Technical stocks led the market in sharp early losses Tuesday ahead of the testimony of Senate Fed Chairman Jerome Powell. The $ 1.9 billion federal stimulus package moved forward late Monday in the House, helping to raise the price of oil and raise some pandemic reopening plays. Revenue services ignited ZoomInfo and sent Nexstar Media into a buying spree. Meanwhile, Home Depot swung low to the Dow Jones today following its fourth-quarter report.
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The Nasdaq Composite has 3.5% at the start clock as Baidu (BIDU) and Tesla (TSLA) dropped more than 11% at the start clock. The S&P 500 had a loss of 1.4%. The Dow industries shook off more than 200 points, by 0.7%. Procter & Gamble (PG) rose to the top of the Dow Jones today and rose nearly 3%.
Etsy (ETSY), Tesla and Enphase Energy (ENPH) had the lowest trading among S&P 500 shares. CBRE Group (CBRE) and Extra storage space (EXR) led, with more than 5% each on the news service.
Earnings News: ZoomInfo Spikes, Nexstar Breaks Out
In earnings news, Nexstar Media Group (NXST) and IBD Leaderboard Inventory ZoomInfo (ZI) rose after reporting the results late Monday.
ZoomInfo rose more than 10% after gaining analysts’ revenue and earnings views in the fourth quarter late Monday. At least four analysts raised price targets on the stock early Tuesday. Piper Sandler weighed in at the top of the list with a price target of 70. ZoomInfo shares were volatile, reversing an 11% advance from an outbreak on February 3 and falling below the 53.18 buying point – as well as supporting its 21-day exponential moving average.
Technically speaking, the withdrawal caused a sell rule, but it stopped with the automatic stop loss rule. Tuesday’s pre-emergence in the market indicates that the stock is regaining the buying point in early trading, a valid buying opportunity. However, investors need to be sure of the shifting status of the rising trend, especially before diving into volatile young stocks with recent initial offer.
Television broadcaster Nexstar Media Group, which is based in Texas, achieved 4.6% after its healthy report on the fourth quarter. The move sent shares in a buy range above a 131.10 buy point in a rising 12-week basis. The buy range is 137.66.
Dow Jones Today: Home Depot breaks support
Home Depot (HD) crumbled 5% on the Dow Jones today, despite showing strong earnings and revenue in the fourth quarter late Monday. The company also increased its quarterly dividend by 10% to $ 1.65 per share.
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The decline boosted Home Depot’s inventory to fall below its ten-week moving average. The stock has been swinging above and below the line since August, forming a flat 26-week base in the process. The base has a 293.05 buying point. Shares ended 6% below the subscription on Monday.
Stimulus for house floor mood
In Washington, the House Budget Committee on Monday, after a 19-16 vote, approved President Joe Biden’s $ 1.9 billion US bailout plan. The Republicans were against it. The move proposes the package for a vote on the floor later this week. House Democrats aim to have the package ready for the president’s signing before the current supplementary unemployment benefits expire on March 14.
Federal Reserve Chairman Jerome Powell is due to address the Senate Committee on Banking, Housing and Urban Affairs at 10 p.m.
Mortgages, copper flat; Oil at 13-month high
Among other US markets, bonds flattened, with the 10-year yield at 1.36%, rising sharply from lows around 0.50% in August. Yields started at around 1.8% in 2020, up from 2.7% a year earlier.
The oil price has risen, with West Texas Intermediate crude oil up 0.5% to above $ 62 a barrel, and at its highest level since January 8, 2020. Brent’s European Brent standard has risen to nearly $ 66. Buyer also broke its rally, with futures trading close to $ 4.15 per pound, the highest point since July 2011.
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Bitcoin drops below $ 46,000
Bitcoin recovered early losses on Tuesday after falling below $ 46,000 to reach its lowest level since February 11, according to CoinDesk. Bitcoin climbed to a record high of more than $ 58,000 on Sunday.
Among Bitcoin-related stocks, Marathon Patent Group (MARA) 15% tank, while MicroStrategy (MSTR) decreased by 7.4%. The Amplify Transformational Data Sharing ETF (BLOCK) fell 10.5%.
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IBD Leaderboard stock PayPal Holdings (PYPL) decreased by 6.5%. PayPal shares have been somewhat affected by Bitcoin price fluctuations since October, when the company launched a cryptocurrency trading service that trades on Bitcoin. The loss shows PayPal shares falling below the 21-day moving average, and a possible support test on its 10-week line.
Coronavirus update: 41-day decline ends
As the cumulative death toll from the coronavirus pandemic in the U.S. rose above 500,000, the seven-day average for new Covid-19 cases showed higher daily in the U.S. and worldwide for the first time in 41 days. New cases reported worldwide, averaging over the past seven days, increased to 360,341 on Monday, up more than 50% from the high of 745,985 recorded on January 11th.
In the US, the seven-day average for newly reported cases rose to 69,528 on Monday, still more than 72% lower than the high of 255,258 reached on January 11, according to Worldometer.
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Deaths also ticked higher for a second day. The average of seven days for deaths reported daily rose to 2,042 on Monday. The daily average deaths reported fell 25 days after peaking at 3,447 on January 26th.
The Centers for Disease Control & Prevention reports that 75.2 million doses of vaccine have been distributed so far in the US. About 64.177 million doses have been administered, meaning that just under 20% of the U.S. population has received at least one shot so far.
Among related shares, Co-diagnostics (CODX) and Modern (MRNA) received early hits, with 4.1% and 1.5%, respectively. No clear news drives the move.
Dow Jones Today: Salesforce Earnings
IBD Long Term Leader Salesforce.com (CRM) will be the last earnings report for the regular season under Dow Jones equities. It will report its earnings in the fourth quarter after closing Thursday. Salesforce shares fell 2% today in early Dow Jones trading.
Salesforce stock climbs to the right of a hilltop formed after a failed November breakthrough from a double bottom. MarketSmith set the buying point at 271.02 and Salesforce shares were about 10% below the point at the end of trading on Friday.
Find Alan R. Elliott on Twitter @IBD_Aelliott
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