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Dow Jones Dives On Janet Yellen Warning, Stocks Sell Off As Bond Yields Rise

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The Dow Jones Industrial Average dived nearly 500 points midday Tuesday as stocks sold off on Treasury Secretary Janet Yellen’s default risk warning and bond yields rose.




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The Nasdaq sank 2.6%, the S&P 500 shed 1.8% and the Dow Jones industrials lost 1.3% in the stock market today. Small caps tracked by the Russell 2000 were down 1.8%. Volume was higher on both major exchanges vs. the same time Monday.

Among exchange traded funds, Innovator IBD 50 (FFTY) slumped 5.5%, while the Nasdaq 100-tracking Invesco QQQ Trust (QQQ)  fell 2.2%. The IBD 50 ETF, which hit a new high Thursday, fell back below a 50.06 consolidation buy point and is testing its 50-day moving average.

Rising Treasury yields are putting pressure on rate-sensitive stocks such as technology. The yield on the 10-year note rose 7 basis points to 1.56%, the highest since June.

Default Risk Fears

Late Monday, Senate Republicans blocked a bill to fund the federal government until Dec. 3 and raise the debt ceiling. Federal Reserve Chairman Jerome Powell and Treasury Secretary Yellen are testifying before the Senate Banking Committee. Yellen warned Congress must raise the debt limit by Oct. 18.

U.S. Stock Market Today Overview
Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 34413.14 -456.23 -1.31
S&P 500 (0S&P5) 4361.69 -81.42 -1.83
Nasdaq (0NDQC ) 14586.89 -383.08 -2.56
Russell 2000 (IWM) 222.34 -4.10 -1.81
IBD 50 (FFTY) 47.64 -2.76 -5.48
Last Update: 11:38 AM ET 9/28/2021

“It is imperative that Congress swiftly addresses the debt limit. If it does not, America would default for the first time in history,” Yellen said in prepared remarks. “The full faith and credit of the United States would be impaired, and our country would likely face a financial crisis and economic recession.”

The U.S. economy continues to recover from the Covid-19 pandemic, which triggered nationwide lockdowns over a year ago. Most states had relaxed restrictions as vaccinations continued to roll out and cases decreased. But cases are rapidly rising again in some places, and mask mandates are returning in some states as the delta variant spreads.

Cumulative Covid-19 cases worldwide have topped 233 million, with nearly 4.8 million deaths, according to Worldometer. In the U.S., cases are approaching 44 million with more than 709,000 deaths.

Growth Stocks To Watch

Thor Industries (THO) cruised 9% higher in fast turnover to retake its 50-day and 200-day moving average lines. The RV maker delivered fiscal Q4 earnings and revenue that topped Wall Street targets. Shares have been consolidating since May.

Over in the IBD 50, InMode (IMND), SiTime (SITM) and Global e-Online (GLBE) dived more than 10% each in heavy volume. InMode and SiTime are holding above their 50-day lines, but Global e-Online breached support.

Sprout Social (SPT), Asana (ASAN) and Snap (SNAP) were among IBD 50 stocks down more than 7% apiece. Snap cleared an 80.95 flat-base buy point on Friday, but has now triggered the 7%-8% loss-cutting sell rule from the entry.

Covid-19 vaccine maker Moderna (MRNA) dropped nearly 7% in twice normal trade to tumble below its 50-day line for the first time since May. The biotech’s stock has shaped a cup with handle, but losses this week have roiled the pattern.

IBD 50 financials were among the better performers, relatively speaking, boosted by higher bond yields. Western Alliance Bancorp (WAL) climbed 0.3%, moving to within 2% of a 109.94 entry. Jefferies Financial (JEF) gave up 0.3% and Stifel Financial (SF) fell 1.2%.

Dow Jones Movers

Salesforce.com (CRM) and Microsoft (MSFT), down more than 3% each, were the biggest blue chip losers.

Salesforce fell back below a 275.32 buy point of a cup with handle it had cleared on Thursday. The stock hasn’t triggered a sell signal.

Microsoft gapped down and fell below its 50-day line. It also undercut the bottom of a six-week flat base, but the pattern is still intact and remains well within flat-base range. Microsoft is an IBD Leaderboard and IBD Long-Term Leader stock.

Apple (AAPL), Home Depot (HD), Boeing (BA) and Disney (DIS) gave up nearly 2% apiece.

Home Depot has slipped under a 338.65 buy point of a five-week flat base, which it had climbed past on Monday. The stock is holding up well above its 50-day line.

Follow Nancy Gondo on Twitter at @IBD_NGondo

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Business

Dow Jones Futures: Market Rally Mixed As Apple Hits New High, Bitcoin Dives; Tesla Lead Five Giants In Buy Range

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Dow Jones futures tilted lower Tuesday night, along with S&P 500 futures and Nasdaq futures. The stock market rally was mixed, though Apple stock, Tesla (TSLA) and some other big-cap leaders fared well. Software and industrial names retreated. Bitcoin and other cryptocurrencies tumbled, though they and Bitcoin-related stocks such as Coinbase (COIN) pared losses somewhat.




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Coupa Software (COUP), Smartsheet (SMAR) and UiPath (PATH) headlined earnings reports after the close.

Coupa easily beat EPS views and guided higher. Smartsheet also topped while guiding fiscal 2022 EPS in line. UiPath topped views and offered in-line to slightly higher guidance. COUP stock initially surged more than 10% overnight, but pared gains to 6%. SMAR stock, slightly extended from a buy zone, fell 4% in extended trade. PATH stock tumbled 7.5%, near post-IPO lows.

Meanwhile, Bumble (BMBL) fell 4% overnight. The dating app where women choose the matches will offer 15 million shares on behalf of existing holders. BMBL stock, which came public in February, hit 60.87 intraday Tuesday, briefly clearing a 60.44 bottoming base buy point. But shares reversed to close down 3.6% to 57.77.

Global-e Online (GLBE) will sell 12 million shares on behalf of existing holders. GLBE stock, another 2021 IPO, fell 2% in extended action. Shares have been on a big run, but have pulled back over the last several sessions.

Apple Stock Leads Big Techs

Apple (AAPL) rose 1.55% to 156.69, hitting a new high. The Dow Jones tech titan said it will hold a product launch event on Sept. 14, with new versions of the iPhone and Apple Watch expected to be unveiled. Meanwhile, Ford (F) hired Doug Field, who had been in charge of the secretive Apple Car project. Field previously was a top Tesla executive and decades ago worked at Ford.

Apple stock is still above a 150.10 buy point, within the 5% chase zone that goes to 157.61, but it’s starting to feel a little extended. On the plus side, the relative strength line for AAPL stock hit a seven-month high. The RS line, the blue line in the charts provided, track a stock’s performance vs. the S&P 500 index.

Netflix (NFLX) popped 2.7% to 606.71, breaking out above a 593.39 buy point from a long consolidation, according to MarketSmith analysis. NFLX stock has risen in 16 of the last 17 sessions.

Amazon.com (AMZN) rose 0.9% to 3,509.29, rebounding from its 50-day and breaking a trend line, both offering early buy signals. The official buy point is 3,773.18 in an eight-week consolidation, but AMZN stock has been moving sideways for at least a year.

PayPal (PYPL) advanced 1.4% to 293.26. PYPL stock rose from its 50-day line and cleared a downward-sloping trend line, offering an early entry. PayPal stock has an official flat-base buy point of 310.26.

Facebook (FB) climbed 1.6% to 382.18. FB stock reclaimed a 377.65 buy point from a flat base.

Tesla stock rallied 2.6% to 752.92 , still in range from a 730 aggressive entry. The RS line for TSLA stock, though still well off all-time levels, is at a four-month best.

Bitcoin Tumbles

Bitcoin plunged 11% vs. 24 hours earlier to $46,760. After nearly hitting $53,000 on Monday, the highest in months, the Bitcoin price plunged as low as $42,921.27 before rebounding somewhat. El Salvador, as promised months ago, now deems Bitcoin as legal tender. The Latin American country also bought some Bitcoin. This could have been a case of “sell the news.”

Ethereum, Dogecoin and other alt-coins also sold off hard.

