0.6%
Boeing was the best performing component, rising more than 6%. He shot out of the shopping zone after passing a basic 244.18 cup purchase point, MarketSmith’s analysis shows. The gains remain weak, however.
Apple’s shares were among Dow’s biggest losers, falling more than 1%. Apple is falling closer to its 200-day line and is below its 50-day line. The relative strength of Apple’s stock needs to improve as it has been dropping since the end of January.
Intel was another laggard after falling more than 1%, but the worst performance at Dow was Salesforce.com (CRM). The latter fell by almost 2%
Warren Buffett Stock falls on earnings
StoneCo is falling further below its 50-day moving average. Shares fell after reporting fourth-quarter earnings fell 8%, to 22 cents a share.
Warren Buffett is a big supporter of StoneCo. His Berkshire Hathaway (BRKB) holds 14.17 million shares, which represents more than 6% of all shares of StoneCo.
Bank of New York Mellon (BK) managed to exceed a point of purchase by 46.94, but was stagnating at that level. The stock boasts a weak IBD Composite Rating of 49, however, with mediocre stock market earnings and performance. Banks struggle to make a profit when interest rates are low.
Tesla Stock, Nio Stock Stall
Tesla’s shares stopped again after Thursday’s gain. It fell about 2%. However, it is on track to record a weekly gain of around 15%. Tesla’s RS line is improving after a recent downturn.
Tesla’s shares have already reached their 50-day moving average, but have stayed well away from its 200-day line. It has a Composite Rating of 94. The recent poor performance of Tesla’s shares has caused it to lose its place on the Leader Board.
Chinese rival Nio has also fallen, although it has reduced losses. It dropped about 1.5%. It is on its way to earning about 19% in the week. Nio’s shares remain isolated below their 50-day moving average, but are now well out of their 200-day line. The stock collapsed after a 57.30 entry breach failed.
Follow Michael Larkin on Twitter at @IBD_MLarkin for more information on growth and analysis actions.
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