The Dow Jones Industrial Average briefly fell by more than 300 points on Tuesday, while technology stocks fell sharply due to currency comments by Fed Chairman Powell. Bitcoin fell below $45,000. The share prices of electric vehicle leaders Nio and Tesla fell 15% and 12%, respectively, before reducing their losses.
Among the leaders of Dow Jones, apple (AAPL) fell 3.8%, while Microsoft (MSFT) fell more than 1% in today’s stock market. Disney (DIS) Return to the buying range above the entry. at the same time, The Home Depot Despite the strong performance early on Tuesday, (HD) fell 5%.
Tesla (TSLA) plunged 12% on Tuesday, while o (NIO) fell 15% because they all continued to fall sharply. Both parties significantly reduced the huge losses in early trading. Cadence Design System (CDNS) and Zoom information (ZI) released a strong earnings report on Monday night.
Apple, Microsoft, Tesla and ZoomInfo are IBD ranking stocks. Shoals Technologies is the IBD daily best stock on Thursday.
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The Dow Jones Industrial Average fell 0.2% on Tuesday, while the Standard & Poor’s 500 Index fell 0.3%. Nasdaq’s high-tech stocks fell 1.1% in early trading and plunged 3.9% in the minutes after the market opened.
Earlier Tuesday, Fed Chairman Jerome Powell reiterated that the Fed is “committed to using our full range of tools to support the economy and help ensure that the recovery during this difficult period will be as strong as possible”, Congress .
Powell commented that inflation and employment rates are still far below the Fed’s targets, which means that loose monetary policy may continue to exist.
U.S. stock market overview today
Last update: 10:36 AM EST 2/23/2021
Among exchange-traded funds, the innovator IBD 50 (FFTY) fell 4.5% on Tuesday. Invesco QQQ Trust ETF (QQQ), a Nasdaq 100 tracker, fell 2.3%. At the same time, the SPDR S&P 500 ETF (SPY) fell 1%.
Stock market rebound
Looking back at the current upward trend, November is a crucial month for the stock market. The “major trend” of IBD marked the subsequent trading day of the bullish market on November 4 and marked a new upward trend. At the same time, in mid-February, the Dow Jones Industrial Average, Nasdaq and S&P 500 fell from record highs.
Monday’s “Big Shot” warned: “Just four trading days ago, the market-capitalization-weighted Nasdaq Index hit a new all-time high, closing above 14,000 for the third consecutive trading day. But the past five trading days The fourth drop has now shrunk the index’s annual period. So far it has increased to 5%.”
Focus on stocks that have shown relative strength during the current period of weakness. If these indexes can return to their record-breaking ways, they may be market leaders.
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Bitcoin price diving
According to CoinDesk data, Bitcoin fell about 13% on Tuesday morning, briefly fell below US$45,000, and then fell to US$46,700 in early trading. The price of Bitcoin broke through $57,000 on Saturday, broke through $58,000 on Sunday, and finally broke through $58,332.
The Grayscale Bitcoin Trust (GBTC) ETF fell 12%, threatening to increase Monday’s 5.6% decline.
Dow Jones Stocks: Disney
According to the IBD MarketSmith chart analysis, within the Dow Jones Industrial Average, Disney’s buying price has returned to the buying point of 183.50. The 5% buying area rose to 192.68.
Disney’s stock price rose 4.5% on Monday and then reduced its decline to less than 0.1% on Tuesday morning.
Dow Jones earnings: Home Depot
Dow Jones giant Home Depot (Home Depot) fell more than 5% in early trading Tuesday, after the company’s earnings report. The stock is trying to find support near its 50 antenna.
The company’s fourth-quarter earnings and sales results were better than expected. Home Depot’s earnings increased 16% to $2.65 per share, including 9 cents in one-time costs related to the acquisition of HD Supply. Revenue increased by 25% to 32.26 billion US dollars. Same-store sales surged by 24.5%, and US same-store sales increased by 25%.
Stock market earnings: Cadence, ZoomInfo
Cadence Design Systems and IBD ranking stock ZoomInfo announced earnings after the close on Monday.
Cadence fell 4.65% on Monday to return to 50 antennas. After the close on Monday, Cadence reported strong fourth-quarter results. The company’s adjusted earnings per share in the second quarter were 83 cents and sales were $760 million. Analysts had predicted that Cadence would earn 74 cents per share and sales would reach 732 million US dollars.
The stock fell 2% on Tuesday morning.
ZoomInfo fell 6.25% on Monday and closed at 53.18 below the bottom of the cup. After the close on Monday, ZoomInfo announced strong fourth-quarter results and better-than-expected first-quarter sales expectations. The stock rose 11% on Tuesday morning.
According to the leaderboard comment, “ZoomInfo was added to the leaderboard after clearing a short handle on February 1. However, because the handle is too narrow, the alternative 53.18 is also valid. The latest version is the first after the enterprise software Stage. The company goes public in June.”
Tesla’s competitor, Nio, fell as much as 17% on Tuesday morning and 7.9% on Monday. In early trading, the stock reduced its losses to about 4%.
On Monday, the stock fell below the 50-day line, which was a key sell signal. At the same time, the stock price fell from the 57.30 buy point on February 18 to the 7%-8% impairment rule.
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Tesla’s shares threatened to extend the decline to four trading days on Tuesday, plummeting more than 13%, and then reducing the decline to 1.3%. On Monday, the stock broke its 50-day moving average (key support level).
According to Tesla’s website, Tesla stopped selling the cheapest Model Y Standard Range sports utility vehicle on Sunday.
On January 25, Tesla’s share price hit a record high of $900.40, after it had risen 93% from 466 buying points in a cup with a handle.
Dow Jones leaders: Apple, Microsoft
Among the top Dow Jones stocks, Apple shares fell 3.8% on Tuesday. Apple’s stock price is below its 10-week line, but a strong rebound back above that level will be bullish on the stock’s prospects.
On February 18, the stock triggered the 7%-8% reduction sell-off rule, when the stock fell below the 138.89 buy point in its handle cup, a drop of more than 7%.
Meanwhile, Microsoft fell more than 1% on Tuesday morning. The stock is trying to find support at its 232.96 buying point, but it is still below it.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information about growth stocks and the Dow Jones Industrial Average.
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