Marathon Digital (MARA) lost 9.3%, Riot Blockchain (RIOT) gave up 6.7%. Grayscale Bitcoin Trust (GBTC) skidded 7.2% and Grayscale Ethereum Trust (ETHE) tumbled 13.5%. COIN stock fell 4.2%. Coinbase reported some trading delays during the Tuesday’s morning plunge.

Apple stock, PayPal and Tesla are on IBD Leaderboard. Tesla stock and PayPal also are on SwingTrader. PYPL stock is on IBD Long-Term Leaders.

The video embedded in this article reviewed Tuesday’s market action and analyzed Apple stock, PayPal and DocuSign (DOCU).

Dow Jones Futures Today

Dow Jones futures fell a fraction vs. fair value. S&P 500 futures and Nasdaq 100 futures edged lower.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live

Stock Market Rally

The stock market rally had a mixed session, but weighted to the downside.

The Dow Jones Industrial Average fell 0.8% in Tuesday’s stock market trading. The S&P 500 index dipped 0.3%. The Nasdaq composite edged up 0.1%. The small-cap Russell 2000 declined 0.7%.

The 10-year Treasury yield jumped 5 basis points to 1.37%. Crude oil and copper prices fell modestly.

While Apple, Tesla, Amazon, Netflix and Facebook stock provided some support, most stocks gave up ground.

On the downside, software leaders such as DocuSign and CrowdStrike (CRWD) retreated. DOCU stock fell 6%, more than wiping out Friday’s bullish 5.3% move after earnings. CRWD stock slipped 2.9% after pulling back from record highs after its earnings.

Meanwhile, Dow Jones giants Boeing (BA) and 3M (MMM) weighed on the Dow Jones industrial average. Deere (DE), which closed just above a buy point Friday, slumped 4.5%.

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Top Exchange Traded Funds

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) dipped 0.1% after surging 11.7% over the prior two weeks. The Innovator IBD Breakout Opportunities ETF (BOUT) slumped 1%. The iShares Expanded Tech-Software Sector ETF (IGV) retreated 1.1%. The VanEck Vectors Semiconductor ETF (SMH) edged down 0.2%.

SPDR S&P Metals & Mining ETF (XME) rose 0.2% and Global X U.S. Infrastructure Development ETF (PAVE) sank 1.3%. U.S. Global Jets ETF (JETS) ascended 0.3%. SPDR S&P Homebuilders ETF (XHB) fell 1.6%. The Energy Select SPDR ETF (XLE) pulled back 0.6%. The Financial Select SPDR ETF (XLF) also declined 0.6%, even with Treasury yields rising.

Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) dipped 0.3% and ARK Genomics ETF (ARKG) fell 1.6%. Tesla stock is the No. 1 holding across ARK Invest ETFs. COIN stock and PATH stock also have become notable ARK holdings.

Five Best Chinese Stocks To Watch Now

Market Rally Analysis

The stock market rally had a mixed session. The Nasdaq hit a fresh high, while the S&P 500 is just below all-time levels. The Dow Jones fell to just above its 50-day line, but isn’t far from new highs either.

The small-cap Russell 2000 dipped but is pausing after comfortably clearing its 50-day line in recent days. Overall breadth has still improved in the market rally over the past couple of weeks.

Big techs are doing well. Tesla stock headlines an uptrend in EV plays, which also include China’s BYD (BYDDF) and Xpeng (XPEV), as well as various battery and lithium plays. Shipping stocks are doing well. Some hot IPO stocks have kept running.

But market leadership remains relatively narrow. Some software names are giving headfakes and have been over the past couple of months. Industrials are slumping. Retail and apparel names are looking weaker. Housing stocks aren’t broken, but they aren’t working either. Financials are holding their own, but not moving a lot in the past several sessions. Energy stocks are pulling back after some bullish moves.

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What To Do Now

The stock market rally remains healthy. Some early buying opportunities, such as BYD, PayPal and Amazon stock, cropped up on Tuesday.

If you’ve got some big recent winners, especially from the clutch of IPOs sprinting higher, you might consider taking partial profits if they become significantly extended from short-term moving averages.

But selling winning stocks, especially on the way up, is definitely an art. Taking partial profits can be smart portfolio management, locking in some gains and freeing up capital for new buys. But if you have true conviction in a company or stock, you might look for ways to carefully add to a position along the way. That can deliver knockout winners that make a year.

Ultimately, you have to adopt sell rules that work for you.

Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.

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Business

Dow Jones Futures: Stock Market Rally Hits New Highs; Zoom Stock Dives 12% On Earnings

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Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, were little changed late Monday after the stock market rally hit new highs. Apple stock jumped to record highs, while PayPal and Tesla raced higher. Zoom stock dived 12% on earnings after the close.




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On Monday, the Dow Jones Industrial Average dipped 0.2%. The S&P 500 climbed 0.4% and the Nasdaq rallied 0.9%; both indexes hit all-time highs.

Among the Dow Jones leaders, Apple (AAPL) rallied 3%, while Microsoft (MSFT) moved up 1.3% in today’s stock market. Home Depot (HD) remains below a new buy point after a recent breakout attempt.

Tesla (TSLA) raced ahead 2.7%, moving further above a recent buy point. The EV leader is now at the top of its buy range. PayPal (PYPL) climbed more than 3.5% Monday, retaking its key 50-day moving average. A new buy point has emerged.

After the close, Zoom Video (ZM) reported better-than-expected Q2 earnings results. But Zoom stock dived as much as 12% in extended trade.

Among the top stocks to buy and watch, Academy Sports & Outdoors (ASO), Airbnb (ABNB), Mercado Libre (MELI) and Palantir Technologies (PLTR) are in or near new buy zones.

Airbnb, Microsoft and Tesla are IBD Leaderboard stocks. Academy Sports is an IBD IPO Leader. Palantir was featured in this week’s Stocks Near A Buy Zone column. Airbnb was Tuesday’s IBD Stock Of The Day.

Dow Jones Futures Today

After the stock market close Monday, Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, were little changed vs. fair value. Remember that trading in Dow Jones futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

U.S. Stock Market Today Overview
Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 35399.90 -55.90 -0.16
S&P 500 (0S&P5) 4528.76 +19.39 +0.43
Nasdaq (0NDQC ) 15265.89 +136.39 +0.90
Russell 2000 (IWM) 225.49 -0.92 -0.41
IBD 50 (FFTY) 48.55 +0.55 +1.15
Last Update: 4:34 PM ET 8/30/2021

Among exchange traded funds, Innovator IBD 50 (FFTY) rose 1.15% Monday. Nasdaq 100 tracker Invesco QQQ Trust (QQQ) gained 1.1%. And the SPDR S&P 500 ETF (SPY) rose 0.4%.

Stock Market Rally Continues

The Nasdaq and S&P 500 hit fresh record highs Monday, while the Dow Jones Industrial Average remains just off its all-time highs.

Friday’s The Big Picture column commented, “The stock market’s action reaffirmed the current uptrend and was in stark contrast to Thursday’s moderate losses. The buying Friday was broad-based, though two sectors did edge lower — SPDR Health Care (XLV) (down 0.2%) and SPDR Utilities (XLU) (down less than 0.1%). Winners led losers by 5-to-1 on the NYSE and by more than 3-to-1 on the Nasdaq.”

For more stock market commentary, check out IBD’s The Big Picture.

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Zoom Earnings

After the close Monday, Zoom Video reported its quarterly results. Zoom earnings jumped to $1.36 per share, topping estimates for $1.16. Revenue came in at $1.02 billion, beating estimates for $991.2 million. Despite the earnings and sales beats, the company offered weaker-than-expected earnings guidance for the current quarter.

Late Monday, Zoom stock fell 12% in response to the company’s earnings results.

Zoom stock closed Monday up 2%, ending about 40% off its all-time high, which was set on Oct. 19, 2020, at 588.84. Shares are building a cup with handle with a 406.58 buy point, but are far away from that new entry. The stock is also sharply below its 50-day moving average.

Dow Jones Stocks To Buy And Watch: Home Depot

Dow Jones leader Home Depot is trying to break out past a cup with handle’s 333.55 entry, but currently sits just below the buy point, according to IBD MarketSmith chart analysis. The 5% buy area goes up to 350.23.

Shares were up 1.15% Monday.

