Dow Jones Futures: Spiking Treasury Yields Hit Tech Stocks; Dow Giant Triggers Buy Signal
Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, were blended following Monday’s tech weak point, as Treasury yields increased near current highs. DraftKings, Tesla stock and Zoom Video failed once again Monday, while Dow huge Boeing delved into buy variety.
On Monday, the tech-heavy Nasdaq composite greatly underperformed, falling 0.6%, while the small-cap Russell 2000 toppled 2.8%, discovering resistance at its 50-day line. The S&P 500 moved down 0.1%, while the Dow Jones Industrial Average traded up 0.3% to set a record high. On the other hand, the small-cap Russell 2000 toppled 2.8%, discovering resistance at its 50-day line.
Among the Dow Jones leaders, Apple (AAPL) rallied 0.15% Monday, while Microsoft (MSFT) declined 0.5% in today’s stock market. Boeing (BA) is back in buy range following Monday’s bullish move.
Tesla (TSLA) skidded more than 1% Monday, adding to Friday’s 3.4% tumble.
Among the top stocks to watch, FANG leaders Alphabet (GOOGL) and Facebook (FB) are approaching new buy points.
Microsoft and Tesla are IBD Leaderboard stocks. Boeing was Monday’s IBD Stock Of The Day, while Alphabet and Facebook were featured in this week’s Stocks Near A Buy Zone column.
Dow Jones Futures Today
After the stock market close Monday, Dow Jones futures rose 0.1% vs. fair value, while S&P 500 futures inched higher. Nasdaq 100 futures lost 0.1% vs. fair value. Remember that trading in Dow Jones futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
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Last Update: 4:38 PM ET 3/29/2021
On Monday, the 10-year Treasury yield spiked as high as 1.728% before closing at 1.721%, adding to Friday’s gains. The 10-year Treasury yield is just shy of its recent highs that were reached on March 19 at 1.754%.
Among exchange traded funds, the Innovator IBD 50 (FFTY) traded down 3% Monday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) lost less than 0.1%. Meanwhile, the SPDR S&P 500 ETF (SPY) also moved down less than 0.5%.
Stock Market Rally: Nasdaq Set For Another Test?
Amid the current stock market rally, the Dow Jones Industrial Average set all-time highs Monday, while the S&P 500 index snapped a two-day win streak.
Meanwhile, the tech-heavy Nasdaq remains below its key 50-day moving average. The Nasdaq will need to overcome this key hurdle in order to maintain its upward trajectory. The 50-day line is a critical potential resistance level. If the Nasdaq decisively clears it, then new highs could be on the horizon.
Friday’s Big Picture commented, “The sharp stock market gains gave the look of a follow-through rally confirmation. The S&P 500’s gain in higher volume qualified as a follow-through. Leading stocks performed well — much better than earlier in the week. With new strength in indexes and top stocks, the market uptrend resumed, as far as IBD’s market outlook goes.”
Despite a resumed uptrend, the stock market’s choppiness has made it hard to make progress. Given such difficulty, it’s best to maintain a more conservative stance until the market proves its recent strength isn’t fleeting.
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Bitcoin briefly topped $61,000 in mid-March to hit an all-time high. The price of Bitcoin hit its high-water mark on March 13, topping out at $61,556.
The price of Bitcoin advanced about 7% Monday to trade around $57,400, according to CoinDesk. The Grayscale Bitcoin Trust (GBTC) looked to continue its rebound from the 50-day moving average, jumping 6.5%.
Dow Jones Stocks: Boeing
Inside the Dow Jones Industrial Average, Boeing is back in buy range above a 244.18 buy point in a cup base. The 5% buy range goes up to 256.39.
Shares rallied 2.3% Monday after Southwest Airlines (LUV) added 100 orders to its Boeing 737 Max jet agreement. The first 30 jets are scheduled for delivery in 2022.
Boeing was featured as Monday’s IBD Stock Of The Day.
Speculative Leaders Tumble
Tech leaders sold off sharply Monday, as the stock market rotation out of speculative growth stocks continues.
DraftKings (DKNG) toppled 8.5%, closing below its 50-day line for the first time since a Jan. 14 breakout above a cup-with-handle’s 56.08 buy point. The stock is more than 20% off its 52-week high, set just five sessions ago on March 22.
2020 big winner Zoom Video (ZM) fell nearly 4%, hitting a new recent low. Shares are nearly 50% off their all-time high of 588.84 that they set on Oct. 19.
Stocks Near Buy Zones: Alphabet, Facebook
IBD Leaderboard stock Alphabet continues to form a flat base with a new buy point at 2,145.24, according to IBD MarketSmith chart analysis. Shares are about 5% away from the new entry amid Monday’s 1% gain.
According to Leaderboard commentary, “Alphabet has made better progress than other big-cap techs lately. Support at the 21-day line is now flimsy. Watch for the stock to find support as it tests the 50-day line. The last base was second stage.”
Fellow FANG stock leader Facebook is tracing a cup with handle with a 299.81 buy point. Shares moved up 2.8% Monday and are about 3% away from the new entry.
According to IBD Stock Checkup, FB stock shows a solid 91 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.
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Tesla stock declined 1.2% Monday, adding to Friday’s 3.4% loss.
Shares of Tesla ended Monday about 32% off their 52-week high. Tesla stock could be forming a new base, but it is too early for a new risk-optimal buy point.
On Feb. 22, Tesla 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
Dow Jones Leaders: Apple, Microsoft
Amongst the leading Dow Jones stocks, Apple rose 0.15% Monday, extending a win streak to three sessions. Apple stock is rebounding from its long-term, 40-week line and could soon again try to reclaim its 10-week line.
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, software giant Microsoft moved down 0.5% Monday. Shares are back above their 232.96 buy point and are approaching a 246.23 buy point in a brand-new flat base.
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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Jobber Wiki author Frank Long included to this report.