The Nasdaq sold after ten-year treasury yields rose to the highest levels of the year following the $ 1.9 billion Biden stimulus plan. However, the Dow Jones industrial average continued to rise with Boeing (BA) the striking blue chip artist. Meanwhile, Warren Buffett stocks StoneCo (STNE) has fallen heavily on poor earnings.
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appeal (AAPL) and Intel (INTC) was one of the losers of the day, while Tesla (TSLA) and Nine (NIO) facilitates after a setback.
Treasury yields for ten years have risen to 1,635%, the highest level of the year to date. The 30-year treasury bonds also rose. Higher current inflation and higher expected inflation cause yields to rise. This is because investors will demand a higher return to compensate for inflation risk.
Some economists have warned that the $ 1.9 billion stimulus bill, signed by President Joe Biden on Thursday, could fuel inflation. Oanda senior market analyst Edward Moya believes Federal Reserve Chairman Jerome Powell may be forced to adopt a more proactive tone at the Federal Public Market Committee’s policy meeting next week.
“Before today, it appears that yields are stabilizing and many analysts expect that next week they will be an easy FOMC policy meeting that will deliver much of the rhetoric of Fed Chairman Powell,” he said in a note to customers. . “If bond market sales increase until the FOMC decision on March 17, the Fed will eventually have to push back against the shift in treasury yields.”
Nasdaq diving; S&P 500 slips
The Nasdaq fell by about 1%, although it was lower. China stock JD.com (JD) was the weakest in the composition, down nearly 7%. DocuSign (DOCU) was another big loser.
The S&P 500 fell 0.2%. Ulta Beauty (ULTA) fell almost 9% due to poor earnings. The next worst performer was PerkinElmer (PKI), which achieved a more moderate decline of just over 3%.
US stock market overview today |
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|---|---|---|---|---|
| Index | Symbol | Price | Profit / loss | % Change |
| Dow jones | (0DJIA) | 32670,61 | +185.02 | +0.57 |
| S&P 500 | (0S & P5) | 3931.27 | -8.07 | -0.20 |
| Nasdaq | (0NDQC) | 13269.53 | -129.14 | -0.96 |
| Russell 2000 | (IWM) | 232.92 | +0.70 | +0.30 |
| IBD 50 | (FFTY) | 46.96 | -0.18 | -0.38 |
Last updated: 13:22 ET 3/12/2021 |
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The volume was lower compared to the same time Thursday. Trading decreased by 6% on the Nasdaq and by 16% on the NYSE.
The S&P sectors were mixed, with financial leading. The biggest backlogs were technology and communications services.
Growth stocks were also forced lower, with the Innovator IBD 50 ETF (FFTY) losing about 0.4%.
Boeing climbs to help lift Dow Jones
The Dow Jones Industrial Average was the most important index, rising 0.6%
Boeing was the top performer, rising more than 6%. It rose from the buying zone after hitting a buying point of 244.18, the MarketSmith analysis shows. However, earnings remain weak.
Apple shares were one of Dow’s biggest losers, falling more than 1%. Apple has slipped closer to the 200-day line and is below the 50-day line. The relative strength line for Apple shares should improve as it has fallen since the end of January.
Intel was still lagging behind after dipping more than 1%, but the Deafest fared the worst Salesforce.com (CRM). The latter fell by almost 2%
Warren Buffett’s shares fell
StoneCo continues to fall below its 50-day moving average. The stock fell after Q4 earnings were reported down 8% to 22 cents a share.
Warren Buffett is a big supporter of StoneCo. His Berkshire Hathaway (BRKB) holds 14.17 million shares, representing more than 6% of all StoneCo shares.
Bank of New York Mellon (CC) manages to pass a buy point at 46.94, but is quiet at that level. The stock boasts a poor IBD Composite Rating of 49, with both earnings and stock market performance. Banks struggle to extract profits when interest rates are low.
Tesla Stock, Nine Stock Stall
Tesla shares came to a halt again after Thursday’s gains. It was about 2% lower. It is nonetheless on course to make a weekly profit of about 15%. Tesla’s RS line improves after a recent dive.
Tesla stock has already crashed through its 50-day moving average, but the 200-day line was good. It has an overall rating of 94. The recent poor performance of Tesla shares has lost its place on Leaderboard.
Chinese rival Nio also slipped, though it compared losses. It is about 1.5% lower. It’s on course to get about 19% for the week. The Nio stock is still below the 50-day moving average, but is now not at all off its 200-day line. The stock collapsed after a 57.30 turnout failed.
Follow Michael Larkin on Twitter @IBD_MLarkin for more information on growth stocks and analysis.
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