The Dow Jones industrial average traded lower in today’s stock market as major indices all declined in afternoon trading. The S&P 500 and Nasdaq composite both reversed lower after briefly trading positively, while the Dow traded near its low of the day.
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About an hour before the market closed, the small-cap Russell 2000 fell by more than 3%, leading the market to the downside. Around 15:15 ET, the Nasdaq composite fell by 1%. The S&P 500 lost 0.6%, while the Dow Jones industrial average fell 0.8%. The volume traded higher on the Nasdaq and on the NYSE compared to the same time Monday.
On Tuesday, investors considered testimony from Fed Chairman Jerome Powell and Treasury Secretary Janet Yellen. In a hearing in the US House Financial Services Committee, Yellen and Powell made their first joint appearance to talk about the government’s aid efforts Covid-19. Powell told lawmakers that the economic recovery has progressed faster than generally expected, and that it appears to be strengthening. But he also said the recovery is far from complete.
In addition, increasing cases in Covid-19 forced Germany to announce an extension of one month earlier on Tuesday over its strict closure measures. However, many countries in the US are easing restrictions, and there are signs of hope as vaccinations begin to roll out and cases in some states begin to flatten and even fall.
Cumulative Covid-19 cases worldwide have risen to more than 124 million, with more than 2.7 million deaths, according to Worldometer. In the US, cases approach 30.6 million with more than 556,000 deaths. On the positive side, the number of new cases in the US has dropped dramatically.
Big market technology stocks outperform
On Tuesday, oil and gas, retail and biotechnology stocks lagged behind IBD’s 197 industry groups. According to OilPrice.com, WTI crude oil futures slipped more than 6% to $ 57.74 a barrel.
But several technology-related industry groups have shown new strength. The few lenders included stocks, software, and Internet-related stocks. Large-cap technology stocks such as Netflix (NFLX), Amazon.com (AMZN) and Alphabet (GOOGL) everyone did better.
Netflix shares, which appeared in Tuesday’s IBD Live show, rose 3.5% in heavy trading as shares regained the 50-day moving average for the first time in nearly three weeks. Argus Research upgraded Netflix shares to a buyout with a 560 price target. The film and TV program streamer is working on a nine-week level consolidation with a buying point of 593.39.
Meanwhile, it Adobe (ADBE), which reported earnings after Wednesday, rose nearly 3% as it tried to regain its newly merged 50- and 200-day lines. Shares remain in a deteriorating trend as the relative strength rating has dropped to the lowest 19 from the best possible 99. The RS line has also declined in recent months.
Zacks’ consensus estimate is for an adjusted earnings of $ 2.79 per share, up 23% from a year earlier, with sales up 22% to $ 3.77 billion.
In terms of growth stocks, the Innovator IBD 50 ETF (FFTY) fell by more than 3%. The growth-focused index is trading below the support on the 50-day line after regaining this key area last week. Supplies that led to the downside were Tuesday Cowen (COWN), GrowGeneration (GRWG) and Ligand Pharmaceutical Products (LGND) with losses of more than 5% each.
But a small handful of IBD 50 stocks initially included the decline Zebra Technologies (ZBRA), PTC (PTC) and Vipshop (VIPS), with about 1% each. But the previous two returned profits. VIPS made a moderate profit, 0.6% higher.
Dow Jones Today
As for the Dow Jones, Proctor & Gamble (PG), Microsoft (MSFT) and Walmart (WMT) took the lead with a profit of more than 1% each. On the downside are shares of Dow (DOW) and Boeing (BA) each decreased 3.5% or more.
Leader share Microsoft rose about 2% as it traded above the 50-day line. Microsoft is also an IBD long-term leader stock. Shares are climbing back above a 232.96 buying point, placing the software giant in a potential buying range that stands at 244.61.
The stock is also approaching a 246.23 buy point from a new flat base, according to the MarketSmith chart analysis. Microsoft shares are down about 2% of the subscription.
Elsewhere, Intel shares lost nearly 3% on Tuesday when shares traded below the 5% double-bottom buying zone with a buy point of 65.21. Shares of Intel had already broken out in the buying zone on Monday, but fell back below the buying point. According to MarketSmith’s chart analysis, the buying zone is at 68.47.
Intel’s relative strength line, which has climbed over the past few months, remains high. In addition, the 51 rating of 51 remains well below the minimum of 80 we want to see for growth stocks.
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