The Dow Jones Industrial Average rallied more than 300 points Wednesday, while tech stocks briefly turned as bond yields remained tame following inflation data. Tesla stock briefly reversed lower after surging another 6% in morning trade.
XAmong the Dow Jones leaders, Apple (AAPL) reversed 0.7% lower Wednesday, while Microsoft (MSFT) moved up about 1% in today's stock market. Visa (V) remains in buy range above a new buy point.
Tesla (TSLA) surged more than 6% Wednesday morning before cutting gains, looking to add to Tuesday's nearly-20% surge.
Among the top stocks to watch, CF Industries (CF), Polaris (PII) and Westlake Chemical (WLK) are holding up well in the current stock market correction.
CF Industries, Microsoft and Tesla are IBD Leaderboard stocks. Polaris was featured in this week's Stocks Near A Buy Zone column. Westlake was Monday's IBD Stock Of The Day.
Dow Jones Today: Yields, Biden Stimulus
Early Wednesday, the Dow Jones Industrial Average rallied 1.3%, while the S&P 500 moved up 0.8%. The tech-heavy Nasdaq composite moved up 0.6% after briefly turning lower.
U.S. Stock Market Today Overview |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 32139.15 | +306.41 | +0.96 |
| S&P 500 | (0S&P5) | 3893.76 | +18.32 | +0.47 |
| Nasdaq | (0NDQC ) | 13100.41 | +26.59 | +0.20 |
| Russell 2000 | (IWM) | 227.02 | +3.68 | +1.65 |
| IBD 50 | (FFTY) | 44.89 | +0.36 | +0.81 |
Last Update: 10:54 AM ET 3/10/2021 |
||||
Ahead of the open, the Labor Department said consumer prices rose 0.4% in February, in line with consensus estimates, showing mild inflation. The 10-year Treasury yield held steady at around 1.547% Wednesday morning, after easing from Monday's highs. Yields could see some effect from Wednesday's 10-year Treasury auction at 1 pm ET.
Meanwhile, the House is set to give final approval to the $1.9 trillion Biden stimulus bill, voting on the Senate version of the legislation. The Senate passed the stimulus bill on Saturday. After the House vote, the stimulus bill will go to President Joe Biden for signing.
Among exchange traded funds, the Innovator IBD 50 (FFTY) traded up 2.1% Wednesday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) rose 0.9%. Meanwhile, the SPDR S&P 500 ETF (SPY) moved up 0.9%.
Stock Market Correction
On March 4, the major stock indexes were rocked with heavy selling, while top growth stocks also crumbled. The Nasdaq dived to close at its lowest level since Jan. 4, turning negative for the year. The tech-heavy composite ended Monday down 2.2% in 2021 after rallying as much as 10% from Jan. 1 to its Feb. 16 record high.
IBD's market outlook was downgraded to "market in correction" on March 4. During such periods of severe stock market weakness, investors should be lightly invested — or even in 100% cash — until a follow-through day. Follow-throughs signal a new potential market uptrend and give the green light to start buying stocks again. Currently, it is day four of a new rally attempt following Friday's rebound.
Use the downtime as a chance to take a mental break; however, don't tune out. Be on watch for the next leaders to emerge. One of the best ways to identify the next cycle of leading stocks during stock market corrections is to use the relative strength line. The RS line measures a stock's price performance vs. the S&P 500. If the stock is outperforming the broader market, the RS line angles upward. If a stock is performing worse than the broad market, then the line will point lower.
Tuesday's Big Picture commented, "However, 2021 is no different from any other year in which the markets pounded by sellers for weeks, even months, then make one giant leap higher. Such action in no way means the correction is over. Put another way, it takes more than one big up day to change a market trend."
Check out the IBD's The Big Picture for more stock market commentary.
Stock Market ETF Strategy And How To Invest
Bitcoin Price
Bitcoin rallied about 3% Wednesday, topping $56,000. The price of Bitcoin traded around $56,300 in morning action, according to CoinDesk.
The price of Bitcoin hit an all-time high on Feb. 21, topping out at $58,332.
The Grayscale Bitcoin Trust (GBTC) ETF looked to extend a win streak to three sessions Wednesday, as the Bitcoin-tracking ETF continues to rally from its 50-day support level. GBTC advanced 4.4% Wednesday morning.
Dow Jones Stocks: Visa
Inside the Dow Jones Industrial Average, Visa stock is climbed past a buy range above a 211.69 buy point in a cup with handle following a Feb. 23 breakout, according to IBD MarketSmith chart analysis. The 5% buy zone goes up to 222.27.
Shares gained 0.1% Wednesday, on pace to extend a win streak to four sessions.
Stocks To Watch: CF, Polaris, Westlake
CF Industries is trading just below a 48.98 buy point in a rare ascending base after Monday's breakout move. The 5% buy zone goes up to 51.43.
Shares looked to rebound from Tuesday's nearly 3% tumble, gaining 0.3% in morning trade Wednesday.
Polaris broke out past a 129.10 buy point in a flat base Friday with a 5.7% surge, according to IBD MarketSmith chart analysis. Shares are in the 5% buy zone that tops out at 135.56. Polaris stock moved up 0.7% Wednesday.
According to IBD Stock Checkup, Polaris stock shows a solid 92 out of a perfect 99 IBD Composite Rating. The IBD Composite Rating helps investors easily measure the quality of a stock's fundamental and technical metrics.
Monday's IBD Stock Of The Day, Westlake Chemical, cleared a 90.46 buy point amid Tuesday's 1% advance. Shares ended in the 5% buy zone that tops out at 94.98. The stock moved up 0.6% in morning trade, and is still in buy range.
Westlake was added to IBD Leaderboard Monday. Per Leaderboard commentary, "The stock's latest base is second stage, and the relative strength line is making new highs as shares break out. Both are positive elements for the chart."
IBD Live: A New Tool For Daily Stock Market Analysis
Tesla Stock
Tesla stock looked to add to Tuesday's nearly 20% surge, rallying just 0.4% Wednesday morning after giving up sharp gains. Shares could be forming a new base, but it's too early to identify a new entry.
On Feb. 22, the EV leader broke down through its key 10-week moving average line, a critical support level.
On Jan. 25, Tesla stock hit a record high at 900.40, after climbing as much as 93% from a 466 buy point in a cup with handle. Shares are about 22% off that all-time high.
Dow Jones Leaders: Apple, Microsoft
Among the top Dow Jones stocks, Apple traded down 0.7% following Tuesday's 4.1% advance. Apple stock remains below its 10-week line, but a strong rebound back above the level would be bullish for the stock's prospects.
On Feb. 18, Apple stock triggered the 7%-8% loss-cutting sell rule when it fell more than 7% below its 138.89 buy point in a cup with handle.
Meanwhile, Microsoft rose about 1% Wednesday, looking to add to Tuesday's 2.8% gain. The stock is back above its 232.96 buy point and 50-day line.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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