The Dow Jones industrial average gave up ground, even as the Nasdaq rose late Friday. Intel (INTC) was one of the best performing blue chips, but bears were wasted Visa (V) in the midst of a Department of Justice investigating possible competitive competition. Nike (NKE) also struggled with mixed earnings.
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Banks dragged down after the Federal Reserve’s decision to extend an exemption from the pandemic that lowered bank capital requirements. Ranking stock Wells Fargo (WFC) was slapped lower. True fellow Leaderboard member Williams-Sonoma (WSM) continued to move clumsily.
The key 10-year yield for Treasury bonds held above the 1.7% mark, although it declined slightly. Rising returns have hurt growth stocks, and technology has suffered the most.
Fed Chairman Jerome Powell said in an opinion piece in The Wall Street Journal on Friday that the central bank is committed to an ‘all-in’ approach as it seeks to restore the economy.
Nasdaq, S&P 500 Push Higher
The Nasdaq rose by about 0.8%, although it is still shy of its 50-day moving average. Home exercise supplies Peloton Interactive (PTON) was the largest profit maker, rising more than 5%.
The S&P 500 also made progress, although profits declined by 0.3%. Occidental Petroleum (OXY) rose the most, by more than 6%.
The volume was higher than the same time Thursday. Trading on the Nasdaq rose by about 2% and jumped by 50% on the NYSE.
US stock market overview today |
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|---|---|---|---|---|
| Index | Symbol | Price | Profit / loss | % Change |
| Dow jones | (0DJIA) | 32753.61 | -108.69 | -0.33 |
| S&P 500 | (0S & P5) | 3925.82 | +10.36 | +0.26 |
| Nasdaq | (0NDQC) | 13224.12 | +10.95 | +0.82 |
| Russell 2000 | (IWM) | 226.98 | +1.74 | +0.77 |
| IBD 50 | (FFTY) | 46.89 | +0.54 | +1.17 |
Last updated: 14:52 ET 21.3.2021 |
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The S&P sectors were mixed, with more winners than losers. Energy and communications services took the lead, while finances lagged behind.
Small-cap capitalization ended the week with a boom. The Russell 2000 rose 0.8%.
Growth stocks also advanced, with the Innovator IBD 50 ETF (FFTY) rising 1.2%.
Dow Jones Stock Nears buy as index falls
The Dow Jones industrial average outperformed the other major indices, by about 0.3%, although it was lower.
Intel shares were among the top components on Friday, rising about 1%. The Dow Jones stock is close to its buying zone after breaking a double bottom with a buying point of 65.21. Intel shares have a composite rating of 77.
United Health (UNH), however, was the best Dow Jones stock of the day, rising more than 2%. The health insurer achieved a 367.49 buy point in heavy trading.
Nike shares were among the big backlogs after achieving mixed earnings late Thursday. It has dropped almost 3% and is now testing its 50-day moving average.
Visa stock drops on DOJ probe
The visa supply has decreased by almost 5% on the news that it is being investigated by the Department of Justice. The antitrust department asks whether Visa has limited the ability of merchants to conduct debit card transactions via card networks, which are often cheaper.
The new civil antitrust inquiry recalls the controversy over so-called network fees, which are invisible to consumers and profitable for card businesses. But it is a weight for traders, who often pass on the fees to customers in the form of higher prices.
The Dow Jones stock fell below a 211.69 buying point, which passed when it broke out of a cup-with-handle base last month.
Black eye for bank stocks on this Fed Move
Bank shares were dumped Friday after the Federal Reserve said it would not extend a coronavirus-related emergency measure aimed at making loans easier.
The expansion will, as planned, expire on March 31, despite lobbying by banks. This means that banks must include treasury and the deposits of Fed banks in the calculation of the supplementary leverage ratio, which is aimed at keeping banks’ risks in check.
IBD Leaderboard share Wells Fargo gave up nearly 3%. Bank of America (BAC) and Citigroup (C) decreased by 1%, while JPMorgan Chase (JPM) slipped about 3%.
Leaderboard inventory is this key level
Williams-Sonoma shares continued to rise, rising nearly 9%. The stock now closes at its 20% -25% profit range. The stock rose Thursday with a strong quarterly report, clearing a cup base.
Meanwhile co-furniture stock Wayfair (W) is the IBD stock of the day. It is closer to an entry at 343.09, with the buying zone extending to 360.24.
The e-commerce business performed consistently during the disruption of Covid-19, and has maintained double-digit quarterly revenue growth over the past three quarters and three-digit earnings growth.
Follow Michael Larkin on Twitter @IBD_MLarkin for more information on growth stocks and analysis.
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