Dow Jones futures rose higher early Wednesday, while S&P 500 futures and especially Nasdaq futures fell as Treasury yields reached 13-month highs ahead of this afternoon’s Fed announcement.
X
The stock market rally ended mixed yesterday after the Nasdaq closed the intraday highs well. Plug power (PLUG) and CrowdStrike shares sold the major overnight occupants of the shares.
CrowdStrike (CRWD), Coupa software (COUP), Smartsheet (SMAR) and Lennar (LEN)’s headline earnings late Tuesday with Chinese e-commerce giant Pinduoduo (PDD) reported early Wednesday. Plug Power stock plunged into accounting problems.
Microsoft Stocks, FMD instruments (MKSI), Applied materials (AMAT) and appeal (AAPL) iPhone chipmakers Qorvo (QRVO) and Skyworks Solutions (SWKS) flashed all purchases at least intraday.
The manufacturer of the chip equipment MKS Instruments broke out after a buying point on Tuesday. The AMAT share in the chip acceleration resulted in an early entry, along with wireless disk makers Qorvo and Skyworks Solutions.
Microsoft (MSFT) rose and flashed additional buy signals. Google Parent Alphabet (GOOGL) has also climbed slightly and is possibly workable. Apple stock and Facebook (FB) has risen, but may require longer repairs.
Amazon.com (AMZN) closed near its lows and stuck around its 200-day line. Tesla (TSLA) struck resistance and withdrew, still well below the 50-day line.
All of these stocks came from a high, with a low decline in the near session as Nasdaq lost steam.
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Plug in power supply dives
Following the closure, Plug Power said it would need to review 2018 and 2019 financial statements, as well as quarterly statements for 2019 and 2020. The fuel cell company mentions accounting errors related to non-cash items, including some costs. But it is said there is no misconduct. PLUG shares fell 16% in pre-trading. Shares fell 8.1% on Tuesday, reaching resistance against the 21-day line.
Important earnings
CrowdStrike’s earnings and revenue were better than expected, while the cybersecurity leader also led higher. CRWD share rose 3% early Wednesday. Shares resistanceed on the 21-day line on Tuesday and reversed lower for a loss of 2.1%.
On top of that, the coupa revenue and sales have gained prestige. COUP shares rose lower in the trading market after rising late Tuesday. Shares fell 3.5% on Tuesday.
Smartsheet earnings and revenue beat forecasts. SMAR share rose 2% before the opening date. Shares rose 1.4% on Tuesday to 68.71, supporting key levels intraday.
Pinduoduo reported a smaller-than-expected loss while revenue rose 163%, well above estimates. PDD shares lost 4% early Wednesday after rising 1.1% to 160.89 on Tuesday.
CRWD shares, Coupa shares and Smartsheet, along with Pinduoduo, are former leaders who have sold sharply in the recent technology sell-off. They all closed below their 50-day moving averages, with COUP stock below the 200-day line.
Lennar’s earnings also exceeded the analysis estimate. LEN shares rose lower in forex trading. Shares fell 1.5% to 88.71. Lennar shares are in a consolidation next to a previous base for a few weeks. A move above last week’s high of 92.85 – the top of a quasi-handle – could provide an early entry.
Google shares and Microsoft is on IBD Leaderboard. AMAT shares and Google are on SwingTrader and the Big Cap 20. MSFT shares are an IBD long-term leader. Google, SWKS and TSLA shares are on the IBD 50. MKSI shares were Tuesday’s IBD stock of the day.
Fed meeting in focus
The Federal Reserve ends its two-day policy meeting on Wednesday with an announcement at 2 p.m. ET. Investors will seek clarity from central bank and Fed chief Jerome Powell on inflation and rising Treasury yields, which have hit growth stocks. Will the Fed decide to revive Operation Twist to reduce the Treasury’s long-term returns, or take a step in that direction? Although the Fed has said it is far from even selling bonds, will policymakers be optimistic about the economic outlook and worry traders?
Dow Jones Futures Today
Dow Jones futures rose 0.1% to fair value. S&P 500 futures fell 0.3%, while Nasdaq 100 futures retreated 1.1%.
The ten-year treasury yield rose by a number of basis points to 1.67%, at its highest peak in 13 months.
Remember that overnight actions in Dow futures and elsewhere do not necessarily translate into stocks in the next regular session.
Join IBD experts and special guest David Ryan while analyzing stocks in the stock market on IBD Live.
Coronavirus News
Coronavirus cases worldwide reached 121.39 million. The deaths from Covid-19 were 2.68 million.
Coronavirus cases in the US hit 30.23 million, with deaths above 549,000.
Modern (MRNA) started dosing children from six months to less than 12 years of age with its coronavirus vaccine in a phase 2/3 study. Modern en Pfizer (PFE) are already testing their vaccines in older children.
Stock market rally
US stock market overview today |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Profit / loss | % Change |
| Dow jones | (0DJIA) | 32824.90 | -128.56 | -0.39 |
| S&P 500 | (0S & P5) | 3962.64 | -6.30 | -0.16 |
| Nasdaq | (0NDQC) | 13471.57 | + 111.86 | +0.09 |
| Russell 2000 | (IWM) | 230.44 | -3.98 | -1.70 |
| IBD 50 | (FFTY) | 47.21 | -0.25 | -0.53 |
Last updated: 16:06 ET 3/16/2021 |
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The stock market rally closed with minimal changes, but it was a disappointing day for the Nasdaq and growth names.