Stocks To Buy And Watch: Academy Sports, Airbnb, Mercado Libre, Palantir

IPO Leader Academy Sports is trying to break out past a 42.85 buy point in a cup base. Shares briefly topped the entry last week before settling below the buy point. The top retail stock moved up 2.9% Monday and is back in buy range. The 5% buy zone tops out at 44.99.

Academy Sports was featured in last week’s IPO Leaders column.

IBD Leaderboard stock Airbnb is back above its 152.86 buy point after falling beneath it in a sharp move Thursday. Leaderboard’s analysis noted that the stock’s breakout Wednesday came with conviction and strong volume, positive action. Shares rallied 1.2% Monday.

According to IBD Stock Checkup, ABNB stock shows a modest 28 out of a perfect 99 IBD Composite Rating. Newer issues rarely have a sustained earnings track record — which is a key component of the Composite Rating — so a weak rating is normal. The IBD Composite Rating identifies stocks with a blend of strong fundamental and technical characteristics.

Airbnb was Tuesday’s IBD Stock Of The Day.

Mercado Libre traded up 0.75% Monday, closing just under a cup with handle’s 1,899.43 buy point. MELI stock briefly topped the buy point in Monday trade.

Palantir Technologies is again trying to break out past a cup with handle’s 26.04 buy point, according to IBD MarketSmith chart analysis. Shares slashed gains to just 0.2% Monday. The stock’s relative strength line remains far from its old highs. Ideally, the RS line should hit a new high on the breakout day.

On Aug. 12, Palantir reported second-quarter adjusted earnings that met expectations, while revenue growth came in above Wall Street targets. Check out Palantir in this week’s Stocks Near A Buy Zone column.

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PayPal Stock

PayPal stock advanced 3.6% Monday, bullishly retaking its key 50-day moving average after CNBC reported the company is exploring ways to let users trade individual stocks.

Shares of the payment processor are tracing a flat base with a 310.26 buy point. The stock is about 7% away from the new entry.

Tesla Stock

Tesla stock rallied 2.7% Monday. Last week, shares regained their 700.10 aggressive buy point deep inside a correction after last week’s weakness and are back in buy range. Meanwhile, a deep, large base continues to take shape.

On Jan. 25, Tesla stock hit a record high of 900.40, after climbing as much as 93% from a 466 buy point in a cup with handle.

Dow Jones Leaders: Apple, Microsoft

Among the top Dow Jones stocks, Apple moved up 3% Monday, hitting an all-time high at 153.49. Apple shares are in buy range above a 148 trendline buy point.

Software giant Microsoft rose 1.3% Monday. Microsoft is about 15% above a cup base’s 263.29 buy point and near new highs.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.

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Business

SAVA Stock Dives As Quanterix Distances Itself From ‘Data Manipulation’ Allegations

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The laboratory that tested samples for Cassava Sciences‘ (SAVA) Alzheimer’s study distanced itself from the biotech company on Friday, and SAVA stock plunged for a third straight day.




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Cassava tapped Quanterix‘s (QTRX) Accelerator laboratory to test blinded samples provided by Cassava for an Alzheimer’s treatment study presented at the Alzheimer’s Association International Conference last month. Earlier this week, shareholder firm Labaton Sucharow called into question Cassava’s test results, alleging the biotech company manipulated the data.

And Quanterix wants nothing to do with the allegations.

“Quanterix or its employees did not interpret the test results or prepare the data charts presented by Cassava at the Alzheimer’s Association International Conference in July 2021 or otherwise,” the lab said in a written statement on Friday.

In response, SAVA stock toppled 14.9% near in afternoon trading on today’s stock market. That came on top of double-digit drops on Wednesday and Thursday.

SAVA Stock Continues Its Dive

Cassava is working on an Alzheimer’s drug that aims to stabilize filamin A, a scaffolding protein. At a nine-month interim analysis, Cassava said the treatment called simufilam improved cognition in Alzheimer’s patients.

To put that in perspective, even Biogen‘s (BIIB) Aduhelm only slows cognitive decline. Aduhelm is the only Alzheimer’s treatment that aims to correct an underlying pathology of the disease, rather than just treating the symptoms.

But shareholder firm Labaton Sucharow doubted Cassava’s results in a report Wednesday. The firm questioned the validity of Cassava’s biomarker data, an analysis method called Western Blot and the company’s analyses of human brain tissue. SAVA stock tumbled 31.4% that day.

On Wednesday, Cassava said it stood behind its science and the company provided a point-by-point opposition to Labaton Sucharow’s allegations. Still, SAVA stock fell again on Thursday, diving another 12.4% in high volume, according to MarketSmith.com.

Meanwhile, Quanterix stock toppled 9.2% on Thursday, but rose 9.4% midday Friday.

Cassava Responds To Lab Statement

Cassava doesn’t disagree with Quanterix’s assessment of the job. In its own written statement released Friday, the company says Cassava was charged with measuring the levels of p-tau — a key protein in Alzheimer’s research — in samples collected from study subjects.

It’s standard practice is to separate “the people who generate the data from the people who analyze the data,” Cassava Chief Executive Remi Barbier said in a written statement. To suggest anything else “is a distortion of the facts,” he added.

Quanterix’s sampling was conducted entirely by its employees, Cassava said. The lab workers didn’t know which samples came from placebo recipients or those who received simufilam. After conducting its sample testing, Quanterix sent the results to Cassava for treatment effect analysis.

“We both had a job to do, we both did our respective jobs and we co-authorized the results in an abstract at a major scientific conference,” Barbier said in an email to Investor’s Business Daily.

Cassava believes Labaton Sucharow’s allegations are “false and misleading.” It claims Labaton Sucharow holds a short position in SAVA stock. Representatives of the shareholder firm didn’t immediately respond to a request for comment from Investor’s Business Daily.

Follow Allison Gatlin on Twitter at @IBD_AGatlin.

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Business

Dow Jones Slides As Virgin Galactic Dives On Offering After Test Flight; Tesla Stock Races Higher

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The Dow Jones Industrial Average fell 100 points Monday, as Virgin Galactic dived 10% on a stock offering following the company’s first fully crewed space flight. Tesla stock raced higher in morning trade.




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Among the Dow Jones leaders, Apple (AAPL) gained 0.3% Monday, while Microsoft (MSFT) moved up 0.4% in today’s stock market. McDonald’s (MCD) traded flat after the open and is just below a new buy point.

Tesla (TSLA) moved up over 2% Monday, as it continues to rebound from its key support levels.

Among the top stocks to buy and watch, Amazon.com (AMZN), Roku (ROKU) and Shopify (SHOP) are in or near new buy zones.

Microsoft and Shopify are IBD Leaderboard stocks. Roku is an IBD SwingTrader stock.

Dow Jones Today

The Dow Jones Industrial Average pared losses to less than 0.1% in morning trade, while the S&P 500 turned slightly higher. The tech-heavy Nasdaq composite climbed 0.2% in early trade.

Among exchange-traded funds, the Innovator IBD 50 (FFTY) rallied 0.7% Monday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) gained 0.4% after the open Monday. Meanwhile, the SPDR S&P 500 ETF (SPY) lost 0.1% in morning trade.

Stock Market Rally

The S&P 500 hit more record highs Friday, while the Nasdaq is just shy of its own all-time highs following Friday’s solid gain. The Dow Jones Industrial Average is rebounding from support at its 50-day moving average line and could set more records.

Friday’s Big Picture column commented, “The S&P 500 marked a distribution day Thursday, but Thursday’s rally off lows for the major stock indexes and more gains on Friday show that buyers are still around. The uptrend is still very much intact. The Nasdaq composite only shows two distribution days. One was a mild stalling session on Wednesday. The other was on June 15 when the index fell 0.7% in higher volume.”

For more stock market commentary, check out IBD’s The Big Picture.

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Dow Jones Stocks: McDonald’s

Dow Jones restaurant giant McDonald’s is trading below a 238.28 buy point in a flat base, according to IBD MarketSmith chart analysis, following Friday’s 1.2% advance. Shares were slightly lower Monday.

McDonald’s was featured in Friday’s IBD Industry Themes column, along with Chipotle Mexican Grill (CMG). Chipotle stock is in a new buy range.

