Dow Jones Hits New High As Stock Market Gains Fade; Bitcoin Soars Again – Investor's Business Daily

Key market indexes moved off session highs midday Tuesday, but the Dow Jones Industrial Average held a small gain as it marked a new high.


The Dow Jones industrials climbed 0.1%, the S&P 500 dipped 0.1% and the Nasdaq fell 0.4% in the stock market today. Small caps tracked by the Russell 2000 edged 0.1% lower. Volume was higher on both major exchanges vs. the same time Friday.

Tech stocks boosted the Nasdaq to a 43.6% gain in 2020 for its fifth best year ever. The S&P 500 rose 16.3% and the Dow added 7.2% last year. Read The Big Picture for detailed daily market analysis.

The Covid-19 pandemic continues to roil the U.S. economy, as nationwide lockdowns approach the one-year mark. But there are signs of hope as vaccinations roll out and the number of cases starts to plateau in some states.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 31452.67 -5.73 -0.02
S&P 500 (0S&P5) 3924.86 -9.97 -0.25
Nasdaq (0NDQC ) 14006.55 -88.92 -0.63
Russell 2000 (IWM) 225.15 -2.11 -0.93
IBD 50 (FFTY) 48.49 -0.70 -1.42
Last Update: 12:12 PM ET 2/16/2021

Cumulative Covid-19 cases worldwide are approaching 110 million with over 2.4 million deaths, according to Worldometer. In the U.S., cases have surpassed 28.3 million with nearly 500,000 deaths.

Dow Winners And Losers (CRM) led the Dow with a 4% jump in twice normal trade volume. The stock is working on the right side of a 14-week consolidation with a 271.02 buy point, according to MarketSmith chart analysis. It’s about 8% away from the entry. Salesforce reports Q4 earnings Feb. 25.

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Among other blue chip winners, Caterpillar (CAT), Chevron (CVX) and JPMorgan Chase (JPM) added more than 2% each.

Walgreens Boots Alliance (WBA), down 2%, was the biggest loser. Apple (AAPL), UnitedHealth (UNH) and Cisco Systems (CSCO) were among seven other stocks down more than 1% each.

Apple remains below a 138.89 buy point of a cup with handle. Shares gave up the entry on Jan. 28. The stock continues to hold just above its 50-day moving average.

Today’s Breakouts

Breakouts included BHP Group (BHP), which gapped up and soared nearly 8% to clear a 74.51 buy point of a five-week flat base. Shares remain in potential buy range, which goes up to 78.24. BHP Group’s American depository shares gapped up nearly 7%, breaking out past a 61.07 flat-base entry in heavy trade. The buy zone tops out at 64.12.

The Australia-based mining giant reported a 16% jump in profit on 15% higher sales for its fiscal first half ended Dec. 31, thanks to surging iron ore prices. BHP also said it will pay a record interim dividend of $1.01 per share, up from 65 cents last year.

“The megatrends that we see playing out around global population growth, the electrification thematic and the energy transition, all of these bode well for commodity demand over the medium-to-long term,” CEO Mike Henry said in a Bloomberg Television interview.

PNC Financial Services (PNC), up 3%, cleared a 162.84 buy point of a flat base to mark a new high. Volume, though, was running below average. The strongest breakouts tend to occur in volume at least 40% higher than normal. The bank’s shares are in potential buy range up to 170.98.

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Bitcoin And Beyond

Early Tuesday, the price of Bitcoin jumped more than 3% to all-time highs. Bitcoin reached as high as $50,584 before paring gains to about $48,900 in late morning trade, according to CoinDesk. The Grayscale Bitcoin Trust (GBTC) rallied 4.5% to a record high.

Hot IPO stock Palantir Technologies (PLTR) gapped down and dived more than 10% before slightly paring losses. Shares are testing support at the 50-day line. The enterprise software maker reported strong Q4 results, but 2021 revenue guidance came in slightly below expectations. Palantir is an IBD Leaderboard stock.

Over in the IBD 50, fellow Leaderboard stock Generac (GNRC) surged 6% in heavy volume to a new high. Shares are well extended from any buy point. Stifel raised the stock’s price target to 340, from 213, based on Q4 results. The maker of emergency power generators has forged a space in the solar energy market.

But the Innovator IBD 50 ETF (FFTY) pulled back 0.9% after hitting new highs last week.

Follow Nancy Gondo on Twitter at @IBD_NGondo


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