Technology stocks took another beating early Tuesday, but the Nasdaq composite was sharply off lows in afternoon trading, paring a 3.9% intraday loss to about 1.5%. The Dow Jones Industrial Average held up well for the second straight session, helped by another strong showing from Walt Disney (DIS). Disney stock hit a new high in the Dow Jones today, after jumping 4% Monday.
Bitcoin was down more than 10% to around $47,500. Riot Blockchain (RIOT) slumped 25% and MicroStrategy (MSTR) gave back 20%. Near the end of last year, MicroStrategy held nearly 70,500 bitcoins. Last week, the company completed a $1.05 billion debt offering in a move that will allow it to buy another $1 billion in bitcoin.
The Nasdaq 100 gapped below its 50-day moving average and was down 1.3%, hurt by weak performances from Baidu (BIDU), Moderna (MRNA), PayPal (PYPL), Zoom Video (ZM) and Tesla (TSLA). Despite Tuesday’s loss, Baidu is still holding bullishly above its 21-day exponential moving average.
U.S. Stock Market Today Overview
Last Update: 2:42 PM ET 2/23/2021
PayPal stock and Tesla stock are Leaderboard stocks. PayPal first joined Leaderboard in May, when it broke out powerfully from a cup base. Tesla, meanwhile, flashed a sell signal Monday for those who bought at the 466 buy point in November. The sell signal was a decisive break of the 50-day line.
Dow Jones Today
The Nasdaq composite gapped down and is testing support at its 50-day line. Selling was less intense in the S&P 500 and Dow Jones. The S&P 500 was down 0.5% and the Dow Jones industrials eased 0.2%. Volume on the NYSE and Nasdaq was sharply higher compared to the same time Monday.
The Nasdaq slumped 2.5% Monday. The session had the feel of distribution, or institutional selling, but the index avoided a distribution day because volume was lower than Friday. In terms of average daily dollar volume, though, volume was higher. A distribution day was added to the S&P 500 count because volume on the NYSE was higher than Monday, according to The Big Picture column.
Palo Alto Networks paid a visit to its 50-day line but rallied off lows after the company reported its second straight quarter of accelerating sales growth.
Square reports earnings after the close today. Teladoc reports late Wednesday.
Follow Ken Shreve on Twitter @IBD_KShreve for more stock market analysis and insight.
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