Virgin Galactic’s Test Flight

Virgin Galactic (SPCE) conducted its first fully crewed flight on Sunday, sending Richard Branson into space. Virgin’s Eve mother ship took off from Spaceport America in New Mexico on Sunday morning, carrying the company’s SpaceShipTwo.

After reaching 45,000 feet, Eve released SpaceShipTwo at about 11:25 a.m. ET, allowing the space plane to fire its rocket engines and soar to about 56 miles above the earth. Once there, the crew experienced weightlessness for a few minutes. By 11:30 a.m., the space plane began its descent, and landed at 11:40 a.m.

SPCE stock jumped as much as 10% in premarket trade Monday, but failed to hold those gains into the market open. Shares dived more than 10% Monday morning after the company announced a $500 million stock offering. The stock is building a deep cup with handle with a 57.61 buy point.

Stocks To Buy And Watch: Amazon, Roku, Shopify

Tech giant Amazon remains just past buy range from a cup-with-handle’s 3,524.96 buy point following last week’s strong breakout move. The buy zone topped out at 3,701.21. Shares rallied 0.8% Monday.

According to IBD Stock Checkup, AMZN stock shows a solid 93 out of a perfect 99 IBD Composite Rating. The IBD Composite Rating easily identifies stocks with a blend of strong fundamental and technical characteristics.

IBD 50 stock Roku added a handle to a cup base, moving the buy point from 486.82 to 463.09. Shares moved up 2.4% Monday morning and are about 7% away from the new entry.

Roku is an IBD SwingTrader stock.

IBD Leaderboard stock Shopify is still just below a 1,552.33 buy point in a cup with handle, according to IBD MarketSmith chart analysis. Shares looked to add to Friday’s 2.2% rise, rallying 1.9% Monday.

Per Leaderboard analysis, “The handle formed after the stock formed a long cup-base pattern over the space of 18 weeks. The relative strength line has been moving sideways during the handle consolidation. An upward spike will be constructive going forward.”

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Tesla Stock

Tesla stock rallied over 2% Monday, looking to add to Friday’s 0.6% gain and extend a win streak to three sessions. The electric vehicle giant continues to rebound from key support at its key 50- and 200-day moving averages. A strong show of support at these levels would be bullish for the stock’s prospects.

On Jan. 25, Tesla stock hit a record high at 900.40, after climbing as much as 93% from a 466 buy point in a cup with handle.

Dow Jones Leaders: Apple, Microsoft

Among the top Dow Jones stocks, Dow Jones leader Apple moved up 0.3% Monday morning, on pace to add to Friday’s 1.3% gain. Apple stock is now extended past the 5% buy zone from a 137.17 entry in a cup base, according to IBD MarketSmith chart analysis.

Microsoft continues to trade solidly above a cup base’s 263.29 buy point. Shares rose 0.4% Monday and are extended. The 5% buy zone goes up to 276.45.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.

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Business

Dow Jones Dives As Treasury Yields Tumble; Tesla Stock Skids Despite Strong China Sales

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The Dow Jones Industrial Average dived over 500 points Thursday, as the 10-year Treasury yield continued to tumble. Tesla stock skidded nearly 3% despite strong China sales, while the company unveiled a cheaper version of its made-in China Model Y crossover.




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Among the Dow Jones leaders, Apple (AAPL) sold off 1.8% Thursday, while Microsoft (MSFT) moved down 1% in today’s stock market. Nike (NKE) backed off from new highs following a June 25 breakaway gap.

Tesla (TSLA) threatened to slide for a third consecutive day, dropping more than 2%.

Among the top stocks to buy and watch, Apple, Amazon.com (AMZN), Burlington Stores (BURL) and Shopify (SHOP) are in or near new buy zones.

Microsoft and Shopify are IBD Leaderboard stocks. Burlington Stores was Wednesday’s IBD Stock Of The Day.

Dow Jones Today: 10-Year Treasury Yield Slides Again

The Dow Jones Industrial Average dived 1.35% Thursday morning, while the S&P 500 declined 1.4%. The tech-heavy Nasdaq composite lost 1.6% in midday trade.

U.S. Stock Market Today Overview
Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 34199.38 -482.41 -1.39
S&P 500 (0S&P5) 4298.06 -60.07 -1.38
Nasdaq (0NDQC ) 14468.34 -196.72 -1.34
Russell 2000 (IWM) 220.62 -3.14 -1.40
IBD 50 (FFTY) 42.69 -1.13 -2.58
Last Update: 10:36 AM ET 7/8/2021

The 10-year Treasury yield tumbled as low as 1.26% Thursday morning before paring some losses. The 10-year Treasury yield traded around 1.27% in morning trade and is at its lowest level since mid-February.

Among exchange traded funds, the Innovator IBD 50 (FFTY) trimmed early losses to 2.7% Thursday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) moved down 1.2%. Meanwhile, the SPDR S&P 500 ETF (SPY) lost 1.3%.

Stock Market Rally

The Nasdaq backed off from Wednesday’s record highs, while the S&P 500 remained just off its own all-time highs. The Dow Jones Industrial Average dropped narrowly below support at its 50-day moving average line.

Wednesday’s Big Picture column commented, “The stock market didn’t like it when the 10-year yield jumped to 1.76% in late March. Now, the stock market is worried about plunging yields and what that means about the economic recovery. For now, the bond market is saying it’s not worried about persistent inflation. Instead, it’s worrying about an economic recovery that may not be as robust as expected.”

For more stock market commentary, check out IBD’s The Big Picture.

Stock Market ETF Strategy And How To Invest

Dow Jones Stocks: Nike

Dow Jones leader Nike dropped 0.6% Thursday. Nike stock is extended past a consolidation’s 148.05 buy point. The 5% buy zone goes up to 155.45, according to IBD MarketSmith chart analysis.

Nike looked to snap a four-day win streak, but remains just off its all-time highs. Shares surged past the entry on June 25 when the company blew away fiscal fourth-quarter earnings estimates.

Stocks To Buy And Watch: Amazon, Burlington, Shopify

Tech giant Amazon.com is back in buy range past a cup with handle’s 3,524.96 buy point following Tuesday’s strong breakout move. The buy zone topped out at 3,701.21. Shares lost 1.7% Thursday morning.

According to IBD Stock Checkup, AMZN stock shows a solid 92 out of a perfect 99 IBD Composite Rating. The IBD Composite Rating easily identifies stocks with a blend of strong fundamental and technical characteristics.

Wednesday’s IBD Stock Of The Day, Burlington Stores, remains near a 339.38 buy point in a cup base. Shares fell 2% Thursday morning and are about 5% away from the new entry.

New IBD Leaderboard stock Shopify is trying to break out past a 1,552.33 buy point in a cup with handle, according to IBD MarketSmith chart analysis. Shares dropped nearly 3% Thursday morning following Wednesday’s downside reversal.

Per Leaderboard analysis, “The handle formed after the stock formed a long cup base pattern over the space of 18 weeks. The relative strength line has been moving sideways during the handle consolidation. An upward spike will be constructive going forward.”

IBD Live: A New Tool For Daily Stock Market Analysis

Tesla Stock

Tesla stock halved its losses to 1.5% Thursday, still threatening to slide for a third straight session. Tesla skidded 2.85% Tuesday and another 2.3% Wednesday. The EV giant is testing support around its key 50- and 200-day moving averages. Sharp breaks of these support levels would be bearish for the stock’s prospects.

Ahead of the market open Thursday, The China Passenger Car Association reported Tesla China sales were strong in June, while U.S. auto giant also unveiled a cheaper version of its made-in-China Model Y crossover. The CPCA said Thursday that Tesla sold 33,155 EVs in June, including 21,532 locally made Model 3 sedans and 11,623 Model Y crossovers. The overall figure includes 28,138 local sales and 5,017 exports.

On Jan. 25, Tesla stock hit a record high at 900.40, after climbing as much as 93% from a 466 buy point in a cup with handle.

Dow Jones Leaders: Apple, Microsoft

Among the top Dow Jones stocks, Dow Jones leader Apple sold off over 2% Thursday. Apple stock is trading in the 5% buy zone past a 137.17 entry in a cup base, according to IBD MarketSmith chart analysis.

