The Dow Jones industrial average closed slightly lower on Monday, fueling an early 135-point loss through comments from Fed Chairman Jerome Powell.
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The Nasdaq fell 0.4%, the Dow Jones industrial average fell less than 0.2% and the S&P 500 ended almost flat in the stock market today. Small-cap capitalization followed by the Russell 2000 fell by more than 0.3%. Early data showed a higher volume for both major stock markets compared to Friday.
Fed chief Powell said on Sunday at ’60 minutes’ that he was’ highly unlikely ‘that the central bank would raise rates this year. He said the “outlook has brightened significantly” and that the economy is at a “turning point.”
“One more thing, we’re looking at asset prices,” he said. “And I would say, you know, some asset prices are rising by historical standards.”
The stock market opened lower on Monday, with the main indices having light losses during most of the session.
Technical stocks raised the Nasdaq composite to a 43.6% increase in 2020 for its fifth best year ever. The S&P 500 rose 16.3% and the Dow rose 7.2% last year. After a strong start this year, the market is coming back due to a brief correction. Read the big picture for detailed daily market analysis.
US stock market overview today |
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|---|---|---|---|---|
| Index | Symbol | Price | Profit / loss | % Change |
| Dow jones | (0DJIA) | 33745.86 | -54.74 | -0.16 |
| S&P 500 | (0S & P5) | 4128.10 | -0.70 | -0.02 |
| Nasdaq | (0NDQC) | 13850.00 | -50.18 | -0.36 |
| Russell 2000 | (IWM) | 221.88 | -0.71 | -0.32 |
| IBD 50 | (FFTY) | 45.58 | +0.06 | +0.13 |
Last updated: 16:08 ET 4/12/2021 |
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The Covid-19 pandemic has angered the U.S. economy as nationwide shutdowns reach the one-year mark. But many countries are easing restrictions, and although cases in some states are starting to flatten, there are signs of hope as vaccinations begin.
Cumulative Covid-19 cases worldwide are approaching 137 million, with more than 2.9 million deaths, according to Worldometer. In the US, the number of cases rose 31.9 million with nearly 576,000 deaths, although the number of new cases in the US decreased dramatically.
Dow losers and winners
Intel (INTC) fell 4.2% after graphics chip maker Nvidia (NVDA) has announced its first server chip. The ‘Grace’ disc, based on technology from the British disc designer ARM, will be released in 2023. It is expected to compete directly with Intel in 2023.
Intel stock, now 4% lower than its 52-week high, remains in a potential buy price of a 65.21 entry to a double-bottom base. The buy range rises to 68.45.
Boeing (BA), Salesforce.com (CRM) and appeal (AAPL), which fell more than 1% each, was also one of the biggest losers for blue chips.
The Boeing share, which fell 1.2%, is again in the buying range of a 244.18 buy base of a cup base, according to the MarketSmith chart analysis. The buying zone is 256.39. On Sunday, a Boeing trade union voted to authorize a strike if a new contract is not reached with the aircraft maker by April 17.
Apple shares, up 1.3%, reached a seven-session winning streak. The iPhone maker will delay some MacBook and iPad orders due to the worldwide shortage of chips, the Japanese Nikkei news service reported last week. Shares regained the ten-week moving average last week. They are about 10% of a 145.19 buy point from a cup base.
On February 18, Apple activated the loss-reducing sales rule of 7% -8% when it fell more than 7% below a 138.89 buy point of a cup with handle.
Outside The Dow Jones
Biotech, airline and consumer electronics stocks suffered the worst among IBD’s 197 industry groups. But car manufacturers, manufacturers of leisure products and air freight transport perform better.
In the car manufacturer group Tesla (TSLA) has amassed nearly 4% to regain its ten-week average after being below the line for almost two months. Canaccord Genuity has upgraded the stock of electric vehicles for sale, with a 1,071 price target. Tesla shares may be building a new base. It remains well extended from a 466 purchase point of a cup with handle.
Among the notable eruptions today, Yeti (YETI) rose by almost 7% in large volume and passed a correct entry point of 80.99. It is close to the top of the buying zone, ending at 85.03. Yeti, which was discussed in IBD Live this morning, has been added to the IBD Leaderboard.
The manufacturer of premium coolers and other outdoor gear was presented as the IBD Stock Of The Day last Tuesday.
IBD 50 turns
The Innovator IBD 50 ETF (FFTY) reversed slightly higher despite large losses from New Fortress Energy (NFE) and 360 DigiTech (QFIN).
New Fortress Energy dropped 11.5% to cross the 50-day line. The stock is about 18% away from a 56.86 double-bottom buying point. Recent IPO 360 DigiTech tumbled 6.5% while relying on its 50-day range test. Shares are still expanding from an 18.16 buy point of a cup base.
But an increase of 20% Plby Group (PLBY), as well as 3% -plus profits from MarineMax (HZO), Floor and decor (FND) and Cerence (CRNC), helped offset the losses in the IBD 50.
Follow Nancy Gondo on Twitter @IBD_NGondo
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