The shares fell against the starting clock, and mixed quickly on Thursday as rising bond yields, disappointing unemployment data and a rise in March’s production data fueled troubled early trading. The new issue Upstart Holdings and the IBD 50-share Williams-Sonoma increased profits. Nike today approached a buy point on the Dow Jones ahead of its third quarterly report to be released after the close.
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The Dow industrials shook off opening losses and today defended a 0.1% increase in the stock market. The S&P 500 fell 0.5%, while the Nasdaq Composite fell 1.4% lower.
Utilities were in motion early on, such as PPL (PPL) jumped more than 5% to lead the S&P 500, after agreeing to sell its UK unit, the country’s largest power supplier National Grid (NGG) in a transaction of $ 10.89 billion. National Grid shares rose 1.4%.
Dollar General (DG) weighed in at the bottom of the S&P 500, down more than 5% following its Q4 report.
MercadoLibre (MELI) hung out with Zoom video (ZM) at the bottom of the Nasdaq 100. Nuts Excelon (EXC) is traded at the top of the index.
Among regional bank ETFs, the SPDR S&P Regional Banking ETF (KRE) and the iShares US Regional Banks ETF (IAT) each rose more than 2%.
Retail capitalization rose lower in early trade, with Russell 2000 trading down 0.6%, although biotechnology Vericel (VCEL) and Jewelers with stamps (SIG) jumped near the top of the index. The Vanguard Russell 2000 Index Fund ETF shares (VAT) fell 1%.
Banks rate Dow Jones today as yields yield
JPMorgan (JPM) and Goldman Sachs (GS) caught up with the Dow Jones today, each acting earlier by more than 2%. The JPMorgan share is being extended after clearing a twelve-month base in mid-February. At the beginning of February, Goldman Sachs jumped back from the support of ten weeks and achieved an advance of 17.8% for the month. Shares have risen 8% so far in March.
Bonds sold lower quickly, causing the ten-year treasury yield to rise sharply. Treasury yields jumped by 9 basis points to 1.74%, the highest level since mid-January 2020. Yields rose rapidly from record lows during the pandemic, by about 0.50% in August.
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Fed Chairman Jerome Powell indicated Wednesday that the Fed has no need to push back against current interest rate hikes. The Fed maintains its current monthly effect on the purchase of $ 80 billion in treasury bonds, and $ 40 billion in mortgage bonds.
Yields approached the level of pre-pandemic early Thursday, starting at around 1.8% in 2020, down from around 2.7% a year earlier.
Jobless Claims Rebound, Philly Fed Spikes, US / China Meeting
Initial applications for unemployment claims rose to 770,000 again in the week ending March 13, the Labor Department reported. This was a large increase compared to 712,000 claims filed the previous week, which disappointed the expectation for a decrease to 700,000.
The Philadelphia Federal Reserve’s production outlook survey, which measures mid-Atlantic production, rose to a 50-year high of 51.8 in March. The increase blew away expectations for a modest rise to 24.. The new orders jumped from 28 to 50 for the month, also a 50-year high. However, input prices also rose, with the index paid from 54.4 to 75.9, the highest level since 1980.
Shares in China could have some impact later in the session as President Joe Biden’s government approaches its first personality test with China in a meeting in Alaska today. Foreign Minister Antony Blinken and National Security Adviser Jake Sullivan will meet with Chinese Foreign Minister Wang Yi and Yang Jiechi, a member of the ruling Communist Party.
The Chinese say they will demand that the Trump restrictions on Chinese trade be lifted. The U.S. delegation plans to address issues related to the regulation of Hong Kong and the South China Sea, as well as cyber security and intellectual property issues.
Earnings: Williams Sonoma, Accenture Eye Buy Points
Earnings news had an impact on early trading, with Canadian solar power (CSIQ) and Signet Jewelers each trade at 10% and 8%, respectively, after reporting results. On the downside, Dollar General shook off more than 4% after earnings and guidance did not live up to expectations.
