The Dow Jones Industrial Average briefly rallied 50 points early Wednesday, as Bitcoin slid and Treasury yields steadied. Apple and Tesla stock moved to snap win streaks, while tech giants Alphabet, Facebook and Microsoft remained in new buy zones.
Among the Dow Jones leaders, Apple (AAPL) declined nearly 1% Wednesday before paring losses, while Microsoft (MSFT) moved up 0.1% in today’s stock market. Boeing (BA) is back in buy range following Tuesday’s fall.
Dow Jones Today
The Dow Jones Industrial Average rose 0.15%, while the S&P 500 moved up 0.1%. The tech-heavy Nasdaq composite pared losses to less than 0.1% in morning trade.
The 10-year Treasury yield eased to 1.651% in morning trade, after tumbling to 1.656% on Tuesday.
Among exchange traded funds, the Innovator IBD 50 (FFTY) traded down 0.6% Wednesday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) inched 0.2% higher. Meanwhile, the SPDR S&P 500 ETF (SPY) gained 0.1%.
Stock Market Rally: Dow, S&P Hit New Highs
Amid the current stock market rally, the Dow Jones Industrial Average and S&P 500 eased from record highs Tuesday.
Meanwhile, the tech-heavy Nasdaq had regained its key 50-day moving average on Thursday and on Monday moved past resistance around the 13,600 level.
Tuesday’s Big Picture commented, “While consumer stocks and others benefit from easing restrictions on movement and contact, another sector has emerged as a stock market leader: housing and construction. IBD’s homebuilders industry group moved up to No. 110 out of 197 groups from No. 140 four weeks ago. The wood products industry group ranked No. 127 eight weeks ago; today, it’s No. 43. In fact, some lumber providers are now among the best-performing stocks as the price of lumber — a raw material for construction — soars.”
Bitcoin hit its high-water mark on March 13, topping out at $61,556. On Wednesday, the price of Bitcoin tumbled below $56,000 before paring losses. Bitcoin traded down 3% to $56,600 in morning trade, according to CoinDesk.
The Grayscale Bitcoin Trust (GBTC) fell another 3% Wednesday, extending Tuesday’s 4.4% decline.
Dow Jones Stocks: Boeing
Inside the Dow Jones Industrial Average, Boeing is back in buy range above a 244.18 buy point in a cup base. The 5% buy range goes up to 256.39.
Early Wednesday, shares fell 0.4%.
Stocks In Buy Zones: Alphabet, Facebook
IBD Leaderboard stock Alphabet is breaking out past a flat base’s new buy point at 2,145.24, according to IBD MarketSmith chart analysis. Shares are in the 5% buy zone that goes up to 2,252.50 amid Wednesday’s slight rise.
According to Leaderboard commentary, “Alphabet held up better than other big-cap techs when the sector slumped. Support at the 21-day line helped the stock climb to new highs. The stock also found support at the 50-day line. The last base was second stage, which is positive.”
Fellow FANG stock leader Facebook is trading just above a cup-with-handle’s 299.81 buy point. On Wednesday, Facebook stock rose 0.5% and is still in buy range.
Stocks To Buy And Watch: Nvidia, Yeti
Nvidia stock fell 0.3% Wednesday, looking to rebound from Tuesday’s 0.9% loss.
According to IBD Stock Checkup, Nvidia stock shows a solid 90 out of a perfect 99 IBD Composite Rating. The IBD Composite Rating helps investors easily measure the quality of a stock’s fundamental and technical metrics.
Tuesday’s IBD Stock Of The Day, Yeti, is trying to break out past a 76.87 buy point in a double bottom with handle. Shares dropped over 1% Wednesday morning.
Tesla stock cut losses to 0.8% Wednesday morning, but was still on pace to snap a two-day win streak. Shares of Tesla are eyeing their 10-week line, which is a key resistance level.
Tesla could be forming a new base, but it is too early for a new risk-optimal buy point.
On Feb. 22, Tesla broke down through its key 10-week moving average line, a critical support level. On Jan. 25, Tesla stock hit a record high at 900.40, after climbing as much as 93% from a 466 buy point in a cup with handle.
Dow Jones Leaders: Apple, Microsoft
Among the top Dow Jones stocks, Apple declined 0.1% Wednesday, on pace to snap a four-day win streak. Apple stock is rebounding from its 40-week line and could soon again try to reclaim its 10-week line.
On Feb. 18, Apple stock triggered the 7%-8% loss-cutting sell rule when it fell more than 7% below its 138.89 buy point in a cup with handle.
Microsoft is breaking out past a flat base’s 246.23 buy point and is in buy range.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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