The Dow Jones Industrial Average rose more than 200 points on Friday as Treasury bond yields rose. Shares of electric vehicle giant Tesla slipped, while Dow Jones giant Boeing is at a new point of purchase.
Among the leaders of Dow Jones, Apple (AAPL) fell 0.1% on Friday, while Microsoft (MSFT) was up 0.5% on the current stock market. Boeing (BA) is back in buying range after a recent breakout.
Tesla (TSLA) slipped 2% in morning trading following Thursday’s bullish reversal.
Among the main actions to take into account, chip leaders Applied Materials (AMAT), ASML (ASML), MKS Instruments (MKSI) and Qorvo (QRVO) are showing leadership potential in the recent stock market weakness.
Meanwhile, Alphabet (GOOGL) is below one point of purchase while building a new base. Alphabet was featured in this week’s Stocks Near A Buy Zone column.
Alphabet and Microsoft are IBD rating stocks. MKS Instruments was a recent IBD stock of the day.
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Dow Jones Today: Treasury Yields
The Dow Jones industrial average was up 0.75%, while the S&P 500 was up 0.8%. The Nasdaq high-tech composite rose 0.45% after a brief pullback to the downside.
The 10-year Treasury yield briefly fell below 1.6% on Thursday before rebounding. On Friday morning, the 10-year Treasury yield rose to 1.651%.
Among exchange-traded funds, the Innovator IBD 50 (FFTY) rallied 2.1% on Friday. The ETF (QQQ) of the Nasdaq 100 tracker Invesco QQQ Trust was up 0.4%. Meanwhile, the SPDR S&P 500 ETF (SPY) was up 0.5%.
Stock market rally
Amid the current rally in the stock market, the Dow Jones Industrial Average and S&P 500 Index appeared to be adding to Thursday’s bullish reversals.
Meanwhile, the high-tech Nasdaq continues to see resistance around its key 50-day moving average line. The Nasdaq will need to overcome this key hurdle to maintain its upward trajectory. The 50-day line is a critical potential resistance level. If the Nasdaq moves decisively above resistance, then new highs could appear on the horizon.
IBD’s market outlook was updated to “confirmed uptrend” on March 10, as the Dow Jones Industrial Average set new highs. But now the major stock indices are struggling again.
Thursday’s Big Picture commented: “The stock market retreated higher on Thursday after recovering from morning losses. The Dow Jones Industrial Average led major stock indices higher, triggering a bullish reversal.” For daily commentary on the stock market, check out IBD’s The Big Picture.
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Bitcoin briefly surpassed $ 61,000 in mid-March to hit an all-time high. Bitcoin price touched its all-time high on March 13, topping $ 61,556.
Bitcoin’s price rallied around 1% on Friday to trade around $ 52,800, according to CoinDesk. The Grayscale Bitcoin Trust (GBTC) was up nearly 2% in morning trading after Thursday’s bullish reversal.
Dow Jones Stock: Boeing
Within the Dow Jones Industrial Average, Boeing is just above a buy point of 244.18 on a cup basis, according to graphical analysis by IBD MarketSmith. The 5% buy zone rises to 256.39.
The shares fell 0.4% on Friday, threatening to return a portion of Thursday’s 3.3% advance.
Chip Stocks to Consider: Applied Materials, ASML, Qorvo
Chip stocks continue to be some of the hottest tech names amid the recent stock market weakness.
Applied Materials hit a new high on Wednesday before falling 1.1% on Thursday. The chip leader is an IBD SwingTrader stock. The shares were up 2% on Friday.
ASML continues to build the right side of a potential foundation. The minimum shelf life for a cup base is six weeks, so a new point of purchase could emerge at the end of the week. Shares of ASML rose 2.4% on Friday.
Qorvo gave up its 50-day line amid Wednesday’s selloff. The shares are approaching a purchase point of 191.93, while there is an anticipated entry at 185.96. Qorvo shares rose 0.8% on Friday.
Recent IBD Shares of the Day MKS Instruments briefly triggered the 7% -8% loss reduction sell rule from a buy point of 177.46 on a double bottom on Thursday. The shares were up 2.6% on Friday.
According to the IBD Stock Checkup, MKSI shares have a perfect composite rating of 99 IBD. The IBD composite rating helps investors easily gauge the quality of a stock’s technical and fundamental metrics.
Actions near buying zones: Alphabet
IBD Leaderboard Alphabet shares are approaching 2,145.24 buying points on a flat basis, according to IBD MarketSmith’s chart analysis. The shares are about 6% below the new entry. GOOGL shares were down 0.1% on Friday.
Per Leaderboard’s comment, “Alphabet has progressed better than other large-cap technologies lately. Support at the 21-day line is defining current chart action. Last base was second stage.”
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Shares of Tesla fell 2% on Friday morning following a 1.6% gain on Thursday.
Tesla shares ended Tuesday 28% off its 52-week high. Tesla shares could be forming a new base, but it is too early for a new optimal buy point for risk.
On February 22, Tesla broke its key 10-week moving average line, a critical support level. On January 25, Tesla shares hit a record high of 900.40, after rising as much as 93% from a buy point of 466 on a handle mug.
Dow Jones Leaders: Apple, Microsoft
Among the top Dow Jones stocks, Apple fell 0.1% on Friday as it appears to add to Thursday’s 0.4% gain. Shares of Apple continue to stay above their long-term 40-week line and could soon make another run for their 10-week line.
On February 18, Apple stock triggered the 7% to 8% loss reduction sell rule when they fell more than 7% below their buy point of 138.89 in a mug with a handle.
Meanwhile, software giant Microsoft rose 0.5% on Friday and remains at its 50-day key line. The shares have returned to their buy point of 232.96 and are approaching a buy point of 246.23 on a new flat basis.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on growth stocks and the Dow Jones Industrial Average.
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