Dow Jones Slides As Yellen Warns Of Rising Inflation; Covid Moderna stock increases

The Dow Jones Industrial Average reversed lower, slipping 125 points on Friday, as Treasury Secretary Yellen warned of rising inflation. Covid vaccine maker Moderna jumped on including the S&P 500, as Tesla looked to extend its decline to a third day.

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Among the leaders of the Dow Jones, Apple (AAPL) rose 0.4% on Friday, while Microsoft (MSFT) rose 0.6% in today’s stock market. Mcdonalds (MCD) passed a new buy point on Wednesday, but returned below the entry.

You’re here (TSLA) was on track to extend a three-day losing streak, slipping nearly 1% on Friday morning. Covid vaccine manufacturer Modern (MRNA) jumped 9% on news of its entry into the S&P 500 index on July 21.

Among the best stocks to buy and watch, Advanced micro-systems (AMD), Pay Pal (PYPL), Year (ROKU) and Shopify (SHOP) are in or near new shopping areas.

Microsoft, PayPal and Shopify are stocks of the IBD ranking. Roku is an IBD SwingTrader share. PayPal was featured in this week’s Stocks Near A Buy Zone column.

Dow Jones Today: Comments from Yellen

The Dow Jones Industrial Average reversed lower to fall 0.4% on Friday, while the S&P 500 lost 0.3%. The tech-rich Nasdaq fell 0.4% in morning trading.

Snapshot of the US Stock Market Today
Index	symbol	Price	Loss of profit	% Switch
Dow jones	(0DJIA)	34878.67	-108.35	-0.31
S&P 500	(0S & P5)	4347.91	-12.12	-0.28
Nasdaq	(0NDQC)	14502.11	-41.02	-0.28
Russel 2000	(IWM)	216.84	-0.79	-0.36
MICI 50	(FFTY)	42.14	-0.22	-0.52
Last updated: 10:26 AM ET 07/16/2021

Late Thursday, Treasury Secretary Janet Yellen warned that prices could continue to rise for several months. “We will still have several months of rapid inflation,” Yellen told CNBC. “So I’m not saying it’s a one-month phenomenon. But I think in the medium term we’ll see inflation come back to normal levels. But, of course, we have to keep a watchful eye. “

Earlier Thursday, Federal Reserve Chairman Jerome Powell defended the Federal Reserve’s easy money policy. “It’s a shock going through the system associated with reopening the economy and pushing inflation well above 2%, and of course we’re not comfortable with that,” said Powell.

Stock exchange rally

The S&P 500 came close to record highs on Friday, as the Nasdaq looked to snap a three-day drop with modest gains. Dow Jones Industrials are trading just below the all-time high set in early May.

Thursday’s Big Picture column noted, “The stock market remains in a confirmed uptrend, even as the number of distribution days begins to climb. The S&P 500 has five distribution days, including a stall day on Wednesday. Nasdaq was down to three on Thursday after narrowly missing a day of distribution on Wednesday due to lower volume. “

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

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Stocks to buy and watch: AMD, PayPal, Roku, Shopify

Chip giant Advanced Micro Devices traces a cup with a handle that shows a buy point of 95.54, according to graphical analysis from IBD MarketSmith. Shares rose 0.6% on Friday morning and are around 10% of the new buy point.

According to IBD Stock Checkup, AMD stock has a strong IBD Composite Rating of 97 out of 99. The IBD Composite Rating identifies stocks with a mix of strong fundamental and technical characteristics. AMD was billed as the IBD Stock of the Day Tuesday.

Shares in the IBD rankings PayPal is in the 5% buy zone after a cup with the handle’s buy point of 296.11 after last week’s breakout. The 5% buy area rises to 310.92. Shares rose 0.1% on Friday and are squarely in the buy range.

On June 17, the major payment processor broke a cup base entry of 277.96 and is comfortably above that level. The rankings noted that the stock’s growing relative strength line is a positive attribute, even though it remains below its 2021 high.

Roku is trading at around 7% of the buy point of 463.09 of a mug with handle. Shares lost 0.6% on Friday. Roku is an IBD SwingTrader share.

Shopify is still below a point of purchase of 1,552.33 in a handle mug. Shares fell 0.1% on Friday after Thursday’s 1.5% drop.

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Moderna stock skyrockets on inclusion of S&P 500

Vaccine maker Moderna jumped 9% to new highs on Friday morning when it announced its addition to the S&P 500 Index. Alexion Pharmaceutical (ALXN) on July 21.

Moderna’s stock is heavily extended from a mug with the handle’s purchase point of 189.10.

Tesla shares

Tesla stock fell 0.3% on Friday morning, in a bid to extend a three-day losing streak. The electric vehicle giant is again testing support around its 200-day long-term moving average. Another strong show of support at these levels would look bullish for the stock’s outlook.

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 Dow Jones stocks, Apple gained 0.4% on Friday, recouping some of Thursday’s 0.45% loss. The stock hit a new all-time high on Thursday before reversing lower.

Apple stock is extended beyond the 5% buy zone from an entry of 137.17 in a cup base, according to IBD MarketSmith’s chart analysis.

Microsoft continues to trade solidly above the buy point of 263.29 cups. Shares gained 0.6% on Friday after Mizuho’s price target hiked. The stock is extended above the 5% buy zone, which climbs to 276.45.

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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Dow Jones recovers 35,000 today as stocks climb on retail sales data; points of moderna; Starbucks Tops Purchase Point