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The Dow Jones Industrial Average traded lower in the current stock market as the major indices sell off, erasing all gains from the previous trading day. Tech stocks led lower, while the 10-year Treasury yield hit its highest level in a year. In the final hour of trading, the major indices moved closer to their lows of the day.
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Stock exchange today
At the close, the Russell 2000 Small Cap Index collapsed 3.7%. Meanwhile, the Dow Jones closed down nearly 1.8%. The S&P 500 fell 2.5% while the Nasdaq composite fell 3.5%. Volume was higher on the Nasdaq and NYSE from Wednesday’s close, according to preliminary data.
The Labor Department said Thursday that initial weekly jobless claims fell from 111,000 to 730,000 seasonally adjusted last week. It was also the largest drop in new requests for the state’s regular programs since last summer.
Meanwhile, the 10-year Treasury yield hit its highest level in more than a year, rising 9 basis points to above 1.49%. This is important because the yield now exceeds the dividend yield of the S&P 500 by 1.48%. The result is a drop in demand for riskier assets like growth stocks. This has contributed to the sharp drop in tech stocks in recent days.
Snapshot of the US Stock Market Today |
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|---|---|---|---|---|
| Index | symbol | Price | Loss of profit | % Change |
| Dow Jones | (0DJIA) | 31400.50 | -561.36 | -1.76 |
| S&P 500 | (0S and P5) | 3829.25 | -96.18 | -2.45 |
| Nasdaq | (0NDQC) | 13119.43 | -478.54 | -3.52 |
| Russell 2000 | (IWM) | 218.58 | -8.42 | -3.71 |
| IBD 50 | (FFTY) | 44.88 | -2.05 | -4.37 |
Last updated: 16:28 ET 25/02/2021 |
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The treasures are considered risk free. Stocks are viewed as riskier securities, but have now lost their premium over bonds. This increases the risk that some investors will switch from stocks to bonds.
Moreover, the Innovator IBD 50 ETF (FFTY) fell 4.4%, wiping out its gains from the previous trading session. The growth-focused index slumped as growth stocks took a hit in favor of less risky assets. The stocks leading the growth-oriented ETF’s decline were MaxLinear (MXL) and MarineMax (HZO), with losses of over 9% each.
Dow Jones today
The Dow Jones sold on Thursday, as Boeing (BA) and Intel (INTC) led the decline with respective losses of 5.6% and 4.4%.
According to MarketSmith’s analysis, Boeing shares are building the bright side of a 12-week consolidation. The stock now remains at 11% of its appropriate buy point of 244.18. Stocks test support at the 50 day line after just recovering that area.
Investors should note that the stock has a very low IBD Composite rating of 9 on a scale of 1 to 99. Additionally, its EPS rating is 1 out of a best 99 possible.
The Intel stock is now 6% off a 64.05 cup base buy point. Some of the stock of chips has formed the base of the cup over the past six weeks. The stock maintains a decent composite rating of 80 with a low relative strength rating of 50.
Elsewhere in the Dow, 3M (MMM) was one of three stocks that posted a slight gain on Thursday. Shares rose 0.6%. The stock is currently trading in a 5% buy zone from a double base with 177.56 buy points. The buy zone tops out at 186.43. Stocks recently tested support at the 50 day line.
Electric vehicle stocks plummet
Beyond the Dow Jones, shares of electric vehicles were hit hard on Thursday, as shares of You’re here (TSLA) and Nio (NIO) recorded big losses. Recent IPO stock Li Auto (LI) also slipped almost 10% despite a surprise profit.
IBD Leaderboard Title Tesla faced a tough setback on Thursday, losing more than 8%. The stock fought back hard after selling up 13% during Tuesday’s session. Stocks currently remain below the 50 day line after falling below that level on Monday. The electric vehicle maker has reportedly halted production of its Model 3 sedan at its Fremont, Calif. Plant amid a global chip shortage hitting the auto industry.
Elsewhere, Chinese VE maker Nio fell more than 9%. The stock’s previous breakout from a cut-based buy point of 57.30 failed. Stocks also remain below the 50 day line. The China-based company is expected to release its fourth quarter and full year 2020 results on Monday.
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