Apple stock looked to snap a seven-day win streak.

Microsoft is slightly extended past the buy range above a new cup base’s 263.29 buy point, according to IBD MarketSmith chart analysis.

Shares declined 1% Thursday and are just out of the buy zone. The 5% buy zone goes up to 276.45.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.

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Business

Tencent Dives Despite Assurances on China Antitrust Fallout

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(Bloomberg) — Tencent Holdings Ltd. played down the impact of Beijing’s heightening scrutiny over China’s biggest internet firms, saying a potential revamp of its $120 billion fintech wing should have little impact on its business. Its shares sank the most in two months.

President Martin Lau acknowledged founder Pony Ma called on regulators recently but said that it was voluntary and part of a series of regular meetings. Executives reiterated that the company has always been cautious and compliant with fintech regulations and it will stick with its normal practice of acquiring minority stakes in Chinese startups, while regulators pore over past deals.

Beijing is widening a crackdown on the country’s largest corporations, fearful of their growing clout after years of relatively unfettered expansion. Regulators are said to be considering forcing the firm to overhaul its promising fintech division in a similar fashion to Jack Ma’s Ant Group Co. This month, President Xi Jinping warned he will go after “platform” companies that amass data and market power, a sign the internet crackdown isn’t limited to Ant and its backer Alibaba Group Holding Ltd.

Tencent’s shares slid more than 5.6% in Hong Kong Thursday, their largest intraday fall in two months, worsening a $180 billion selloff in Asia’s biggest company since its January peak. Technology stocks also declined following a U.S. rout, as regulators revived threats to toss China’s largest corporations off American bourses.

Read more: China Tech Giants Dive as Delisting Threat Joins Crackdown Fears

“It was telling that several questions on Tencent’s quarterly call were directed at regulatory risks, and it’s hard to argue against the idea that this could remain an overhang for Tencent’s share price performance,” Bernstein analyst Robin Zhu wrote in a research note. But the fourth-quarter “numbers serve as a reminder that the business remains in very robust shape.”

Lau acknowledged companies like Tencent tread a fine line between public duty and profit motive as they get larger, but the “boring answer” was to remain compliant and stay in touch with the government. Asked whether Tencent’s core gaming and entertainment businesses might attract antitrust regulators’ attention, executives pointed to the sheer number of competitors. That was in contrast with a quarter ago, when they stressed the new antitrust rules focused more on transaction-based platforms than on Tencent’s entertainment businesses.

“We have always been very focused on compliance and we will continue to operate strictly in compliance with the rules and regulations,” Lau told reporters on a conference call. Any requirements to form a financial holding company will not have an impact on its business, he added. “Compliance is our lifeline.”

Read more: Tencent Waves Off Impact of Revamp Into Financial Holding Firm

Tencent’s attempt to allay investor concerns over regulatory scrutiny comes after it posted revenue growth that barely met expectations.

Top executives on Wednesday repeatedly stressed they’ll go all out to comply with regulations. Tencent, which acquired stakes in hundreds of startups over the years, is going over past investments to ensure they comply with antitrust requirements. The operator of WeChat — used by a billion-plus people — pledged again to safeguard user privacy even as it acknowledged the need to heed Beijing’s call to share data on everything from search to e-commerce.

Led by the People’s Bank of China, the government has proposed establishing a joint venture with tech giants that would oversee the lucrative data they collect, which would mark a significant escalation in regulators’ attempts to tighten their grip over the sector, Bloomberg News reported Wednesday.

“Tencent is trying to reassure investors that its microloan business has substantive differences from Ant,” said Michael Norris, research manager at Shanghai-based consultancy AgencyChina. “While Tencent may avoid the same level of scrutiny as Ant Group, there may be some bumps along the road. Potentially issues could include scrutiny of data collection, or regulatory attention toward promotion and cross-sale of financial products,” he added.

Read more: China Is Said to Mull State-Backed Company to Oversee Tech Data

Sales rose 26% to 133.7 billion yuan ($20.5 billion) in the three months ended December, versus the 133.1 billion yuan average forecast. Net income came in at 59.3 billion yuan, with one-time gains contributing over half its profit. That compared with the 32.9 billion yuan projected.

It’s unclear how far Beijing intends to go in its bid to rein in Tencent and its peers. In the short run, investors will likely focus more on how the world’s largest game publisher could sustain a pandemic-induced entertainment boom, while delving deeper into newer businesses like advertising and payments. Revenues from online games grew 29% in the fourth quarter — the slowest pace in about a year — despite a surge in sales of titles like Peacekeeper Elite and the newly launched Moonlight Blade Mobile.

All rely on WeChat, the avenue through which Tencent reaches users and markets products, including its biggest gaming hits like Honor of Kings and PUBG Mobile. Through the mini-program model it championed, WeChat hosted $240 billion worth of transactions for 400 million daily users last year. Now it’s relying on a new short-video feed inside the all-purpose platform to fend off ByteDance Ltd., which has been luring eyeballs away with TikTok’s China cousin Douyin.

Tencent’s Earnings Engine May Withstand Scrutiny: Tim Culpan

Sales from social networks climbed 27%, in part after Tencent consolidated contributions from Huya Inc. Online advertising revenues increased 22%.

Fintech and businesses — the division that oversees Tencent’s various money operations as well as cloud — grew revenue 29% thanks to payments and wealth management services. But concerns linger over whether the company can sustain that pace.

China’s largest company faces more scrutiny of its fintech operations as regulators step up supervision of a fledgling but sprawling industry that could pose systemic risks. As one of the largest operators in the sector, Tencent’s businesses face the same stringent measures that have dented Ant’s breakneck growth.

Proposed rules to break up market concentration in digital payments and rein in consumer lending online will damage prospects for Tencent’s WeChat Pay and its wider fintech business. Bloomberg reported this month that regulators are considering asking the company to fold its fintech operations into a holding entity that could be regulated more like a bank.

What Bloomberg Intelligence Says

Tencent’s fintech focus on risk management over scale threatens to grind its growth gears as the company tiptoes through a hair-trigger regulatory landscape fraught with potential hazards.

— Vey-Sern Ling and Tiffany Tam, analysts

Click here for the research

Read more: Tencent Said to Face Broad China Clampdown on Fintech, Deals

(Updates with analyst comment in fifth paragraph)

For more articles like this, please visit us at bloomberg.com

Subscribe now to stay ahead with the most trusted business news source.

©2021 Bloomberg L.P.

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Business

Dow Jones Rallies, Tech Stocks Fall As Yields Rebound; GME Stock Dives 18%

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The Dow Jones Industrial Average rallied over 200 points Wednesday, as Treasury yields edged above early lows. EV giant Tesla stock reversed lower amid Bitcoin news, while GME stock dived on earnings.




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Among the Dow Jones leaders, Apple (AAPL) fell 0.7% Wednesday, while Microsoft (MSFT) moved down 0.6% in today’s stock market. Boeing (BA) is back in buy range following a recent breakout.

Tesla (TSLA) reversed lower amid Bitcoin news Wednesday. Dow Jones chip giant Intel (INTC) briefly surged on spending plans for two new chip plants.

GameStop (GME) dived more than 18% after the company’s earnings results late Tuesday.

Among the top stocks to watch, chip leaders Applied Materials (AMAT), ASML (ASML), MKS Instruments (MKSI), Nvidia (NVDA) and Qorvo (QRVO) are showing leadership potential in the current stock market rally.

Meanwhile, Alphabet (GOOGL), and Wayfair (W) are in or near buy zones. Alphabet was featured in this week’s Stocks Near A Buy Zone column, while Wayfair was Monday’s IBD 50 Stocks To Watch pick.

Alphabet, Microsoft and Nvidia are IBD Leaderboard stocks. MKS Instruments was a recent IBD Stock Of The Day.

Biden, Fed Are Changing The Game For Stocks

Dow Jones Today: Treasury Yields

The Dow Jones Industrial Average rallied 1%, while the S&P 500 moved up 0.6%. The tech-heavy Nasdaq composite fell 0.2% in morning trade after paring some losses.

The 10-year Treasury yield turned higher to 1.644% Wednesday, after falling as low as 1.594% in morning trade.

