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The Dow Jones Industrial Average plunged more than 400 points Thursday at noon as stocks sold despite better-than-expected weekly jobless claims data.
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The Nasdaq fell 3.4%, the S&P 500 lost 2.2% and the Dow Jones industrialists gave up 1.5% on the stock market today. Small caps followed by the Russell 2000 fell 2.8%. Volume was higher on the two major exchanges compared to the same time on Wednesday.
Early Thursday, the Labor Department reported that first-time jobless claims had dropped to 713,000 by the week ended February 20. This was well below the 861,000 requests the week before. Economists expected a much smaller drop, to 825,000 claims.
Rising bond yields have alarmed equity investors. The 10-year Treasury yield hit its highest level since February 2020, up 7 basis points to 1.45%.
Tech stocks propelled the Nasdaq to a 43.6% gain in 2020 for its fifth best year in history. The S&P 500 rose 16.3% and the Dow Jones added 7.2% last year. Read The Big Picture for a detailed daily market analysis.
Covid-19 update
The Covid-19 pandemic continues to rock the U.S. economy, as nationwide lockdowns approach the one-year mark. But there are signs of hope as vaccinations roll out and cases start to level off in some states.
Snapshot of the US Stock Market Today |
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|---|---|---|---|---|
| Index | symbol | Price | Loss of profit | % Change |
| Dow Jones | (0DJIA) | 31559.68 | -402.18 | -1.26 |
| S&P 500 | (0S and P5) | 3852.47 | -72.96 | -1.86 |
| Nasdaq | (0NDQC) | 13,215.09 | -382.88 | -2.82 |
| Russell 2000 | (Etc.) | 220.49 | -6.51 | -2.87 |
| IBD 50 | (FFTY) | 45.18 | -1.75 | -3.73 |
Last Updated: 12:54 PM ET 25/02/2021 |
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Cumulative cases of Covid-19 worldwide have exceeded 113 million with more than 2.5 million deaths, according to Worldometer. In the United States, cases are now approaching 29 million with nearly 519,000 deaths, although the number of new cases in the United States has slowed considerably in recent weeks.
As countries rush to administer vaccines, Modern (MRNA) jumped nearly 5% in twice normal trade. But he halved the trade’s gains by early afternoon. Moderna stock found support at its 50-day moving average earlier this week after a failed breakout.
Biotechnology reported a larger-than-expected fourth-quarter loss on Wednesday. But sales have more than doubled Wall Street targets due to rapid growth in vaccine manufacturing plans. Moderna’s Covid-19 vaccine is one of two vaccines authorized in the United States for emergency use. Analysts expect Moderna to make its first annual profit this year.
Also on Wednesday, Moderna said it had made a coronavirus vaccine to test for a disturbing mutation outside South Africa. The new vaccine has already been shipped to the National Institutes of Health for clinical studies.
Dow losers and winners
Boeing (BA) has dropped over 4% in rapid turnover rate as he continues to shape the right side of a cup base. The potential buy point is 244.18, according to MarketSmith chart analysis. On Wednesday, Boeing stock rose 8%.
The Federal Aviation Administration makes it mandatory to inspect engines before Boeing 777s equipped with a certain Pratt & Whitney engine can fly again. The warrant comes after a failed plane to Hawaii shortly after take off from Denver.
Among other Dow stocks, large-cap technologies Apple (AAPL), Intel (INTC) and Salesforce.com (CRM) yielded more than 2% each. Apple recently triggered the 7% -8% lossy sell rule from a buy point of 138.89 on a cup-and-handle basis.
Nike (OF) and 3M (MMM) grew by less than 1% each. Nike is shaping a nine-week flat base with a buy point of 148.05. It’s about 8% from the entrance. HSBC upgraded the athletic shoe giant to buy on hold and increased its price target to 158 from 125.
Outside the Dow
Tour operators, automakers and chip stocks led the decline among IBD’s 197 industry groups. Consumer electronics retailers, department stores, and online retailers held up to the decline.
Electric vehicle manufacturer Li Auto (LI) slipped 11% in heavy trade, despite higher fourth quarter profit and sales. The results included a surprise profit and a 356% year-over-year increase in auto deliveries in January.
You’re here (TSLA) fell 7% as it continues to trade below its 50-day moving average, which it broke this week for the first time since November. Stocks are 21% of their high but remain well-extended from a buy point of 466. Still, taking profit may be prudent as Tesla has triggered two sell signals. Tesla is an IBD Leaderboard share.
In the consumer electronics retail group, GameStop (GME) soared 65% in massive volume as Reddit / WallStreetBets appeared to be back in the short-squeeze game. On Wednesday, stocks jumped 104%. AMC Entertainment (AMC) jumped 10%, on track to extend their winning streak to five. Shares rose 18% on Tuesday and Wednesday.
Bitcoin rebounded above $ 51,000 and was traded up 3% to $ 51,177 on Wednesday noon, according to Coindesk. But by early afternoon, it was back below the $ 50,000 level. The Grayscale Bitcoin Trust (GBTC) fell 2.5% and was below the buy point of 48.75 of a V-shaped cut pattern.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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