The Dow Jones industrial average fell 0.4 percent on Tuesday. The S&P 500 index fell 0.1%. The Nasdaq Composite rose 0.1%, rising 1.2% intraday and turning short negative. The small-cap Russell 2000 sank 1.7%.
The ten-year treasury yield rose 1 basis point to 1.62% after falling to 1.585% intraday.
Finance, airlines and commodity games retreated while growth names faded to close mixed.
Among the best ETFs, the Innovator IBD 50 ETF (FFTY) lost 0.5%, while the Innovator IBD Breakout Opportunities ETF (BOUT) sank 0.9%. The iShares Expanded Tech-Software Sector ETF (IGV) fell 0.5%, with MSFT shares as its top stake. The VanEck Vectors Semiconductor ETF (SMH) rose 1.1%, with Qorvo and SWKS shares both being significant components.
Due to more speculative story shares, Ark Innovation ETF slipped 1.7% and Ark Genomics ETF 2.2%. Tesla shares are the best investment in Ark Investments’ ETFs. Ark Invest bought some PDD shares before its earnings.
Technical Titans
Microsoft shares rose 1.2% to 237.71, falling back from their 21-day exponential moving average and 10-week weekly. Shares, according to MarketSmith’s analysis, are still trading at 232.96. MSFT shares are on track to have a flat base by the end of this week with a subscription of 246.23.
Google shares rose 1.4% to 2,083.89, falling back from the 21-day line. Shares rose 2111.68 intraday, just below many recent highs. Investors can enter early at current levels or higher than Tuesday’s highs. The official buying point is 2,145.24 according to a three-week tight pattern – or a flat base after this week.
Apple stock climbed 1.3% to 125.57, above its 21-day line and off a downward trend. But the iPhone giant is still lower than the 50 days that are now declining.
Facebook share rose 2% to 279.28, continuing a setback of its 10-, 21-, 50- and 200-day lines. FB shares managed to hit a trend line that started with the August 26 highest score of 304.67. Investors may buy Facebook if it is higher than Tuesday, but they may want to wait for shares to reach the January 28 high of 286.79 at least.
The share in Amazon rose by 0.3%, but at 200 days resistance.
The Tesla share fell 4.4% to 676.88, reaching resistance on the 21-day line. It is still significantly below its 50-day line and the January 25 peak of 900.40. The TSLA share fell 3% early Wednesday.
It could just be a breather for the Tesla share, which rose 16% last week. But maybe not.
While TSLA shares are struggling to jump back, Volkswagen (VWAGY) skyrocketed when it announced major EV targets in 2021 with huge battery investments. The VWAGY share rose 10% on Tuesday to the best level since 2009. The shares have risen 57% so far in 2021.
Chip Stocks In Sale Zones
The MKSI share rose 3.4% to 177.91, just above a lower-bottomed 177.46 buying point after reaching 182.14 intraday.
The AMAT stock rose 3.15% to 118.50, falling back from its 21-day line and breaking a short downtrend. That’s 7% above its ten-week line, still within the range.
The Qorvo share rose 1.3% to 180.54, near the low of the day after reaching the intraday of 185.76. Shares closed above a downtrend and are just 3.1% above the ten-week average. However, investors will want to wait for the Qorvo share to rise again from the March 2 high of 182.75. The 5G disk maker also has an official 191.92 consolidation buying point.
SWKS shares rose 1.3% to 181.04, closing near the lowest session. But stocks broke a downward trend and continued a setback of the 10-week line, just 3.6% above the key level. The wireless chip maker has maintained well in the tech sell-off, not losing sight of its 50-day / 10-week weekly.
Analysis of stock market marches
The Nasdaq has moved a little further than the 50-day line, but the intraday highs have closed well. More technological stocks, especially chips, are starting up again.
But valued or speculative growth names generally have more work to do. These include Tesla shares, Plug Power, CrowdStrike and others that have recovered recent lows, as well as names like Zoom video (ZM) who did not bounce much at all. In general, investors want to focus on stocks that are above their 21-day and 50-day averages.
Meanwhile, the Dow Jones and Russell 2000 fell, but after long winning streaks.
Many plays reopening the economy, including travel, energy and mining, withdrew on Tuesday. But overall, the sector is still doing well.
Ideally, the stock market will show broad leadership in a range of growth and real economy sectors. But it could be that the market will turn to technology again, or that techniques will falter again.
Investors should take advantage of the resurgent rise in the market, with many quality stocks breaking out or offering early entries. In this broad but uncertain rise in the stock market, it is especially important to diversify your portfolio. Buy as usual leading stocks from leading sectors, but make sure there is a variety. This will help you avoid large portfolio losses while also keeping up with different sectors.
Read the big picture every day to keep up with the market direction and leading stocks and sectors.
Please follow Ed Carson on Twitter @IBD_ECarson for stock market updates and more.
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