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The Dow Jones Industrial Average has hit a new high in the current stock market. The Nasdaq ended in a loss of more than 100 points, as yields on US Treasuries resumed their ascent. The S&P 500 fell slightly. Still, over the last hour of trading, all three major indices have trended higher from their intraday lows.
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Stock exchange today
The Russell 2000 Small Cap Index traded 0.2% higher. The Nasdaq composite fell 0.9%, leading the market lower. The S&P 500 traded 0.1% lower while the Dow Jones posted a 0.7% increase. Volume was lower on the NYSE and Nasdaq, compared to the same time Thursday.
The Nasdaq sold off after the 10-year Treasury yield hit its highest level of the year so far, reaching as high as 1.635%. The yield on 30-year Treasury bills has also increased. Investors demand a higher return to offset the risk of inflation. Therefore, higher current inflation and higher expected inflation can lead to higher yields.
Recently, several economists warned that the $ 1.9 trillion stimulus bill signed by President Joe Biden on Thursday could fuel inflation. Federal Reserve Chairman Jerome Powell may be forced to take a more proactive tone than expected at the Federal Open Market Committee policy meeting next week.
In addition, inflation gauge data released by the Labor Department on Friday morning showed producer prices were slightly higher than expectations in February.
Sector rotation continues
The Innovator IBD 50 ETF (FFTY) fell 0.8% on Friday. The ETF still holds a gain of over 7% for the week. Growth equities ETF stocks regained support at the 50-day mark on Thursday. The stocks leading the growth-oriented ETF’s decline were MDC Fund (MDC) and Dynatrace (DT), with losses of more than 4% each.
MDC Holdings is currently expanded from a cup base with handle with 48.62 purchase points. Stocks are trading just below the 20% to 25% profit zone. Meanwhile, Dynatrace barely came out of the buy zone of a consolidation entry of 48.95. Stocks have recently found strong support at the 50 day line.
Internet content, software and chipsets stocks led the decline among IBD’s industry groups as sector rotation away from these key industries continues. But consumer electronics retailers, airlines and steel stocks were among the top performers.
Dow Jones today
The Dow Jones held a strong gain as many blue chips traded higher. The stocks leading upward were Boeing (BA), caterpillar (CAT) and Walgreens (WBA).
Boeing shares traded more than 6% on Friday. Boeing shares rose in volume as they traded above the buy zone from a cut base with a buy point of 244.18. The buy area reached 256.28, according to MarketSmith analysis. The stock recently returned to its 50 day line, a bullish sign, and is now extended.
Investors should be aware that the security maintains low IBD ratings, including a composite 29 rating and a 60 RS rating. But as panelists noted on Friday’s IBD Live show, fundamental market recoveries tend to display such rankings in the early stages of their comeback.
Elsewhere, Walgreens stock has risen more than 3% as stocks near a 55.59 buy point from a handle-cup base. The stock remains at 4% of the key buy zone. Stocks also found strong support at their 50-day line last week and have risen since.
In the Dow Jones
Meanwhile, several technology leaders from Dow Jones sold out on Friday.
Technology giant Microsoft (MSFT), a member of the Leaderboard, fell less than 1%, with stocks remaining in the buy zone of a consolidation buy point of 232.96. The stock recently found support near the 50-day moving average. Microsoft shares remain around 4% of their 52-week high.
To finish, Intel (INTC) fell by less than 1%. Stocks continue to approach a new buy point from a massive double bottom base, according to MarketSmith chart analysis. The base maintains an entry point of 65.21. Stocks remain at 7% of the key buy zone.
The graph could also be interpreted as a cup base with handle with a correct entry at 63.64. Stocks recently returned to their 50 and 200 day lines.
Tech giants Apple (AAPL) and Salesforce.com (CRM) led the decline among blue chips with losses of over 1%.
Follow Fox on Twitter at @foxonstocks for more Dow Jones and market commentary.
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