Stocks clung to narrowing gains Tuesday, as the Dow Jones Industrial Average struggled for a fourth-straight advance and the Nasdaq fought to hold its regained support. ASML Holding, Nvidia, America's Car-Mart and 360 Digitech all advanced near buy points. Meanwhile, a new round of 737 orders sent Boeing to the head of the Dow Jones today.
XThe Nasdaq Composite halved its opening gain to 0.3%. The S&P 500 flattened its advance to less than 0.1%. The Dow industrials wrestled to hold its fractional gain, as Amgen (AMGN) dived 1.3% to the bottom of the index.
China-based names rallied in early action, with Pinduoduo (PDD) and Trip.com (TCOM) leading the Nasdaq 100. The iShares MSCI China ETF (MCHI) gained 2.2% in opening trade.
IBD 50 stock 360 Digital (QFIN) popped 5.6% ahead of its first-quarter report on Thursday. The gain sent the China-based listing past a 28.61 buy point in a double-bottom base.
Chip stocks also outpaced the early action. The iShares PHLX Semiconductor ETF (SOXX) rallied 0.9%. Chip equipment maker ASML Holding (ASML) ran high on the Nasdaq 100, up almost 3%. The IBD 50 and Leaderboard stock is in a buy range as it rebounds from support at its 10-week moving average. Shares are also in the fifth week of a possible flat-base pattern.
IBD Leaderboard listing Nvidia (NVDA) added 0.3%, bucking for a fifth-straight advance after retaking a buy point at 615 on Monday. Susquehanna previewed the chip developer's first-quarter results, due Wednesday, and projected a beat-and-raise quarter.
Biotech vaccine maker Moderna (MRNA) jetted 4.3% higher, after announcing positive results in late-phase trials of its vaccine in teenagers. Moderna shares wre exiting a buy range after a rebound from 10-week support.
America's Car-Mart (CRMT) vaulted 5.8% after reporting fiscal fourth-quarter results late Monday. The stock, the top-ranked name in the auto retail industry group, is below a 165.10 buy point in an 11-week flat base.
Dow Jones Today: Boeing Order, Intel Resistance
Boeing (BA) ran strong on the Dow Jones today, trading up 1.8% after announcing an order for 14 of its 737 Max aircraft from Dublin-based SMBC Aviation Capital. The order pushed Boeing's backlog for the jet to 121 units.
Chip giant Intel (INTC) reversed its early gain and dropped 0.5%, threatening its four-day advance. The stock met resistance at the underside of its 21-day exponential moving average, above which it has not traded since mid-April.
IBD 50 Growth Stocks To Watch Right Now
Intel Chief Executive Pat Gelsinger, speaking at an investor conference on Monday, noted that the first quarter marked a bottom for the company's data-center business, and that the company's client market was "on fire."
Vital Signs: Bitcoin, Oil, Bond Yields
Bitcoin bounced back above the $37,000 level, according to Coindesk, after diving below $32,000 Sunday. Sunday's drop briefly narrowed the cryptocurrency's gain for the year to less than 10%. Bitcoin had run up to a record high above $64,800 on April 14.
Oil prices and copper prices, strong factors in the market's recent volatility, both declined modestly early Monday. West Texas Intermediate oil price futures fell 0.3%, fading back below $66 a barrel after a big jump on Monday. It remains well below the 33-month high at $67.98 posted on March 8.
Stock Market ETF Strategy And How To Invest In The Current Uptrend
Bond yields continued to back off, with the 10-year yield trading at 1.58%, down from its settle at just below 1.61% on Monday, according to CBOE data. Yields had skirted pre-pandemic levels late in March, climbing to almost 1.76%, the highest level since January 2020.
Minding The Nasdaq 100's Big 6
The six biggest names on the Nasdaq 100 make up more than 40% of the index's weighting. Two of the index's heaviest weighted names, Apple (AAPL) and Microsoft (MSFT), are also Dow industrial listings. Microsoft has a 12.8% gain so far this year. Apple is down 4.2%.
While the Nasdaq Composite clawed back above its 50-day moving average on Monday, Apple — which represents almost 11% of the Index — continues its struggle to break resistance at its 50-day line.
Microsoft's big 2.3% gain on Monday was notable, lifting the IBD Leaderboard stock back above support at its converged 50-day and 21-day moving averages. The gain occurred in weak trade, but was still sufficient to send shares into a buy zone above the stock's 50-day/10-week moving average.
As for the other Nasdaq 100 heavyweights, Amazon.com (AMZN) — which accounts for 8.4% of the Nasdaq 100 — ended Monday a fraction below its 50-day level. Amazon has declined for the past three weeks. Year-to-date, it is down 3.7%.
Tesla (TSLA) remains deep below its 50-day line. But on Monday it punched back above its 200-day level on a modest rise in volume. Tesla stock, which represents 3.6% of the Nasdaq 100, is worth watching to see whether this marks a turning point in the 39% deep consolidation.
Alphabet (GOOGL) has a 34.8% gain since Dec. 31. Combined with the stock's non-voting shares under the GOOG ticker, the company represents a full 7.7% of the Nasdaq 100. Also an IBD Leaderboard stock, Alphabet is in two buy zones. The first, on a rebound from support at its 10-week moving average, runs to 2,425,50. The second, on a three-weeks-tight pattern, extends to 2,421.47.
Facebook (FB) is also rebounding from 50-day/10-week support, following an early April breakout. Its buy range runs roughly through 331.
Nasdaq, S&P 500, Dow Jones Today
The Nasdaq played another round of incremental catch-up on Monday, outpacing gains of both S&P 500 and the Dow industrials. For the year, the Nasdaq Composite is now up 5.3%, vs. an 11.7% gain for the S&P 500 and the 12.4% year-to-date advance for the Dow Jones today.
The Dow's three largest advances so far this year have come from Goldman Sachs (GS), up 39.7%; Walgreens Boots Alliance (WBA), a 37.5% gain; and Caterpillar (CAT), up 31.3%.
For more detailed analysis of the current stock market and its status, study the Big Picture.
The Nasdaq 100 is running only slightly ahead of the composite in 2021, with a 5.8% advance vs. the composite's 5.4% gain through Monday.
The market remains in an uptrend, although the status is "Uptrend Under Pressure." That status suggests three courses of action for investors: Be very careful about making any new buys. Make a defensive game plan for each stock you own. Stay disciplined and flexible.
Most investors at this point will have either taken profits or cut losses short and rotated into cash, while maybe holding on to a few big winners. It's a good time to build a watchlist of stocks that have consolidated and built breakout-ready chart patterns, in order to be ready when the market finds its groove.
Find Alan R. Elliott on Twitter @IBD_Aelliott
YOU MAY ALSO LIKE:
Learn How To Time The Market With IBD's ETF Market Strategy
Find The Best Long-Term Investments With IBD Long-Term Leaders
MarketSmith: Research, Charts, Data And Coaching All In One Place
Outdoor Stocks Resilient Amid Market Consolidation, But Can Inventory Keep Pace With Demand?
Business - Latest - Google News
May 25, 2021 at 09:00PM
https://ift.tt/2SqKWjQ
Dow Jones Today Heads For 4 As Stocks Climb; ASML Holding, Intel Pace Chip Rally - Investor's Business Daily
Business - Latest - Google News
https://ift.tt/2Rx7A4Y
Bagikan Berita Ini
0 Response to "Dow Jones Today Heads For 4 As Stocks Climb; ASML Holding, Intel Pace Chip Rally - Investor's Business Daily"
Post a Comment