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Dow Jones Falls While Nasdaq, S&P 500 Recover Some Losses; These Dow Stocks Trade Near Buy Zones

The Dow Jones Industrial Average traded lower in today’s stock market while the Nasdaq lifted higher into the last hour of trading. Tech stocks recovered some of their losses from the prior day. Over the past hour of trading, the Dow Jones hovered near its lows while the S&P 500 and Nasdaq traded off their lows of the day.




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Stock Market Today

Less than an hour before the close, the small-cap Russell 2000 index gained 0.5%. Meanwhile, the Nasdaq composite rose nearly 1.1%. The S&P 500 saw earlier gains nearly shrink to nil while the Dow Jones slumped 1%. Volume was lower on the Nasdaq and the NYSE compared with the close on Wednesday, according to preliminary data.

Investors continued to digest rising U.S. Treasury yields in recent days. The yield on the 10-year Treasury, which is considered one of the safest assets to own, ticked down from 1.513% on Thursday to 1.48% on Friday. The yield is now equivalent with the S&P 500’s dividend yield of 1.48%.

Meanwhile, House lawmakers are expected to pass a $1.9 trillion stimulus bill today. The package includes $1,400 direct checks to most Americans. Current supplemental unemployment benefits are set to expire in mid-March.

Cumulative Covid-19 cases continue to rise but at a much slower pace than before, as nationwide lockdowns approach the one-year mark. There are signs of hope as cases begin to plateau in some states and vaccinations continue to roll out. Worldwide cases are approaching 114 million with more than 2.5 million deaths, according to Worldometer.

In the U.S., cases have risen above 29 million with roughly 521,000 deaths.

The Innovator IBD 50 ETF (FFTY) fell 1.4%, regaining some of its losses from the previous trading session. The growth-focused index slumped on Thursday as growth stocks took a hit in favor of less risky assets.

Shares of the ETF found strong support at the 50-day line. Stocks leading the upside in the growth-focused ETF were Digital Turbine (APPS) and Etsy (ETSY), with gains of over 11% apiece.

Dow Jones Today

The Dow Jones sold off on Friday, as the majority of its stocks traded lower. Salesforce.com (CRM) and Proctor & Gamble (PG) led the downside with respective losses of 5.3% and 2.6%.

Shares of tech giant Salesforce broke below support at its 50-day and 200-day lines, despite reporting Q4 earnings that beat Wall Street targets early Friday. The stock is currently forming a 16-week consolidation with 271.02 buy point. It’s about 19% below the entry, according to MarketSmith chart analysis.

Elsewhere, Microsoft (MSFT) and Apple (AAPL) led on the upside with gains of 1.8% each. Apple is on pace to break a four-day losing streak. Shares of the iPhone maker slipped below the 50-day line last week. It’s now about 15% off its high.

Meanwhile, Microsoft stock traded near a 232.96 buy point of a consolidation as it tests its 10-week moving average.

Finally, Johnson & Johnson (JNJ) gave up more than 2% in heavy trade as shares test the 50-day line. An FDA panel is meeting today to vote on whether to recommend Johnson & Johnson’s coronavirus vaccine. The health care giant’s vaccine would become the third available in the U.S. if the FDA gives it the green light.

Johnson & Johnson shares remain inside a 5% buy zone from a 157.10 buy point of a long flat base. The buy zone tops out at 164.96.

But investors should be aware of the increased risk with new investments at this time, as the market is currently in “Uptrend under pressure” mode.

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