Among exchange traded funds, the Innovator IBD 50 (FFTY) traded down 0.6% on Wednesday. The Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) fell 0.3%. Meanwhile, the SPDR S&P 500 ETF (SPY) moved up 0.5%.

Stock Market Rally: Nasdaq Tests Key Level Again

Amid the current stock market rally, the Dow Jones Industrial Average and S&P 500 indexes fell sharply Tuesday.

Meanwhile, the tech-heavy Nasdaq tumbled as it continues to see resistance around its key 50-day moving average line. The Nasdaq will need to overcome this key hurdle in order to maintain its upward trajectory. The 50-day line is a critical potential resistance level. If the Nasdaq decisively clears it, then new highs could be on the horizon.

IBD’s market outlook was upgraded to “confirmed uptrend” on March 10, as the Dow Jones Industrial Average set new highs.

Tuesday’s Big Picture commented, “The rotation in the stock market today continued. But this time, investors fled small caps and headed back into safe-haven Treasury bonds on the long end. Oil suffered one of its worst days in months.” For daily stock market commentary, check out IBD’s The Big Picture.

Stock Market ETF Strategy And How To Invest

Dow Jones Stocks: Boeing

Inside the Dow Jones Industrial Average, Boeing is just above a 244.18 buy point in a cup base. The 5% buy zone goes up to 256.39.

Shares rose 2% Wednesday, on pace to snap a four-day losing streak.

Dow Jones News: Intel

Dow Jones chip giant Intel slashed gains to about 1.4% Wednesday morning. Shares surged early after the company said it would spend $20 billion on two big chip plants in Arizona.

Intel shares are back above a 63.64 buy point in a cup with handle following a recent breakout, according to IBD MarketSmith chart analysis.

Chip Stocks To Watch: Applied Materials, Nvidia

Chip stocks were lifted Wednesday by the Intel news and they continue to be some of the best technology names in the current stock market rally. The VanEck Vectors Semiconductor ETF (SMH) was a new IBD SwingTrader addition amid a 2.3% rise on Monday. The ETF fell 0.9% Wednesday morning.

Applied Materials continues to rebound from its 50-day support level. Shares jumped 6% Wednesday to hit a new high.

ASML jumped back above its 50-day line Monday, and added another 5% Wednesday. Shares are in week six of a potential base. The minimum length of a cup base is six weeks, so a new buy point could emerge at the end of the week.

Qorvo found support at its 50-day line in recent sessions. Shares are closing in on a 191.93 buy point, while an early entry exists at 185.96. Early Wednesday, Qorvo stock moved up 0.4%.

Recent IBD Stock Of The Day MKS Instruments is just below its 177.46 buy point in a double bottom amid Wednesday’s 5% gain. The 5% buy zone goes up to 186.33.

According to IBD Stock Checkup, MKSI stock boasts a perfect 99 IBD Composite Rating. The IBD Composite Rating helps investors easily measure the quality of a stock’s fundamental and technical metrics.

Chip giant Nvidia fell nearly 1% Wednesday. The graphics-chip maker could be forming the right side of a new base, but it’s a bit too early for a conventional buy point. A strong day to reclaim the 50-day line would be bullish for the stock’s prospects.

Stocks Near Buy Zones: Alphabet, Wayfair

IBD Leaderboard stock Alphabet completed a five-week flat base Friday, creating a new buy point at 2,145.24, according to IBD MarketSmith chart analysis. Shares are about 6% below the new entry. GOOGL stock moved up 0.7% Wednesday.

According to Leaderboard commentary, “Alphabet has made better progress than other big-cap techs lately. Support at the 21-day line is defining the current chart action. The last base was second stage.”

Monday’s IBD 50 Stocks To Watch pick, Wayfair, is trying to break out past a 343.09 buy point in a cup with handle. Shares fell 2% Wednesday and are below the buy point.

IBD Live: A New Tool For Daily Stock Market Analysis

GME Stock Dives On Earnings

GME stock dived 18% after management abruptly ended a post-earnings conference call late Tuesday. GameStop missed Q4 estimates but reported strong comp sales in early Q1.

On Jan. 28, GME stock surged as high as 483 before plunging in February. Shares rebounded as high as 348.50 in March, but they closed Tuesday at 181.75.

Tesla Stock

Tesla stock turned slightly lower Wednesday morning, looking to add to Tuesday’s 1.2% loss. Early Wednesday, CEO Elon Musk tweeted, “You can now buy a Tesla with Bitcoin.”

Shares of Tesla ended Tuesday about 26% off their 52-week high. Tesla stock could be forming a new base, but it is too early for a new risk-optimal buy point.

On Feb. 22, Tesla broke down through its key 10-week moving average line, a critical support level. On Jan. 25, Tesla stock hit a record high at 900.40, after climbing as much as 93% from a 466 buy point in a cup with handle.

Dow Jones Leaders: Apple, Microsoft

Among the top Dow Jones stocks, Apple fell 0.7% Wednesday, threatening to add to Tuesday’s 0.7% loss. Apple stock is rebounding from its long-term 40-week line and could soon again try to reclaim its 10-week line.

On Feb. 18, Apple stock triggered the 7%-8% loss-cutting sell rule when it fell more than 7% below its 138.89 buy point in a cup with handle.

Meanwhile, software giant Microsoft moved down 0.6% Wednesday, but remains above its key 50-day line. Shares are back above their 232.96 buy point and are approaching a 246.23 buy point in a new flat base.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.

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Business

Dow Jones Futures Steady, Tech Futures Tumble As Treasury Yields Pop Before Fed Meeting; Plug Power Dives On Accounting

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Dow Jones futures edged higher early Wednesday, while S&P 500 futures and especially Nasdaq futures fell as Treasury yields hit 13-month highs ahead of this afternoon’s Fed meeting announcement.




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The stock market rally finished narrowly mixed Tuesday after the Nasdaq closed well off intraday highs. Plug Power (PLUG) and CrowdStrike stock headlined key overnight movers.

CrowdStrike (CRWD), Coupa Software (COUP), Smartsheet (SMAR) and Lennar (LEN) headlined earnings late Tuesday, with Chinese e-commerce giant Pinduoduo (PDD) reporting early Wednesday. Plug Power stock plunged on accounting isues.

Microsoft stock, MKS Instruments (MKSI), Applied Materials (AMAT) and Apple (AAPL) iPhone chipmakers Qorvo (QRVO) and Skyworks Solutions (SWKS) all flashed buy points at least intraday.

Chip-equipment maker MKS Instruments broke out past a buy point Tuesday. Chip-gear giant AMAT stock flashed an early entry, along with wireless chipmakers Qorvo and Skyworks Solutions.

Microsoft (MSFT) rose, flashing additional buy signals. Google parent Alphabet (GOOGL) also climbed slightly and is potentially actionable. Apple stock and Facebook (FB) rose but may need more repair time.

Amazon.com (AMZN) closed near lows, stuck around its 200-day line. Tesla (TSLA) hit resistance and retreated, still well below its 50-day line.

All of these stocks came off highs, with some closing near session lows as the Nasdaq lost steam.

Take Advantage Of Leaderboard Free Access Week

Plug Power Stock Dives

After the close, Plug Power said it would have to restate 2018 and 2019 financial statements, as well as quarterly statements for 2019 and 2020. The fuel cell company cited accounting errors related to non-cash items, including some costs. But it said there was no misconduct. PLUG stock plunged 16% in premarket trading. Shares sank 8.1% on Tuesday, hitting resistance at its 21-day line.

Key Earnings

CrowdStrike earnings and revenue were better than expected, while the cybersecurity leader also guided higher. CRWD stock gained 3% early Wednesday. Shares hit resistance at the 21-day line Tuesday and reversed lower for a 2.1% loss.

Coupa earnings and sales also topped views. COUP stock edged lower in premarket trade after rising late Tuesday. Shares fell 3.5% on Tuesday.

Smartsheet earnings and revenue beat forecasts. SMAR stock advanced 2% before the open. Shares rose 1.4% on Tuesday to 68.71, backing off key levels intraday.

Pinduoduo reported a smaller-than-expected loss while revenue surged 163%, far above estimates. PDD stock lost 4% early Wednesday after rising 1.1% to 160.89 on Tuesday.

CRWD stock, Coupa stock and Smartsheet, along with Pinduoduo, are former leaders that sold off sharply in the recent tech sell-off. They all closed below their 50-day moving averages, with COUP stock below its 200-day line.

Lennar earnings also exceeded analyst estimates. LEN stock edged lower in premarket trade. Shares fell 1.5% to 88.71. Lennar stock is several weeks into a consolidation next to a prior base. A move above last week’s high of 92.85 — the top of a quasi-handle — could offer an early entry.

Google stock and Microsoft are on IBD Leaderboard. AMAT stock and Google are on SwingTrader and the Big Cap 20. MSFT stock  is an IBD Long-Term Leader. Google, SWKS and TSLA stock are on the IBD 50. MKSI stock was Tuesday’s IBD Stock Of The Day.

Fed Meeting In Focus

The Federal Reserve will end its two-day policy meeting Wednesday, with an announcement at 2 p.m. ET. Investors will be looking for clarity from the central bank and Fed chief Jerome Powell regarding inflation and rising Treasury yields, which have hit growth stocks. Will the Fed enact, or signal a move toward, reviving “Operation Twist” to drive down long-term Treasury yields? While the Fed has said it’s far away from even curbing bond buys, will policymakers signal optimism about the economic outlook, worrying traders?

Dow Jones Futures Today

Dow Jones futures rose 0.1% vs. fair value. S&P 500 futures fell 0.3% while Nasdaq 100 futures retreated 1.1%.

The 10-year Treasury yield rose several basis points to 1.67%, at 13-month highs.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

Join IBD experts and special guest David Ryan as they analyze actionable stocks in the stock market rally on IBD Live.

Coronavirus News

Coronavirus cases worldwide reached 121.39 million. Covid-19 deaths topped 2.68 million.

Coronavirus cases in the U.S. have hit 30.23 million, with deaths above 549,000.

Moderna (MRNA) has begun dosing children aged six months to less than 12 years old with its coronavirus vaccine in a phase 2/3 study. Moderna and Pfizer (PFE) are already testing their vaccines in older children.

Stock Market Rally

U.S. Stock Market Today Overview
Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 32824.90 -128.56 -0.39
S&P 500 (0S&P5) 3962.64 -6.30 -0.16
Nasdaq (0NDQC ) 13471.57 +11.86 +0.09
Russell 2000 (IWM) 230.44 -3.98 -1.70
IBD 50 (FFTY) 47.21 -0.25 -0.53
Last Update: 4:06 PM ET 3/16/2021

The stock market rally closed with minimal changes but it was a disappointing day for the Nasdaq and growth names.

The Dow Jones Industrial Average fell 0.4% in Tuesday’s stock market trading. The S&P 500 index dipped 0.1%. The Nasdaq composite edged up 0.1%, after rising as much as 1.2% intraday and briefly turning negative. The small-cap Russell 2000 sank 1.7%.

10-year Treasury yield rose 1 basis point to 1.62% after dipping intraday to 1.585%.

Financials, airlines and commodity plays pulled back while growth names faded to close mixed.

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) lost 0.5%, while the Innovator IBD Breakout Opportunities ETF (BOUT) sank 0.9%. The iShares Expanded Tech-Software Sector ETF (IGV) dipped 0.5%, with MSFT stock its top holding. The VanEck Vectors Semiconductor ETF (SMH) gained 1.1%, with Qorvo and SWKS stock both notable components.

Reflecting more-speculative story stocks, Ark Innovation ETF slid 1.7% and Ark Genomics ETF 2.2%. Tesla stock is the top holding across Ark Investments’ ETFs. Ark Invest bought some PDD stock ahead of its earnings.

Tech Titans

Microsoft stock rose 1.2% to 237.71, rebounding from its 21-day exponential moving average and 10-week lines once again. Shares are still in range from the 232.96 buy point, according to MarketSmith analysis. MSFT stock is on track to have a flat base at the end of this week with a 246.23 entry.

Google stock advanced 1.4% to 2,083.89, once again rebounding from its 21-day line. Shares got to 2,113.68 intraday, just below very recent highs. Investors could take an early entry at current levels or above Tuesday’s highs. The official buy point is 2,145.24 from a three-weeks-tight pattern — or a flat base after this week.

Apple stock climbed 1.3% to 125.57, above its 21-day line and breaking a downtrend. But the iPhone giant is still below its now-falling 50-day.

Facebook stock rose 2% to 279.28, continuing a rebound from its 10-, 21-, 50- and 200-day lines. FB stock got right to a trend line starting with the Aug. 26 all-time high of 304.67. Investors could buy Facebook if it gets above Tuesday’s high, but they might want to wait for shares to at least clear the Jan. 28 peak of 286.79.

Amazon stock edged up 0.3%, but hit resistance at its 200-day.

Tesla stock fell 4.4% to 676.88, hitting resistance at its 21-day line. It’s still significantly below its 50-day line and its Jan. 25 peak of 900.40. TSLA stock fell 3% early Wednesday.

This could be just a breather for Tesla stock stock, which jumped 16% last week. But perhaps not.

While TSLA stock is struggling to rebound, Volkswagen (VWAGY) has been soaring as it announces big EV targets in 2021 with major battery investments. VWAGY stock jumped 10% on Tuesday to its best level since 2009. Shares are up 57% so far in 2021.

Chip Stocks In Buy Zones

MKSI stock popped 3.4% to 177.91, just closing above a 177.46 double-bottom buy point after reaching 182.14 intraday.

AMAT stock rose 3.15% to 118.50, rebounding from its 21-day line and breaking a short downtrend. It’s 7% above its 10-week line, still in range.

Qorvo stock rose 1.3% to 180.54, near the day’s lows after hitting 185.76 intraday. Shares did close above a downtrend and it’s only 3.1% above its 10-week average. But investors might want to wait for Qorvo stock to move back above the March 2 high of 182.75. Also, the 5G chipmaker has an official 191.92 consolidation buy point.

SWKS stock rose 1.3% to 181.04, closing near session lows. But shares broke a downtrend and continued a rebound from the 10-week line, just 3.6% above that key level. The wireless chipmaker held up well in the tech sell-off, not losing sight of its 50-day/10-week lines.

Stock Market Rally Analysis

The Nasdaq moved a bit further above its 50-day line, though closing well off intraday highs. More tech stocks, especially chips, are setting up again.

But highly valued or speculative growth names generally have more work to do. That includes Tesla stock, Plug Power, CrowdStrike and others that have rebounded off recent lows, as well as names such as Zoom Video (ZM) that haven’t bounced much at all. In general, investors want to focus on stocks above their 21-day and 50-day averages.

Meanwhile, the Dow Jones and Russell 2000 fell, but after long winning streaks.

Many economy reopening plays, including travel, energy and mining, saw pullbacks Tuesday. But generally those sectors are still doing well.

Ideally, the stock market rally will show broad leadership, across a range of growth and real economy sectors. But it could be that the market will rotate back to techs, or that techs will falter once again.

Investors should be taking advantage of the resumed market uptrend, with many quality stocks breaking out or offering early entries. In this broad but uncertain stock market rally, diversifying your portfolio is especially important. Buy leading stocks from leading sectors, as always, but make sure there’s some variety. That will help you avoid big portfolio losses while also keeping you in tune with a variety of sectors.

Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.

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Entertainment

WandaVision episode 8 recap: Marvel show dives into Wanda’s painful past

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Wanda and Agatha go on a trip down memory lane.


Marvel Studios

WandaVision‘s sitcom formula spiraled into beautiful chaos Friday, as episode 8 of the Marvel Cinematic Universe show landed on Disney Plus. Turns out the witch Agatha Harkness (Kathryn Hahn) was responsible for pretty much all the weirdness we’ve seen so far, and she’s got Wanda Maximoff (Elizabeth Olsen) trapped in her ludicrously creepy basement.

Outside the house, newly superpowered SWORD agent Monica Rambeau (Teyonah Parris) was confronted by Pietro Maximoff (Evan Peters), who’s seemingly been under Agatha’s control since arriving from the X-Men universe. Also, astrophysicist Darcy Lewis (Kat Dennings) filled in Wanda’s husband, Vision (Paul Bettany), on the past he’d forgotten, and he’s on his way home.

