Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, were all the way higher late Monday as Treasury yields fell from recent highs. Technical stocks sold sharply on Monday as Apple fell more than 4%, while Tesla shares dipped nearly 6%. Former Stitch Fix hot stock plunged more than 20% into overnight trading.
X
On Monday, the Dow Jones industrial average rose 1%, or 306 points. The blue disc index reached a record high before lowering profits. The S&P 500 slipped 0.5%, while the technically heavy Nasdaq Composition tumbled 2.4%.
Among the Dow Jones leaders, appeal (AAPL) sold 4.2% on Monday, while Microsoft (MSFT) has fallen by 1.8% in today’s stock market. Upside down, Disney (DIS) increased by 6.3%, while Visa (V) is in the buying range above a new buying point.
Tesla (TSLA) extended a losing streak to five sessions on Monday with a dip of 5.8%. After the close Monday, Hide fix (SFIX) reported mixed fiscal Q2 results.
Among the top stocks to watch, Alphabet (GOOGL), Polaris (PII) and Westlake Chemical (WLK) is keeping up well with the current stock market correction.
Microsoft, Polaris and Tesla are IBD Leaderboard shares. Alphabet was in the Stocks Near A Buy Zone column this week. Westlake was Monday’s IBD Stock Of The Day.
Dow Jones Futures: Yields Fall
Following the close of the stock market, Dow Jones futures rose 0.6%, while S&P 500 futures rose 0.8% at fair value. Nasdaq 100 futures contracts advanced 1.15% to fair value. Remember that trading Dow Jones futures and elsewhere does not necessarily actually trade in the next ordinary stock session.
US stock market overview today |
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|---|---|---|---|---|
| Index | Symbol | Price | Profit / loss | % Change |
| Dow jones | (0DJIA) | 31801.91 | +305.61 | +0.97 |
| S&P 500 | (0S & P5) | 3821.22 | -20.72 | -0.54 |
| Nasdaq | (0NDQC) | 12609.16 | -310.99 | -2.41 |
| Russell 2000 | (IWM) | 218.74 | +1.03 | +0.47 |
| IBD 50 | (FFTY) | 42.78 | -0.75 | -1.72 |
Last updated: 16:44 ET 20/08/2021 |
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Treasury yields for ten years rose to 1.606% on Monday before closing at 1.596%. The yield for ten years traded about 1.573% overnight.
On Saturday, the Senate passed the $ 1.9 billion Biden stimulus plan. Steny Hoyer, leader of the majority of the House, said the House plans to vote Tuesday on the Senate version of the stimulus plan. Then President Joe Biden will sign.
Among exchange-traded funds, the Innovator IBD 50 (FFTY) fell 1.7% on Monday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) fell 2.8%. Meanwhile, the SPDR S&P 500 ETF (SPY) fell 0.5%.
Stock market correction
On March 4, the major stock indices sold strongly, while top-growth stocks also crumbled. The Nasdaq fell lower than last week, closing at its lowest level since January 4 and turning negative for the year. The technology-heavy composition declined by 1.3% in 2021 after rising to 1% from January 1 to its record high of February 16.
IBD’s market outlook was downgraded to ‘corrective market’ on 4 March. During periods of severe stock market weakening, investors need to invest lightly – or even in 100% cash – until a follow-up day. Follow-ups indicate a new potential market development and give the green light to start buying shares again.
Use the pause as an opportunity to break spiritually; however, do not turn on. Look out for the following leaders. One of the best ways to identify the next cycle of leading stocks during stock market corrections is to use the relative strength line. The RS line measures the price performance of the stock against the S&P 500. If the stock performs better than the broader market, the RS line moves upwards. If a stock performs worse than the broad market, the line will show lower.
Friday’s big picture said: ‘After a morning storm plunged the Nasdaq to a loss of 2.6%, buyers re-entered the market in the late morning trading session and the largest stock indices ended with a rising profit. ‘ Check out the IBD’s The Big Picture for more comment on the stock market.
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Bitcoin price
Bitcoin traded near the highest sessions late Monday, as it was briefly $ 54,000. The price of Bitcoin, according to CoinDesk, traded around $ 53,700 in shares.
The price of Bitcoin peaked on February 21 and was $ 58,332.
The Grayscale Bitcoin Trust (GBTC) ETF advanced 5.8% on Friday and found support on its 50-day moving average line. The Bitcoin tracking ETF hit another 3.65% on Monday.
Dow Jones shares: Disney, Visa
Within the Dow Jones industrial average, Disney shares rose more than 6% after California indicated that Disneyland and California Adventure could reopen on April 1.
Shares moved past a buy point of 183.50 in a flat base outside the buying zone.
Visa shares are in the buying range past a 211.69 buy point in a cup with handle after a February 23 outbreak, according to the IBD MarketSmith chart analysis. The buying zone of 5% rises to 222.27.
Shares rose 2.3% on Monday and remain within the buy range.
Shares to watch: Alphabet, Polaris, Westlake
FANG shareholder Alphabet is keeping up with the recent weakness of the stock market. Shares remain expanding from a buyout of 1,843.93 in a flat base and are about 2% of a 2 145.24 entry in a three week tight pattern.
Shares fell more than 4% on Monday, but remain above their recent lows.
Polaris broke past a 129.10 buy point on a flat basis on Friday with a rise of 5.7%. Shares are in the buying zone of 5% ending at 135.56. Polaris shares rose 3.7% on Monday.
According to IBD Stock Checkup, Polaris shares show a solid 90 out of a perfect 99 IBD Composite Rating. The IBD Composite Rating helps investors measure the quality of the fundamentals and technical benchmarks of a stock.
Westlake Chemical, Monday’s IBD stock of the day, cleared a 90.46 buying point amid the 4.1% advance on Monday. Shares ended in the 5% buying zone standing at 94.98 above.
Westlake was added to the IBD Leaderboard on Monday. According to the Leaderboard comment: “The stock’s last base is a second phase, and the relative strength line is reaching new highs as the stock breaks out. Both are positive elements for the chart.”
Stock Market Earnings: Stitch Fix
After the end of Monday, Stitch Fix reported a loss of 20 cents per share. But sales missed consensus targets. The company reported revenue of $ 504.1 million, less than the analysis estimate of $ 512.2 million.
Stitch Fix shares fell more than 20% on Monday. The stock ended below its 50-day high on Monday, about 40% lower than the 52-week high.
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Tesla Stock
The Tesla share extended a losing streak to five sessions on Monday, down 5.8%. Shares may form a new base, but it is too early to identify a new entry.
On February 22, the leader for electric cars broke through its key 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. Shares are about 37% less than the everyday high.
Dow Jones Leaders: Apple, Microsoft
Among the top Dow Jones shares, Apple sold 4.2% on Monday. Apple stock remains below its 10-week line, but a strong setback above the level will be positive for the stock’s outlook.
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, Microsoft fell 1.8% on Monday. The stock remains below its 232.96 buying point and falls below the 50-day line again.
Follow Scott Lehtonen on Twitter @IBD_SLehtonen for more information on growth stocks and the Dow Jones industrial average.
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