The Dow Jones Industrial Average was giving way, even as the Nasdaq rose on Friday. Intel (INTC) was among the best performing blue chips, but bears mistreated Visa (V) in the midst of an investigation by the Justice Department on possible anti-competitive behavior. Nike (NKE) also had problems with mixed gains.
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Banks were dragged down after the Federal Reserve’s decision not to extend a pandemic-era exemption that reduced banks’ capital requirements. Leaderboard Wells Fargo (WFC) was struck lower. However, another Leaderboard member Williams-Sonoma (WSM) continued to move optimistically.
The main yield on 10-year Treasury bills remained above the 1.7% mark, although it fell slightly. Increased earnings have hampered growing stocks, with technology companies suffering the most.
Fed Chairman Jerome Powell said in an opinion article published in The Wall Street Journal on Friday that the central bank is committed to an all-in approach while trying to restore the economy to health.
Nasdaq, S&P 500 Push Higher
The Nasdaq rose about 0.8%, although it remains shy at its 50-day moving average. Home exercise stock Peloton Interactive (PTON) was the biggest winner, rising more than 5%.
The S&P 500 also advanced, although its 0.3% gain has lagged behind. Western Oil (OXY) was the one that grew the most, earning more than 6%.
The volume was higher than at the same time as Thursday. Trading rose about 2% on the Nasdaq and jumped 50% on the NYSE.
Overview of the US stock market today |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain / Loss | % Change |
| Dow Jones | (0DJIA) | 32753.61 | -108.69 | -0.33 |
| S&P 500 | (0S and P5) | 3925.82 | +10.36 | +0.26 |
| Nasdaq | (0NDQC) | 13224.12 | +107.95 | +0.82 |
| Russell 2000 | (IWM) | 226.98 | +1.74 | +0.77 |
| IBD 50 | (FFTY) | 46.89 | +0.54 | +1.17 |
Last updated: 14h52 ET 19/03/2021 |
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The S&P sectors were mixed, with more winners than losers. Energy and communication services lead the way, while finances lag behind.
Small caps were ending the week with a flourish. The Russell 2000 rose 0.8%.
Growth stocks also advanced, with the Innovator IBD 50 ETF (FFTY) bursting 1.2%.
Dow Jones stock approaches buy when index falls
The Dow Jones Industrial Average fell behind the other main indices, dropping around 0.3%, although it remained at minimum levels.
Intel’s shares were among the main components on Friday, gaining about 1%. The Dow Jones stock is close to its buying zone, after leaving a double-bottomed base with a buying point of 65.21. Intel’s shares have a rating made up of 77.
UnitedHealth (UNH) was the main share of Dow Jones of the day, however, rising more than 2%. The health insurer surpassed a buying point of 367.49 in heavy negotiations.
Nike’s shares were among the biggest losers after registering mixed gains on Thursday night. It fell almost 3% and is now testing its 50-day moving average.
Visa Falls Shares in Sonda DOJ
Visa’s shares fell nearly 5% on the news that they are being investigated by the Department of Justice. The department’s antitrust division is asking whether Visa has restricted merchants’ ability to route debit card transactions on card networks that are often cheaper.
The new civil antitrust investigation resurfaces the controversy over so-called network fees, which are invisible to consumers and profitable to card companies. But they are a burden for traders, who often pass rates on to customers in the form of higher prices.
Dow Jones shares dipped below a buying point of 211.69, which came out of a cup holder with cable last month.
Black eye for bank shares in this Fed move
Bank shares were discarded on Friday after the Federal Reserve said it would not extend a coronavirus-related emergency measure aimed at facilitating lending.
The extension will expire on March 31, as planned, despite the banks’ lobby. This means that banks would have to include Treasury bills and Fed bank deposits in how they calculate the supplementary leverage ratio, which aims to keep banks’ risk-taking under control.
The IBD Leaderboard Wells Fargo stock dropped by almost 3%. Bank of America (BAC) and Citigroup (C) fell 1%, while JPMorgan Chase (JPM) fell by about 3%.
Leaderboard inventory approaches this key level
Williams-Sonoma shares continued to rise, gaining almost 9%. The stock is now approaching its 20% to 25% profit-taking range. Shares rose on Thursday in a strong quarterly report, clearing a canopy base.
Meanwhile, another furniture inventory Wayfair (W) is the IBD stock of the day. It is approaching an entry at 343.09, with the purchase zone extending to 360.24.
The e-commerce company has performed consistently during the Covid-19 outage, having maintained double-digit revenue growth per quarter for several years and triple-digit earnings growth over the past three quarters.
Follow Michael Larkin on Twitter at @IBD_MLarkin for more information on growth and analysis actions.
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