Dow Jones Reverses Lower, Tech Stocks Sell Off On Weak Jobs Data; Bitcoin Surges Above $52,000| Investor’s Business Daily

The Dow Jones Industrial Average reversed lower Wednesday, while tech stocks sold off for second straight day, as jobs data disappointed. Bitcoin surged above $52,000. Tesla stock looked to rebound from Tuesday’s sell-off, while Bitcoin plays PayPal and Square tumbled in morning trade.


Among the Dow Jones leaders, Apple (AAPL) fell 0.8% Wednesday, while Microsoft (MSFT) moved down 1% in today’s stock market. Visa (V) is in buy range above a new buy point.

Tesla (TSLA) looked to rebound from Tuesday’s 4.5% drop, rising 1.5% in morning trade.

After the stock market close Tuesday, FuboTV (FUBO) and Veeva Systems (VEEV) reported quarterly earnings results.

Among the top stocks to watch, Bitcoin plays PayPal (PYPL) and Square (SQ) continue to rebound from their 10-week line. But both leaders stumbled in Wednesday trade.

Microsoft and Tesla are IBD Leaderboard stocks. PayPal was featured in this week’s Stocks Near A Buy Zone column.

Dow Jones Today: Jobs Data Disappoints

After the stock market open Wednesday, the Dow Jones Industrial Average traded down 0.2%, while the S&P 500 fell 0.8%. The tech-heavy Nasdaq lost 1.6% in morning trade.

Early Wednesday, private payrolls increased 117,000 in February, well below the 165,000 Econoday consensus estimate, according to a report from ADP.

“We’re seeing large-sized companies increasingly feeling the effects of Covid-19, while job growth in the goods producing sector pauses,” Nela Richardson, chief economist at ADP, said in a written statement.

The Labor Department will report February’s official jobs data on Friday.

Among exchange traded funds, the Innovator IBD 50 (FFTY) traded down 1% Wednesday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) fell 0.9%. Meanwhile, the SPDR S&P 500 ETF (SPY) moved down 0.35%.

Stock Market Pullback Finds Support

Looking back at the current uptrend, November was a key month for the stock market. IBD’s The Big Picture flagged the new uptrend following the market’s bullish follow-through day on Nov. 4. Meanwhile, the start of March has the Dow Jones Industrial Average, Nasdaq and S&P 500 pulling back from record highs.

Tuesday’s IBD Big Picture cautioned, “While some backtracking was not surprising after indexes made their best gains in months, the market left more to be desired. Indexes slid in the final hour of trading and closed near session lows. That’s uncomfortable action, especially when you study the index charts.”

Amid the stock market pullback, investors should play more defense than offense. Avoid new breakouts, unless they’re exceptional, and make sure to sell any stock that falls more than 7% below your purchase price. Remember, you don’t have to wait for the 7%-8% loss if the stock is clearly not acting well.

Focus on stocks that show strong relative strength during the current weakness. They could be some of the market’s leaders if the indexes are able to continue their rebounds.

Stock Market ETF Strategy And How To Invest

Bitcoin Price

Bitcoin surged 10% Wednesday morning, moving back above $52,000. The price of Bitcoin traded around $52,100 in morning trade, according to CoinDesk.

The Grayscale Bitcoin Trust (GBTC) ETF dropped nearly 4% on Tuesday, giving back a large portion of Monday’s 6.1% jump. The ETF jumped 4% Wednesday. The Bitcoin-tracking ETF remains above its key 50-day line.

Bitcoin Stocks: PayPal, Square

IBD Leaderboard stock PayPal is rebounding from its 10-week support level, placing the Bitcoin play in a new buy area.

Shares of PayPal slipped 1.6% Tuesday, ending a two-day win streak. According to IBD Leaderboard commentary, “PayPal has reached its profit targets, but the stock is now in a new buy area. The stock is rebounding from its 10-week line, which offers a follow-on buy area.”

PayPal stock declined 2.3% Wednesday.

The price of Bitcoin, which PayPal is using, hit an all-time high on Feb. 21, topping out at $58,332.

Square extended a win streak to three sessions Tuesday amid a 4.65% advance after the company said that its industrial bank has started operations. The bank, called Square Financial Services, will underwrite and originate loans taken out by Square sellers through the company’s Square Capital program.

Square stock fell nearly 3% Wednesday. Shares recaptured their 50-day line on Monday and added to those gains on Tuesday.

Rebounds from the 10-week line are best used as add-on opportunities. Be sure to purchase fewer shares when adding to an existing position to avoid drastically raising your average cost.

Dow Jones Stocks: Visa

Inside the Dow Jones Industrial Average, Visa stock is in buy range past a 211.69 buy point in a cup with handle, according to IBD MarketSmith chart analysis.

Shares rose 0.2% Wednesday, and are squarely in buy range. The 5% buy zone goes up to 222.27.

Stock Market Earnings: Fubo, Veeva

FuboTV, a sports-first live TV streaming service, added more-than-expected subscribers for the fourth quarter, but posted a much larger-than-expected loss. FUBO stock dived 13% Wednesday.

Shares closed Tuesday more than 30% off their 52-week high, having just regained their 50-day line.

Veeva Systems crushed fourth-quarter estimates Tuesday and delivered Street-topping guidance for the full year. The medical-software company earned 78 cents per share on $396.8 million in sales. The stock slid more than 3% Wednesday.

Shares recently triggered the 7%-8% loss-cutting sell signal from a 314.09 buy point in a cup base.

IBD Live: A New Tool For Daily Stock Market Analysis

Tesla Stock

Tesla stock skidded nearly 4.5% Tuesday, surrendering a large amount of Monday’s 6.4% gain. Shares could be forming a new base, but it’s too early to identify a new entry. Early Wednesday, Tesla rose 1.5% after the market open.

Last week, the electric-auto 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 24% off that all-time high.

Dow Jones Leaders: Apple, Microsoft

Among the top Dow Jones stocks, Apple shares fell 0.8% Wednesday morning following Tuesday’s 2.1% fall. 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, IBD Leaderboard stock Microsoft fell 1% Wednesday, as it continues to hold above its recent 232.96 buy point. The software giant is still in buy range.

According to Leaderboard commentary, “Microsoft is back above the buy point as it climbs from the 50-day moving average. The stock is above an earlier entry of 228.22 in a mild rebound.”

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.


Top Growth Stocks To Buy And Watch

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

How To Research Growth Stocks: Why This IBD Tool Simplifies The Search For Top Stocks

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *