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The Dow Jones Industrial Average fell more than 100 points on Tuesday, as Fed chief Jerome Powell called the US economy “much improved.” Treasury yields have retreated from recent highs. EV giant Tesla’s stock has reversed lower, while chip giants Applied Materials and Nvidia are stocks to watch.
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Among the leaders of the Dow Jones, Apple (AAPL) fell 0.6% on Tuesday, while Microsoft (MSFT) rose 0.8% in the current stock market. Boeing (BA) is back in the buy range following a recent breakout.
You’re here (TSLA) reversed the decline on Tuesday morning after Monday’s 2.3% gain.
Among the best stocks to watch, chip leaders Applied materials (AMAT), ASML (ASML), MKS Instruments (MKSI), Nvidia (NVDA) and Qorvo (QRVO) show leadership potential in the current stock rally.
In the meantime, Alphabet (Google T Wayfair (W) are in or near shopping areas. Alphabet was listed 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 stocks in the IBD ranking. MKS Instruments was the IBD title for Tuesday.
Dow Jones Today: Treasury Yields, Powell Comments
The Dow Jones Industrial Average fell 0.3%, while the S&P 500 was down 0.1%. The high tech Nasdaq composite cut losses to 0.1% after reversing the morning trade decline.
Snapshot of the US Stock Market Today |
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|---|---|---|---|---|
| Index | symbol | Price | Loss of profit | % Change |
| Dow jones | (0DJIA) | 32618.64 | -112.56 | -0.34 |
| S&P 500 | (0S and P5) | 3931.60 | -8.99 | -0.23 |
| Nasdaq | (0NDQC) | 13326.48 | -51.06 | -0.38 |
| Russell 2000 | (Etc.) | 221.14 | -4.09 | -1.82 |
| IBD 50 | (FFTY) | 45.74 | -1.11 | -2.37 |
Last updated: 10:50 ET 23/03/2021 |
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On Tuesday, Fed Chairman Powell and Treasury Secretary Janet Yellen will appear before the United States House Committee on Financial Services. In prepared remarks, Powell said the US economy was “much improved”, but the recovery was “far from complete”. He commented that the Fed “will continue to provide the economy with the support it needs for as long as it takes.”
The 10-year Treasury yield fell below 1.7% on Monday, following Thursday’s peak of 1.757%. Early Tuesday, the 10-year Treasury yield eased further to 1.661%.
Among exchange-traded funds, the Innovator IBD 50 (FFTY) fell 0.6% on Tuesday. The Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) lost 0.4% on Tuesday. Meanwhile, the SPDR S&P 500 ETF (SPY) fell less than 0.1%.
Stock market rally: the Nasdaq tests its key level again
Amid the current stock rally, the Dow Jones Industrial Average and S&P 500 indices broke two-day losing streaks on Monday with modest gains.
Meanwhile, the highly technological Nasdaq is again trying to regain its key 50-day moving average line, but failed on Monday. Last Thursday, the Nasdaq composite dropped this key level. The Nasdaq will need to overcome this major hurdle in order to maintain its upward trajectory. The 50 day line is a critical potential resistance level. If the Nasdaq decisively erases it, new highs could be on the horizon.
IBD’s market outlook was revalued to a “confirmed uptrend” on March 10, as the Dow Jones Industrial Average hit new highs.
Monday’s Big Picture commented, “The Nasdaq climbed 1.2%, a good follow-up after Friday’s bullish price reversal. But a late swoon cost the index nearly half of its gain for the day, a sign that the stock market’s confirmed uptrend remains delicate. Composite closed just below its 50-day moving average after peering above earlier in the day. “
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Dow Jones Stocks: Boeing
In the Dow Jones Industrial Average, Boeing is back in the buy range above a 244.18 buy point in a cup base, according to IBD MarketSmith’s chart analysis.
Shares fell 1% on Tuesday.
Chip stocks to watch: applied materials, Nvidia
Chip stocks continue to be among the top tech names in the current stock market rally. The VanEck Vectors Semiconductor ETF (SMH) was a new IBD SwingTrader addition on Monday amid a 2.3% rise. The ETF fell 0.9% on Tuesday morning.
Applied Materials continues to rebound from its 50-day support level. Shares fell 0.6% on Tuesday and are only 4% from new highs.
ASML rose above its 50-day line on Monday, but fell about 1.4% on Tuesday. The shares are in the sixth week of a potential base. The minimum length of a cup base is six weeks, so a new point of purchase could emerge at the end of the week.
Qorvo found support on its 50-day line on Friday and continued its rebound on Monday with a rise of 1.9%. The shares are approaching a buy point of 191.93, while an early entry exists at 185.96. Early Tuesday, Qorvo stock fell 0.9%.
Recent IBD Stock Of The Day MKS Instruments finished just below its 177.46 buy point in a double bottom amid Monday’s 2.4% gain. The 5% buy area rises to 186.33. Tuesday morning, the title fell 1.3%.
According to IBD Stock Checkup, MKSI stock enjoys a perfect composite rating of 99 IBD. IBD Composite Rating helps investors easily measure the quality of a stock’s fundamental and technical indicators.
Chip giant Nvidia rose 0.5% on Tuesday. The graphics chip maker could form the right side of a new base, but it’s a bit too early for a conventional point of purchase. A good day to recover the 50 day line would be bullish for the outlook for the stock.
Stocks near purchasing areas: Alphabet, Wayfair
IBD Leaderboard Alphabet stock closed a five-week fixed base on Friday, creating a new buy point at 2,145.24, according to IBD MarketSmith’s chart analysis. The shares are about 6% lower than the new entry. GOOGL stock rose 0.3% on Tuesday.
According to the leaderboard commentary, “Alphabet has made better progress than other large-cap tech lately. Support at the 21-day line defines the chart’s current action. The last base was the second step.”
Monday’s IBD 50 Stocks To Watch pick Wayfair is trying to break through a buy point of 343.09 in a handle mug. Stocks rebounded 0.3% on Tuesday and are in the buy range.
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Tesla stock
Tesla stock reversed early gains to retreat on Tuesday morning. The stock jumped 2.3% on Monday, after Cathie Wood’s ARK Invest announced its new price target of 3,000 by 2025.
Tesla shares closed around 26% of their 52-week high on Monday. Tesla stock could form a new base, but it’s too early for a new risk-based optimal buy point.
On February 22, Tesla broke its main line 10-week moving average, a critical support level. On January 25, Tesla stock hit an all-time high at 900.40, after climbing 93% from a buy point of 466 in a handle mug.
Dow Jones Executives: Apple, Microsoft
Among the major stocks in the Dow Jones, Apple fell 0.6% on Tuesday, threatening to give back some of Monday’s 2.8% gain. Apple stock is bouncing off its long-term 40 week line and may soon try to recover its 10 week line again soon.
On February 18, Apple stock triggered the 7% to 8% loss reduction sell rule when it fell more than 7% below its buy point of 138.89 in a cup with handle.
Meanwhile, software giant Microsoft rose 0.8% on Tuesday, still moving above its key 50-day line. Stocks are back above their buy point of 232.96 and move closer to a buy point of 246.23 in a new flat base.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and the Dow Jones Industrial Average.
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