Dow Jones Futures: “Mostly Dead” Stock Market Rally; Boeing leads long-term support for Zoom Break as Amazon



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Dow Jones futures fell on Wednesday night, as did S&P 500 and Nasdaq futures. The Dow Jones fell modestly on Wednesday while the Nasdaq fell to new lows, but the stock rally is not yet “all dead”.




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For real economy stocks, Wednesday was normal, if not positive. Boeing (BA), Citigroup (VS), Flagstar Bancorp (FBC) and Had (AVNT) has cleared points of purchase or early entries.

The sell-off in growth stocks continued as the Nasdaq undercut its intraday low of February 23. Home games Amazon.com (AMZN), Video zoom (ZM), Teladoc Health (TDOC), Datadog (DDOG) and 2U Inc. (TWOU) all fell below long term support. You’re here (TSLA) retreated to a closing low of 2021 as Nvidia (NVDA), Year (ROKU) and ServiceNow (NOW) has fallen decisively below their 10 week lines.

Marvell technology (MRVL), Snowflake (SNOW), Okta (OKTA) and Splunk (SPLK) presented its results on Wednesday evening. But all these tech stocks were breaking down or breaking down into quarterly results, falling sharply on Wednesday.

Marvell’s earnings were consistent and the outlook mixed. Snowflake saw strong revenue growth while Okta and Splunk beat views. Okta stock fell overnight in a $ 6.5 billion acquisition. Marvell fell sharply while SNOW’s stock edged up. Splunk stock, which is at its lowest in 10 months, has risen sharply.

Tesla stock and Nvidia are on the IBD rankings. ServiceNow inventory is on IBD’s long-term leader list. Tesla and Nvidia shares are on the IBD 50.

Dow Jones Futures today

Dow Jones futures fell 0.3% from fair value. S&P 500 futures fell 0.5% and Nasdaq 100 futures fell 0.7%.

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


Join the IBD experts as they analyze the exploitable stocks during the stock market rally on IBD Live.


Coronavirus news

Coronavirus cases around the world have reached 115.76 million. Covid-19 deaths have exceeded 2.57 million.

Coronavirus cases in the United States have reached 29.45 million, with deaths exceeding 531,000.

Wednesday stock rally

The stock rally ended, closing at the low of the session. Real economy names held up as tech giants pulled out and speculative names sold.

The Dow Jones Industrial Average fell 0.4% on Wednesday after being slightly positive for most of the session. Boeing stock has been one of the main Dow Jones winners, but Apple (AAPL) and Microsoft (MSFT) weighed on blue chips. The S&P 500 Index fell 1.3%, slipping back below its 21-day line, but remaining just above its 50-day mark. The Nasdaq composite fell 2.7%, crossing its 50-day line and breaking its February 23 low.

The 10-year Treasury yield rose 6 basis points to 1.47% after declining in recent days. The strong upward trend in long-term sovereign bond yields put pressure on the stock market rebound, especially on speculative growth.

Among the top ETFs, the Innovator IBD 50 ETF (FFTY) slipped 3.5%, while the Innovator IBD Breakout Opportunities ETF (BOUT) fell 3.25%. The iShares Expanded Tech-Software Sector (IGV) ETF was down 4.1%, with Zoom Video and NOW stocks making notable components. The VanEck Vectors Semiconductor ETF (SMH) lost 3.15%. One of SMH’s main holdings is NVDA stock.

Reflecting more speculative stocks, Ark Innovation ETF (ARKK) fell 5.9% and Ark Genomic Revolution ETF (ARKG) fell 6.3%. Both have reduced recent lows, with ARKK closing below them.

Tesla is the primary stake in Ark Investment’s ETFs, including ARKK. Teladoc and Roku shares are also Ark’s top five holdings, while Ark bought a lot of Zoom shares on Tuesday. Ark also has significant stakes in many smaller, less liquid names. Those will be hard to come out of, especially with Ark Invest revealing much of its daily buying and selling.

Boeing Stock briefly erupts

Giant of the Dow Jones Boeing (BA) climbed 2.4% to 228.56. Intraday, stocks hit 235.40, exiting a 229.71 cup buy point with a handle on a weekly chart. Citigroup stock rose 3% to 70.38, posting a base buy point of 69.52 cups, according to MarketSmith analysis. But Citi’s escape comes weeks after those of Goldman Sachs (GS), JPMorgan Chase (JPM) and even Wells fargo (WFC).

The Avient stock jumped 5%, coming out of a cup base in massive volume. Flagstar stock climbed 3%, rebounding higher from its 10 week line as it built the right side of its flat base. FBC was the IBD title for Wednesday. The Avient action was that of Tuesday.

Amazon, Zoom Video Break 200 days

Shares of Amazon, Zoom Video, Teladoc, Datadog and TWOU fell below their 200-day moving averages. AMZN stock fell 2.9% while the other four fell 3.75% -9.5%. For Zoom and Datadog shares, this was their very first close below 200 days.

Amazon’s inventory is one of the few trillion dollar companies.

Zoom Stock may be the ultimate coronavirus game, although Amazon and Teladoc have also thrived in the pandemic, with Datadog and 2U being cloud-based. As vaccinations ramp up and Covid restrictions ease, investors are betting the wealthy domestic companies will see slower growth.

Teladoc, Datadog and 2U shares hit new highs just a few weeks ago.

Tesla stock fell 4.8% to 653.20, the lowest close since December 23 but above last week’s 619 intraday low. Roku stock fell 5.2%, Nvidia 4.5% and ServiceNow fell 6.1%.

Stock market rally “ almost dead ”

Is this a violent market spin out of growth or the start of a tech-driven market correction? Looking strictly at the Nasdaq and the tech leaders, it looks like a market correction. But the Dow Jones and cyclical sectors have held up well as the S&P 500 is still above its 50-day line, just barely.

The market rally may be “almost dead,” to quote Miracle Max from “Princess Bride,” but it’s still “slightly alive.” But where is Miracle Max to restart the rally? At this point, any further weakness would likely push the gathering “almost dead” to “all dead”. On the other hand, it would take a lot to bring the market rally back to life, much like Princess Bride’s Wesley.

It’s an important day to read The Big Picture to stay in tune with market direction and major stocks and sectors.

One thing is for sure, growth, especially speculative growth, is out of favor. Stocks might rebound quickly or in several weeks or months, while some might never rebound.

Don’t focus on the 2020 winners like Zoom Stock or Datadog if they are performing poorly now.

Investors should take a defensive stance, at least with tech names. If your stocks lose, you are either out of sync with the market or the market itself is out of sync. Consider investing more in mining, industrials, agriculture, and financials. But if the entire market reverses decisively, recent relative winners are likely to collapse as well.

Cash is king in a correction, and keeping a lot of it in today’s market climate is a smart move.

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

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