The Dow Jones industrial average has climbed to a new high in the current stock market. The Nasdaq sold at a loss of more than 100 points as U.S. treasury yields began to climb again. The S&P 500 fell slightly. Over the past three hours of trading, however, the three major indices have risen higher from their intraday lows.
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Stock Market Today
The Russell 2000 Index with a small stock traded 0.2% higher. The Nasdaq composite fell 0.9%, leading the back of the market. The S&P 500 traded 0.1% lower while the Dow Jones rose 0.7%. The volume was lower on the NYSE and on the Nasdaq, compared to the same time Thursday.
The Nasdaq sold out after the ten-year treasury yield rose to its highest level of the year so far, reaching 1,635%. The 30-year treasury bonds also rose. Investors are demanding a higher return to offset the inflation risk. This is why higher current inflation and higher expected inflation may increase yields.
Recently, several economists warned that the $ 1.9 billion stimulus bill signed by President Joe Biden on Thursday could fuel inflation. It is possible that Federal Reserve Chairman Jerome Powell may be forced to adopt a more proactive tone than expected at the Federal Open Market Committee’s policy meeting next week.
In addition, the inflation measures announced by the Labor Department early Friday showed that producer prices in February were slightly warmer than expected.
Sector rotation continues
The Innovator IBD 50 ETF (FFTY) fell 0.8% on Friday. The ETF is still making a profit of more than 7% for the week. Shares in the growth stock ETF gained support again at the 50-day line on Thursday. Stocks that had the downside in the growth-focused ETF were MDC Holdings (MDC) and Dynatrace (DT), with losses of more than 4% each.
MDC Holdings is currently expanding from a cup-with-handle base with 48.62 buying points. Shares trade just below the 20% -25% profit zone. Meanwhile, Dynatrace is just expanding from the buying zone of a consolidation entry of 48.95. Shares recently received good support during the 50-day line.
Internet content, software, and chip supplies have led to the downside among IBD’s industry groups as a sector rotation away from these key industries continues to unfold. However, retailers in the electronics, aerospace and steel stocks were among the top performers.
Dow Jones Today
The Dow Jones made a solid profit because many blue chips traded higher. Stocks that turned upside down were Boeing (BA), Ruspe (CAT) and Walgreens (WBA).
Shares in Boeing traded more than 6% higher on Friday. The Boeing stock rose in a heavy volume as it traded above the buying zone from a cup base with a buying point of 244.18. According to MarketSmith, the buying zone ended at 256.28. The stock recently regained its 50-day line, a bullish sign, and is now extended.
Investors should note that the stock maintains low IBD ratings, including a 29 compound and a 60 RS rating. But as panelists noted in Friday’s IBD Live show, the fundamental turnaround in the market tends to show such rankings in the early stages of their return.
Elsewhere, shares in Walgreens rose more than 3% as the stock reached a 55.59 buy point from a cup-with-handle. The stock stays 4% away from the key buying zone. Shares also received strong support at their 50-day line last week and have been climbing ever since.
In The Dow Jones
Meanwhile, several Dow Jones technology leaders sold out Friday.
Technical giant Microsoft (MSFT), a Leaderboard member, fell less than 1% as shares remained within the buy zone of a 232.96 consolidation buy point. The stock recently found support near the 50-day moving average. Shares in Microsoft remain about 4% lower than their 52-week high.
Finally, Intel (INTC)’s stock fell less than 1%. Shares, according to MarketSmith’s analysis, continue to approach a new buying point of a massive double-bottom base. The base maintains a 65.21 entry point. Shares stay 7% away from the key buying zone.
The chart can also be interpreted as a cup-with-handle base with a proper entry at 63.64. Shares recently regained their 50-day and 200-day line.
Technical giants appeal (AAPL) and Salesforce.com (CRM) resulted in the downside among the blue chips with losses of more than 1%.
Follow Fox on Twitter at @foxonstocks for more Dow Jones and market commentary.
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