The Dow Jones Industrial Average was seeing its gains fade, while the Nasdaq was forced lower. Apple (AAPL) dipped lower as CEO Tim Cook took to the stand to defend the firm against claims from “Fortnite” creator Epic Games that it is running a monopoly. Meanwhile Bitcoin was diving after coming under attack from China government officials.
The White House made an infrastructure counteroffer to Senate Republicans on Friday, trimming their original proposal down from $2.3 trillion to $1.7 trillion.
The $600 billion in cost reductions came from shifting parts of the American Jobs Plan over to other legislation currently under consideration.
Other cost savings would come from cutting President Joe Biden’s initial funding levels for rural broadband and for roads and bridges.
Nasdaq Reverses, S&P 500 Flat
The S&P 500 was also struggling, but was trading flat after a spell in the red. Apparel stock VF (VFC) fared worst with a loss of more than 7%. However, auto stock Ford (F) posted a noteworthy gain of almost 7%.
U.S. Stock Market Today Overview
Last Update: 2:48 PM ET 5/21/2021
The S&P sectors were finely poised, with slightly more winners than losers gains. Technology and consumer discretionary were the biggest laggards; financials were making the biggest gains.
Small caps were shining, with the Russell 2000 turning in a gain of around 0.5%. The Innovator IBD 50 ETF (FFTY) was flat.
Dow Jones Gains Fade As Boeing Stock Takes Off
The Dow Jones Industrial Average was the top-performing major index of the day thanks to a gain of 0.4%.
And it was aerospace giant Boeing that was making the biggest gains, rising over 3%.
The stock remains shy of its 50-day moving average, MarketSmith analysis shows. Its RS line has also been declining of late.
Apple Stock Falls Amid Tim Cook Testimony
Apple stock was dropping even as CEO Tim Cook took to the witness stand to defend the company. It was the worst-performing Dow Jones stock, falling over 1%. It is sitting just below its 50-day line.
Cook hit back at claims by “Fortnite” creator Epic Games that the iPhone giant is running a monopoly. He insisted the Dow Jones stock had consumers’ best interest at heart
“For us, the customer is everything,” he said.
The executive claimed it is important that the firm carefully oversees the firm’s App Store. The company reviews about 100,000 apps a week, rejecting less than half. He asserted that the App Store could become a “toxic kind of mess” without Apple’s oversight.
“It would be terrible for the user, but it also would be terrible for the developer because the developer depends on the store being a safe and trusted place where customers want to come and feel good about transacting,” he said.
The case is being watched closely, as it could have big implications going forward. Lawmakers and regulators are increasingly skeptical about the power wielded by Big Tech.
Bitcoin Dives Again Amid China Move
The price of Bitcoin was slapped lower yet again after senior Chinese officials released a negative statement on the cryptocurrency Friday.
Chinese Vice Premier Liu He and the State Council said tighter regulation is required to protect the financial system.
The statement said it is necessary to “crack down on Bitcoin mining and trading behavior” to prevent risk from spreading.
The cryptocurrency crashed to around $30,000 Wednesday, after Chinese regulators said financial institutions should not accept cryptocurrencies as payment.
Bitcoin has come under fire of late, with Tesla (TSLA) CEO Elon Musk leading the charge.
It was pressured further after it emerged Thursday that the Treasury Department is going to crack down on cryptocurrency markets and transactions. It is making the move as part of Biden’s proposed tax compliance measures.
Bitcoin sold off sharply according to Coindesk and is now trading around the $37,000 mark.
Grayscale Bitcoin Trust (GBTC) was spanked lower, dipping 7%. It is looking for support at the 200-day moving average. GBTC is down around 22% for the week, a massive loss.
These Stocks Pass Buy Points
Roblox is clear of a buy zone after passing a consolidation buy point of 83.51. The IPO stock had been consolidating after failing to move decisively clear of its IPO base.
The computer game stock was up more than 10% in very heavy volume.
Health stock Iqvia passed a buy point of 237.57, clearing a four-weeks-tight pattern. The stock has been seeing heavy buying from institutional investors of late, with its Accumulation/Distribution Rating coming in at A.
The bullish moves saw the stocks move onto the prestigious Leaderboard list of top growth stocks.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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