I didn’t think this show was that complicated, but it kinda is. We’re up to the penultimate episode, and it’s called Previously On. Time for dem SPOILERS.

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The Scarlet Witch

This whole episode is basically Agatha trying to figure out exactly what Wanda is, since her power is off the charts. After running through pivotal moments in the Avenger’s past and acting as a pretty mean therapist, Agatha realizes she’s wielding Chaos magic and is capable of “spontaneous creation,” before uttering the thing we wanted to hear.

“And that makes you the Scarlet Witch.”

Agatha isn’t even pretending to be nice now.


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This isn’t a name we’ve heard previously in the MCU, but it’s been her code name since her first appearance in X-Men No. 4 in 1964.

Given what we saw earlier in the episode, it seems like Wanda had some latent ability to tap into this magic and it was enhanced by the Mind Stone. Agatha presumably wants to control this power, but to what end?

Agatha also has Wanda’s magically created kids Billy and Tommy on creepy magic leashes, which really isn’t OK.

Vision’s body is back online, and looking pretty nefarious. 


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The doppelganger

In a midcredits scene, it’s revealed that acting SWORD director Tyler Hayward (Josh Stamberg) had Vision’s body all along. He couldn’t reactivate the synthezoid (who was made with stupidly valuable Wakandan vibranium), but used a drone to absorb the chaos energy surrounding Westview. Since that energy was derived from the Mind Stone that originally brought Vision to life, it gets the body back online.

The Vision we’ve been seeing in Westview has actually been a magical construct, created by Wanda. 

Agatha’s past

The episode’s initial flashback brings us back to Salem, Massachusetts, in 1693 (the real-life Salem witch trials happened in 1692-93), when Agatha’s coven accuses her of tapping into forbidden dark magic.

“I did not break your rules. They simply bent to my power,” she replies, awesomely.

Agatha has a pretty epic past.


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Led by Agatha’s mother, Evanora (Kate Forbes), the coven prepares to end her. She turns their power on them, reducing all the witches to desiccated husks. Agatha also takes her mom’s broach, which we’ve seen her wearing in most of the previous episodes.

Much as I’ve grown tired of characters blasting each other with energy beams and lasers in superhero movies, the blue energy Agatha turns back on her coven seems significant. Her magic manifests itself as purple energy — a combination of red and blue. Since Wanda’s Chaos magic is red, it seems likely this was the forbidden power Agatha got in trouble for using — she just couldn’t use it at the same level as Wanda. 

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Fietro

Agatha says fake Pietro (Evan Peters) wasn’t “literally” her, she was just possessing him. She also notes that it wasn’t necromancy, so it wasn’t the original MCU Pietro’s body with a new face. 

It’s still unclear if Fietro is actually the one from the X-Men universe. In the comics, Wanda’s status as a Nexus Being — someone whose power can affect probability and change the flow of time — means she can touch other realities. If that’s the case with MCU Wanda, she could have pulled Pietro over from the Fox X-Men reality (where he was called Peter).

Also in the comics, Nexus Beings are monitored by the Time Variance Authority, a group that’ll show up in the upcoming Loki show and perhaps in next week’s WandaVision season finale.

The Maximoffs decide what to watch, minutes before their whole world is ripped apart.


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The Maximoffs at home

We meet Wanda and Pietro’s parents, Iryna and Olek (Ilana Kohanchi and Daniyar), in their Sokovian home. And we know the kids are 10, so this happened in 1999. Their TV night — The Dick Van Dyke Show, season 2, episode 21 — looks pretty nice, but there’s a horrifying war raging outside, and the sense of inevitability is palpable. 

The parents are killed in an explosion, an incident referenced in Avengers: Age of Ultron and the commercial in episode 2. The twins are trapped under the rubble, staring at a beeping, unexploded Stark Industries shell. The young Wanda mutters about it being a “bad dream” and reaches out.

Agatha reckons she used a probability hex to stop the detonation, which seems like Wanda’s first use of magic.


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Hail Hydra

We see Wanda as a volunteer test subject for Hydra, and enters a room containing Loki’s scepter (which Hydra sneakily got hold of after the first Avengers movie, a moment revisited in Avengers: Endgame) The Mind Stone — one the six Infinity Stones that Thanos will later use to wipe out half of all life — extracts itself from the scepter in her presence. 

She gets a vision of her comic book costume, but it’s unclear if this has any significance in the MCU. We saw her in a similar outfit in the Halloween episode and she said it was a Sokovian fortune teller, but she could have been subconsciously recalling this moment.

Wanda has a vision of the Scarlet Witch comic book costume.


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Wild thought: What if Wanda was actually seeing her comic book counterpart? As a Nexus being, it’s possible that comics Wanda could reach out to her MCU self.

We previously thought contact with the Mind Stone gave her and Pietro their powers, but Agatha reckons it awoke or supercharged her latent abilities.

As if Wanda is some kind of mutant.

When the Hydra scientists try to play back the security recording to see what happened after Wanda touched the stone, they find that moment missing, like when the Westview broadcast was cut.

Like any good couple, Wanda and Vision fell in love while watching Malcolm in the Middle.


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The Vision effect

We jump to a moment with Vision in the Avengers compound in the period following Age of Ultron, when Wanda is mourning Pietro’s death. Vision acknowledges that he’s never felt loss like she has, but reveals the depth of his empathy.

“But what is grief, if not love persevering?” he asks.

Excuse me, I have something in my eye. This is clearly another major high on Wanda’s emotional rollercoaster, and Thanos would later bring her low by killing Vision in Avengers: Infinity War.  

Hayward’s machinations

We previously thought Wanda broke into SWORD headquarters, stole Vision’s corpse and defied his wishes by resurrecting him. The flashback reveals that Hayward initially exposed Wanda to the shocking sight of his engineers dismantling Vision. He then suggested Wanda bring him back to life, but she refused and just left — no thievery or resurrection to be had.

Hayward’s sympathy routine is also pretty similar to one he used on Monica before sending her to Westview, because he’s a manipulative jerk.

Wanda recreates Vision.


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Westview gets a refresh

Wanda’s clearly feeling pretty low after visiting the SWORD facility, and she drives to Westview. It’s our first time seeing the New Jersey town before she sitcom’d it up, and it’s a sad place with closed businesses and amenities falling into disrepair — this could reveal the economic impact of the Blip. 

She visits a plot of land (2800 Sherwood Drive) with the foundations of a house, and a deed reveals she and Vision planned to start a life together here — a plan ruined by Thanos.

“To grow old in,” reads the cute note, signed “V.”

Overwhelmed by grief, she remakes the town as a ’50s sitcom and Vision is reborn from her magical energy. From the midcredits scene, it seems like Wanda played right into Hayward’s hands.

The Maximoffs have a lovely box of sitcoms.


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Sitcom heaven

In the case you’re wondering what the other options for TV night were, the box of DVDs includes Who’s the Boss?, The Addams Family, I Love Lucy, Bewitched, I Dream of Jeannie and Malcolm in the Middle.

However, Malcolm in the Middle didn’t air until Jan. 9, 2000, and the first DVD box set didn’t come out until 2002, so the Maximoffs couldn’t have had it in 1999. This suggests the timing was a little different in the MCU, or that Wanda’s memory is a little unreliable (probably the latter, since she previously misremembered when The Parent Trap and The Incredibles came out).

Later, in Wanda’s Hydra containment cell, she’s watching The Brady Bunch. It seems to be season 1, episode 7, in which Cindy Brady treats her doll like a real baby and it goes missing. Which seems to mirror what happened with Billy and Tommy. 

Observations and WTF questions

  • The purple Marvel Studios logo is super cool.
  • “Only the witch who cast the runes can use her magic.” This seems like the kind of line we’ll get a callback to later. Maybe Wanda will turn the tables on Agatha?
  • I guess the cicada wasn’t Mephisto.
  • And it turns out the people in the commercials weren’t Wanda’s parents after all. So who are they?!
  • This was the episode without the “Please Stand By” message in the credits.

Join us for more Easter eggs and observations next Friday, when episode 9 of WandaVision hits Disney Plus. It’s the season finale, so expect Westview to get leveled by colored beams of energy or something.

CNET’s Caitlin Petrakovitz contributed to this recap.

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