Dow Jones Peers 400 point loss as Powell testifies; Shares of Apple and Tesla are sold, but Disney recovers

The Dow Jones Industrial Average plunged nearly 400 points early Tuesday before trimming its loss, as Fed Chief Jerome Powell testified before Congress.

Early Tuesday, Powell reiterated that the Fed is “committed to using our full range of tools to support the economy and help ensure that the recovery from this difficult period is as robust as possible,” in a speech to the Senate. Committee.

He commented that inflation and employment remain well below the Fed’s targets, suggesting that a loose monetary policy is likely to be maintained.

Tech stocks propelled the Nasdaq to a 43.6% gain in 2020 for its fifth-best year in history. The S&P 500 was up 16.3% and the Dow 7.2% last year. Read The Big Picture for a detailed daily analysis of the market.

Overview of the US Stock Market

Index Symbol Price gain loss % Change
Dow Jones (0DJIA) 31402.65 -119.04 -0.38
S&P 500 (0S and P5) 3,849.00 -27.50 -0.71
Nasdaq (0NDQC) 13257.37 -275.68 -2.04
Russell 2000 (IWM) 218.82 -4.91 -2.19
IBD 50 (FFTY) 45.44 -2.04 -4.30
Last Updated: 1:16 PM ET 2/23/2021

The Covid-19 pandemic continues to shake the US economy, as nationwide lockdowns approach the one-year mark. But there are signs of hope as vaccines are rolled out and cases begin to stabilize in some states.

Cumulative Covid-19 cases worldwide have surpassed 112 million with nearly 2.5 million deaths, according to Worldometer. In the US, cases are now approaching 29 million with more than 513,000 deaths, although the number of new cases in the US has dropped dramatically in recent weeks.

Dow Jones winners and losers

House deposit (HD) slumped 4% in heavy trading to below its 50-day moving average. The big-box home improvement retailer reported better-than-expected fourth-quarter earnings and sales ahead of the opening.

Home Depot’s earnings increased 16% to $ 2.65 per share, including 9 cents in one-time costs related to the HD Supply acquisition. Revenue increased 25% to $ 32.26 billion. Same-store sales were up 24.5%, while sales in the US were up 25%.

Apple (AAPL) declined and fell almost 3% in heavy volume. It was trading below its 50-day line for the past week. On February 18, Apple shares triggered the 7% to 8% loss reduction sell rule when they fell more than 7% below the 138.89 buy point for a mug with a handle.

Other big blue chip losers included Boeing (LICENSED IN LETTERS), Intel (INTC), Microsoft (MSFT), Nike (NKE), (CRM) and Walgreens Boots Alliance (WBA), were down more than 1.5% each.

Microsoft has now dropped below a buy point of 232.96 and is getting closer to testing its 50-day moving average line.

Disney (DIS) rallied 2.6% to a new high at almost three times normal trade. It now extends from a buy point of 183.50 from a flat base, according to MarketSmith’s chart analysis. The buying zone for Disney shares peaked at 192.68. The media and theme park giant was featured on IBD’s Stock Of The Day on Monday.

Outside the Dow

Software, automakers and solar stocks led the decline among IBD’s 197 industry groups. Banks, utility companies and hotel stocks were among the few to win.

In the group of car manufacturers, Tesla (TSLA) tumbled 13% before cutting its loss to 5%. The stock broke its 50-day line on Monday, for the first time in more than three months. He’s on track to extend his losing streak to four. On Sunday, the electric vehicle maker stopped taking orders for the cheaper version of the Model Y Standard Range sports utility vehicle.

Tesla shares remain well extended from a purchase point of 466 for a handle mug. It is now approximately 25% below its January 25 high of 900.40. Tesla is a stock of IBD Leaderboad.

Among other electric vehicle stocks, China Child (NIO) and Xpeng (XPEV) lost 8% and 5% respectively. Nio trimmed his loss from a 17% drop early Tuesday. On Monday, the stock fell 8% to close below the 50-day line for the first time in more than 10 months.

The Innovator IBD 50 ETF (FFTY) tumbled as much as 8% before finding support at its 50-day line. By noon, the shares had cut their losses to 4%. 360 DigiTech (QFIN) sank 12%, while Tyrant Saurus Rex (TYRANUS SAURIO REX), Cerence (CRNC) and Meridian Bioscience (LIVE) lost more than 5% each.

Follow Nancy Gondo on Twitter at @IBD_NGondo


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