December new offer Upstart Holdings (UPST) bolted 50% higher after achieving the revenue and earnings analysis targets in the fourth quarter, leading the first quarter and full-year results higher than expected. The stock is deep in a five-week consolidation, with 42% below the February 11 high, and more than 200% above the December 16 price.
IBD 50 stock Williams-Sonoma (WSM) rose 15% after reporting higher-forecast earnings and accelerated sales growth in the fourth quarter. The gap-up gain sent the stock at 151.26 in a buy price above a head-to-head buy point.
Management consultant Accenture gained 1.1% after reaching a solid fiscal benchmark in the second quarter, announcing that it would return $ 5.8 billion in dividends and share buybacks. The stock ended less than 3% below a buying point of 271.28 on Wednesday in a flat base of 13 weeks.
Accenture stock forms a handle, but the handle is only four days long, less than the five days needed to deliver a valid purchase point.
Bitcoin rebounds
Bitcoin, according to CoinDesk, rose to nearly $ 58,000 on Tuesday after falling below $ 54,000 on Tuesday. The cryptocurrency climbed to a record high of $ 61,556 on March 11th.
Among Bitcoin-related stocks, Marathon Patent Group (MARA) decreased by 3.6%, while MicroStrategy (MSTR) traded 2.7% in the red.
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IBD Leaderboard stock PayPal Holdings (PYPL) decreased by 2.1%. PayPal shares have been affected by the price changes of Bitcoin since October, when the company launched a cryptocurrency trading service that trades on Bitcoin. The stock is feeling resistance at the bottom of its ten-week moving average as it tries to start on the right side of a five-week consolidation.
Covid vaccine: 12% of US vaccinated
The Centers for Disease Control & Prevention reports 147.59 million doses of vaccine distributed in the United States, with more than 113 million shots administered so far. Persons who received at least one shot represent 22.2% of the total population and 12% of the population have so far been fully vaccinated.
Dow Jones Today: more than 33,000, the Nasdaq base
The Dow industries reached their first close above 33,000 on Wednesday. The S&P 500 also reached a record high, finishing less than 1% below 4,000. The Russell 2000 sits nicely, above support and sits just below its own record highs.
For a more detailed analysis of the current stock market and its status, study the big picture.
The Nasdaq modestly improved its status this week and regained support from its composite exponential moving averages of 50 days and 21 days. A quick look at the Invesco QQQ Trust (QQQ) shows the chart finishing the fifth week from a flat base. This means a new buying point at the beginning of the week, which is planned at 338.29 – 5% above where the fund finished trading on Wednesday.
The Fed’s “no rate hikes to 2024” outlook and its GDP growth estimate, up to 6.5%, may have meant a turning point in Nasdaq consolidation on Wednesday. appeal (AAPL)’s stock climbed, restoring ten weeks of support after three weeks of tight closing. Amazon.com (AMZN) again accepted support at its 200-day line on Wednesday.
Charts of technical equities, sector funds improved
Facebook (FB) has risen nearly 6% so far this week, climbing to a handful of alternative buying points from 286.89. Leader technology giant Alphabet (GOOGL) and Microsoft (MSFT) hangs just below or above buying points.
Look at the charts of funds that represent some of the Nasdaq’s most growth-oriented segments. The VanEck Vectors Semiconductor ETF (SMH) and iShares PHLX Semiconductor ETF (SOXX) will both complete five basic bases. The Defiance 5G Next Gen Connectivity ETF (FIVG) has made a powerful bounce over the past two weeks. The Invesco Solar ETF (TAN) shows that alternative energy issues are still being hit, but the Global X Autonomous & Electric Vehicles ETF (DRIV) bounced back quickly, with its chart ahead of the Nasdaq.
Nike closes the reporting season on the Dow Jones today and delivers its fiscal results in the third quarter after the market closed. Nike shares ended within 2% of a 148.05 buying point on Wednesday in a 12-week flat base on Wednesday.
Find Alan R. Elliott on Twitter @IBD_Aelliott
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