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The Nasdaq sold after the 10-year Treasury yield hit a year-high after the $ 1.9 trillion Biden stimulus package was passed. The Dow Jones Industrial Average, however, continued to recover with Boeing (BA) the first-rate artist. Meanwhile, Warren Buffett’s action StoneCo (STNE) fell hard on weak earnings.
X
Apple (AAPL) and Intel (INTC) were among the losers of the day, while You’re here (TSLA) and Nio (NIO) calmed down after a rebound.
The 10-year Treasury yield climbed to 1.635%, the highest level for the year so far. The yield on 30-year Treasury bills has also increased. Higher current inflation and higher expected inflation lead to higher yields. This is because investors will demand a higher return to offset the risk of inflation.
Some economists have warned that the $ 1.9 trillion stimulus bill, which President Joe Biden signed on Thursday, could fuel inflation. Edward Moya, senior market analyst in Oanda, believes Federal Reserve Chairman Jerome Powell may be forced to take a more proactive tone at next week’s Federal Open Market Committee policy meeting.
“Prior to today, bond yields seemed to stabilize and many analysts expected next week to be an easy FOMC policy meeting that was going to deliver much of the same rhetoric from Fed Chairman Powell,” he said in a note to clients. “If the bond market liquidation intensifies before the FOMC’s March 17 decision, the Fed may finally have to push back the movement in Treasury yields.”
Nasdaq Dives; S&P 500 slips
The Nasdaq fell about 1%, although it was not lower. China Stock JD.com (JD) was the worst performer of the composite, slipping almost 7%. DocuSign (DOCU) was another big loser.
The S&P 500 was down 0.2% more marginal. Ulta Beauty (ULTA) fell nearly 9% on low profits. The next worst performer was PerkinElmer (PKI), which posted a more moderate decline of just over 3%.
Snapshot of the US Stock Market Today |
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|---|---|---|---|---|
| Index | symbol | Price | Loss of profit | % Change |
| Dow jones | (0DJIA) | 32670.61 | +185.02 | +0.57 |
| S&P 500 | (0S and P5) | 3931.27 | -8.07 | -0.20 |
| Nasdaq | (0NDQC) | 13269.53 | -129.14 | -0.96 |
| Russell 2000 | (Etc.) | 232.92 | +0.70 | +0.30 |
| IBD 50 | (FFTY) | 46.96 | -0.18 | -0.38 |
Last updated: 13:22 ET 12/03/2021 |
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The volume was lower compared to the same time Thursday. Trading slipped 6% on the Nasdaq and 16% on the NYSE.
S&P sectors were mixed, led by financials. The biggest laggards were in communications technology and services.
Growth stocks were also constrained lower, with the Innovator IBD 50 ETF (FFTY) losing around 0.4%.
Boeing climbs and helps raise Dow Jones
The Dow Jones Industrial Average was the best performing major index, rising around 0.6%
Boeing was the best performing component, climbing over 6%. It exited the buy zone after breaking a base cup buy point of 244.18, according to MarketSmith analysis. The benefits, however, remain low.
Apple stock was among the Dow’s biggest losers, falling more than 1%. Apple has moved closer to its 200-day line and is below its 50-day line. The relative strength of Apple stocks must improve, as it has been declining since the end of January.
Intel was another lagging behind after falling more than 1%, but the Dow’s worst performer was Salesforce.com (CRM). The latter was down almost 2%
Warren Buffett share drop on earnings
StoneCo is still falling below its 50-day moving average. The stock fell after the release of fourth quarter results to 8% to 22 cents per share.
Warren Buffett is a great supporter of StoneCo. His Berkshire Hathaway (BRKB) owns 14.17 million shares, which represents more than 6% of all StoneCo shares.
Bank of New York Mellon (BK) managed to pass a buy point at 46.94 but stalled at that level. The stock, however, has a poor composite IBD rating of 49, with poor earnings and market performance. Banks find it difficult to make a profit when interest rates are low.
Tesla Stock, Nio Stock Stall
Tesla stock stalled again after Thursday’s gain. It was down about 2%. Nonetheless, he is on track to post a weekly gain of around 15%. Tesla’s RS line is improving after a recent dive.
Tesla stock has already crossed its 50-day moving average, but has remained well off its 200-day line. It has a composite rating of 94. Tesla’s recent poor performance caused it to lose its place in the rankings.
Chinese rival Nio also slipped, although he cut losses. It is down about 1.5%. He’s on track to gain about 19% for the week. The Nio stock remains stuck below its 50 day moving average, but is now well away from its 200 day line. The stock collapsed after a breakout of a failed entry of 57.30.
Please follow Michael Larkin on Twitter at @IBD_MLarkin to learn more about growth stocks and analysis.
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