The Dow Jones industrial average fell more than 100 points on Tuesday as Fed chief Jerome Powell called the US economy “much better”. Treasury yields were downward from recent highs. EV giant Tesla shares have reversed lower, while disc giants Applied Materials and Nvidia are stocks to watch.
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Among the Dow Jones leaders, appeal (AAPL) fell 0.6% on Tuesday, while Microsoft (MSFT) rose 0.8% in today’s stock market. Boeing (BA) is back in the buying range after a recent breakthrough.
Tesla (TSLA) reversed lower on Tuesday morning to Monday’s gain of 2.3%.
Among the top stocks to watch are chip leaders Applied materials (AMAT), ASML (ASML), FMD instruments (MKSI), Nvidia (NVDA) and Qorvo (QRVO) shows leadership potential in the current stock market boom.
Meanwhile, it Alphabet (GOOGL), and Wayfair (W) is in or near buying zones. Alphabet was in this week’s Stocks Near A Buy Zone category, while Wayfair was the IBD 50 Stocks To Watch pick on Monday.
Alphabet, Microsoft and Nvidia are IBD Leaderboard shares. MKS Instruments was the IBD Stock Of The Day on Tuesday.
Dow Jones Today: Treasury Yields, Powell Comments
The Dow Jones industrial average fell 0.35%, while the S&P 500 fell 0.2%. The tech-heavy Nasdaq compound fell 0.3% after turning lower in morning trading.
US stock market overview today |
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|---|---|---|---|---|
| Index | Symbol | Price | Profit / loss | % Change |
| Dow jones | (0DJIA) | 32618.64 | -112.56 | -0.34 |
| S&P 500 | (0S & P5) | 3931.60 | -8.99 | -0.23 |
| Nasdaq | (0NDQC) | 13326.48 | -51.06 | -0.38 |
| Russell 2000 | (IWM) | 221.14 | -4.09 | -1.82 |
| IBD 50 | (FFTY) | 45.74 | -1.11 | -2.37 |
Last updated: 10:50 PM ET 23/03/2021 |
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On Tuesday, Fed Chairman Powell and Treasury Secretary Janet Yellen will appear before the U.S. House Financial Services Committee. In prepared remarks, Powell said the U.S. economy was “improving a lot,” but the recovery was “far from complete.” He noted that the Fed “will continue to provide the economy with the support it needs for as long as it needs it.”
Ten-year treasury yields fell below 1.7% on Monday, after rising to 1.757% on Thursday. Early Tuesday, the 10-year Treasury yield further eased to 1.661%.
Among exchange traded funds, the Innovator IBD 50 (FFTY) fell 0.6% on Tuesday. The Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) lost 0.4% on Tuesday. Meanwhile, the SPDR S&P 500 ETF (SPY) fell less than 0.1%.
Market shares: Nasdaq re-tests key level
Amid the current rise in the stock market, the Dow Jones industrial average and S&P 500 indices hit two-day losing streaks with modest gains on Monday.
Meanwhile, tech giant Nasdaq is once again trying to seize its main 50-day moving average line, but fell short on Monday. Last Thursday, the Nasdaq composite gave up the key level. The Nasdaq will have to overcome this important hurdle to maintain its upward trajectory. The 50 day line is a critical potential resistance level. If the Nasdaq definitely clears it, new highs may be imminent.
IBD’s market outlook was upgraded to ‘confirmed rise’ on March 10, as the Dow Jones industrial average hit new highs.
The big picture of Monday said: “The Nasdaq climbed 1.2%, a good follow-up to Friday’s rising price reversal. But a late swoon cost the index nearly half of its gains for the day, a ‘the confirmed rise in the stock market is still delicate. composite closes just below its 50-day moving average after peeking above it earlier in the day.’
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Dow Jones shares: Boeing
Within the Dow Jones industrial average, Boeing is once again in the buying range above a 244.18 buy point in a cup base, according to the IBD MarketSmith chart analysis.
Shares fell 1% on Tuesday.
Chip supplies to check: Applied materials, Nvidia
Chip stocks are still some of the best tech names in the current stock market. The VanEck Vectors Semiconductor ETF (SMH) was a new IBD SwingTrader addition on Monday amid a 2.3% rise. The ETF fell 0.9% on Tuesday morning.
Applied material continues to bounce back from its 50-day support level. Shares fell 0.6% on Tuesday and are up just 4% from new highs.
ASML jumped above its 50-day line on Monday, but fell about 1.4% on Tuesday. Shares are off a potential base in week six. The minimum length of a cup bottom is six weeks, so a new point of purchase may arise at the end of the week.
Qorvo gained support on its 50-day line on Friday and continued its setback on Monday with a rise of 1.9%. Shares closed at a 191.93 buy-in, while an early entry exists at 185.96. Early Tuesday, the Qorvo share fell 0.9%.
Recent IBD Stock Of The Day MKS Instruments ended just below its 177.46 buying point amid the 2.4% gain. The buying zone of 5% rises to 186.33. On Tuesday morning, the stock fell 1.3%.
According to IBD Stock Checkup, MKSI shares have a perfect 99 IBD Composite Rating. The IBD Composite Rating helps investors measure the quality of the fundamentals and technical benchmarks of a stock.
Chip giant Nvidia rose 0.5% on Tuesday. The graphics chip maker may be on the right track for a new base, but it’s a little too early for a regular purchase. The outlook for the stock will be a strong day to regain the 50-day line.
Shares near buying zones: Alphabet, Wayfair
IBD Leaderboard shares Alphabet completed a five-week flat base on Friday, creating a new buying point at 2,145.24, according to IBD MarketSmith chart analysis. Shares are about 6% lower than the new entry. GOOGL shares rose 0.3% on Tuesday.
According to Leaderboard’s comments, “Alphabet has made better progress in recent times than other big capital technology techniques. Support at the 21-day line is the current chart action. The last base was the second phase.”
Monday’s IBD 50 Stocks To Watch choice, Wayfair, tries to break past a 343.09 buy point in a cup with handle. Shares rose 0.3% on Tuesday and are within buying range.
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Tesla Stock
Tesla shares reversed from early gains to lower rand on Tuesday morning. The stock rose 2.3% on Monday after Cathie Wood’s ARK Invest announced its new price target of 3,000 by 2025.
Shares in Tesla fell about 26% from their 52-week high on Monday. Tesla shares may form a new base, but it is too early for a new risk-optimal buying point.
On February 22, Tesla broke through its most important ten-week moving average line, a critical support level. On January 25, Tesla shares reached a record high of 900.40, after climbing to 93% from a 466 buy point in a cup with handle.
Dow Jones Leaders: Apple, Microsoft
Among the top Dow Jones shares, Apple fell 0.6% on Tuesday, threatening to return a share of Monday’s 2.8% gain. Apple shares are returning from its long-term 40-week line and may soon try to get its ten-week line back.
On February 18, Apple shares caused the loss-cutting selling rule of 7% -8% when it dropped more than 7% below the 138.89 buy point in a handle with a cup.
Meanwhile, software giant Microsoft rose 0.8% on Tuesday, moving further above the main 50-day high. Shares are back above their 232.96 buying point and approaching a 246.23 buying point in a new flat base.
Follow Scott Lehtonen on Twitter @IBD_SLehtonen for more information on growth stocks and the Dow Jones industrial average.
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