Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, were little changed Monday night after tech stocks sold sharply. Bitcoin fell from all-time highs, while Tesla shares plunged through a key support level.
On Monday, the Nasdaq high-tech composite sold 2.5%, its worst day since Jan. 27. The S&P 500 was down 0.8%, while the Dow Jones Industrial Average was up 0.1%.
Among the leaders of Dow Jones, Apple (AAPL) fell 3%, while Microsoft (MSFT) decreased 2.7%. Shares of Apple fell further below their 10-week line, while Microsoft is testing a recent buy point. Disney (DIS) is back in buying range after Monday’s strong gain.
Tesla (TSLA) sank 8.55% on Monday, breaking its 50-day support level.
Monday at the last minute, Cadence Design Systems (CDNS), Palo Alto Networks (PANW) and ZoomInfo (ZI) reported earnings results.
Among the main stocks in or near buy zones, there is a hot initial public offering Shoals Technologies (SHLS) is trying to beat a new buy point, while Trade table (TTD) continues to build a new foundation.
Apple, Microsoft, Tesla and ZoomInfo are IBD rating stocks. Shoals Technologies was the stock of the day for IBD on Thursday. Trade Desk was featured in the Stocks Near A Buy Zone column this week.
Dow Jones Futures Today
After the stock market closed on Monday, Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, were slightly higher than fair value. Remember that futures trading on the Dow Jones and elsewhere does not necessarily translate into actual trading at the next regular trading session.
Among exchange-traded funds, Innovator IBD 50 (FFTY) fell 2.9% on Monday. Invesco QQQ Trust’s ETF (QQQ), pegged to Nasdaq 100, was trading 2.6% lower. Meanwhile, the SPDR S&P 500 ETF (SPY) lost 0.8%.
Overview of the US Stock Market
|Index||Symbol||Price||gain loss||% Change|
|S&P 500||(0S and P5)||3876.51||-30.20||-0.77|
Last Updated: 4:28 PM ET 2/22/2021
Stock market rally
Looking back at the current uptrend, November was a key month for the stock market. IBD’s Big Picture marked the new uptrend after the market’s bullish tracking day on November 4. Meanwhile, in mid-February the Dow Jones Industrial Average, Nasdaq and S&P 500 fell from all-time highs.
Friday’s Big Picture commented: “Unable to find direction for most of the day, the stock market closed on Friday on a mixed basis. But it was not a wasted day for the bulls, as small-cap stocks and leading stocks outperformed. widely “.
Focus on stocks that show strong relative strength during the current weakness. They could be some of the market leaders if the indices are able to return to their record-setting form.
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Bitcoin’s price surpassed $ 57,000 on Saturday and $ 58,000 on Sunday before briefly diving back below $ 48,000 on Monday morning. Bitcoin rallied, trading around $ 54,000 in overnight trading, according to CoinDesk.
The Grayscale Bitcoin Trust (GBTC) ETF slid more than 4% on Monday, falling from all-time highs.
Dow Jones Stock: Disney
Dow Jones Disney shares are back in buying range beyond a buy point of 183.50 on a flat basis, according to IBD MarketSmith chart analysis. The 5% purchase area rises to 192.68.
Disney shares advanced 4.5% on Monday.
Actions in or near purchase areas: banks, trading desk
Friday’s IBD day stock, Shoals Technologies, is attempting to break above a buy point of 41.86 on a narrow IPO basis, according to analysis of the IBD MarketSmith chart. The stock briefly passed the buy point before retreating more than 1% lower. The shares closed about 5% below entry.
Shoals is a leader in IBD’s IPOs. The firm provides a variety of equipment needed to operate solar power systems, according to the Shoals IPO filing. In addition, it provides the necessary components to carry electrical currents from solar panels to solar inverters and ultimately to the electrical grid.
Trade Desk is trading about 13% from a buy point of 972.90 on a cup basis amid Monday’s drop of more than 6%.
On Friday, the stock rose nearly 7% on the back of the company’s strong fourth-quarter results. Profits and sales grew 149% and 48%, respectively, compared to the prior year period.
According to IBD Stock Checkup, Trade Desk stocks show a strong 98 out of a perfect composite rating of 99 IBD. The IBD composite rating helps investors easily measure the quality of a stock’s fundamental and technical metrics.
Trade Desk is ranked # 10 on IBD Big Cap 20.
Stock Market Earnings: Cadence, Palo Alto, ZoomInfo
Cadence Design Systems, Palo Alto Networks and IBD Leaderboard stock ZoomInfo all reported gains after Monday’s close.
Cadence fell back to its 50-day line on Monday amid a 4.65% drop. After Monday’s close, Cadence reported strong fourth-quarter results. The company earned 83 adjusted cents per share on sales of $ 760 million in the December quarter. Analysts had forecast Cadence’s earnings of 74 cents a share on sales of $ 732 million.
The shares were up 5% in night trading.
Cybersecurity leader Palo Alto Networks reported better-than-expected fiscal second quarter earnings and sales results, but the company’s range of earnings outlook fell short of consensus. Palo Alto shares cut losses to around 2% in night trading.
The shares closed Monday in the buying range beyond a buy point of 375.10 on a flat basis.
ZoomInfo fell 6.25% on Monday, closing below a 53.18 entry on a cup basis. After Monday’s close, ZoomInfo jumped 10% on strong fourth-quarter results and better-than-expected first-quarter sales guidance.
According to Leaderboard’s comment, “ZoomInfo broke out in a short time on February 1. But it led an alternative entry that leaves stocks in buying range. Stocks are becoming more volatile, a risk.”
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Tesla Out of Stock Support
Shares on IBD’s leaderboard Tesla fell 8.55% on Monday, topping its key 50-day moving average. The stock is below the critical support level for the first time since a November 18 break above a 466 buy point.
On Sunday, Tesla stopped receiving orders for the cheapest version of the Model Y Standard Range sports utility vehicle, just over a month after its launch and just a week after a price cut, according to its website.
IBD’s Stock Of The Day column on January 8 noted that Tesla was showing several signs of a climax amid a sharply vertical run in recent months.
On January 25, Tesla shares hit a record high of 900.40. The stock is roughly 84% above 466 buying points in a mug with a handle amid Monday’s action.
Dow Jones Leaders: Apple, Microsoft
Among the top Dow Jones stocks, Apple fell 3% on Monday as it fell further below its 10-week line.
On Thursday, the stock triggered the 7% -8% loss reduction sell rule when it fell more than 7% below its buy point of 138.89 in a mug with a handle.
Meanwhile, Microsoft was down 2.7% on Monday. The software giant’s shares are in the 5% buy zone from a buy point of 232.96 that rises to 244.61
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on growth stocks and Dow Jones futures.
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