The Dow Jones Industrial Average traded lower in today’s stock market but still rallied off earlier session lows. In late-afternoon trading, the major indexes all came off their intraday lows as the Nasdaq traded higher.
At about 1:30 p.m. ET, the Russell 2000 gained 1%. Meanwhile, the Nasdaq composite gained 0.9%. The S&P 500 saw its earlier losses reverse to a gain of 0.2%, while the Dow Jones industrials was down 0.4% after declining as much as 1%. Volume was trading higher on the Nasdaq and on the NYSE compared with the same time on Thursday.
Stock Market Today
Recent divergences in the major indexes occurred after rising long-term interest rates made riskier assets less attractive. Strong growth boosted earnings prospects among cyclical sectors, including oil, machinery, industrials, commodities and financials.
But on Friday, the trend appeared to be reversing as tech stocks led the market higher and the Dow traded lower. On Friday, banks, steel and hotel stocks led the downside among IBD’s 197 industry groups. But airfreight transporters, discount retail and biotech stocks held decent gains.
The 10-year Treasury yield spiked as high as 1.75% Thursday, breaking through to a new Covid-era high. The yield briefly fell below 1.68% early Friday but was back at 1.728% midday Friday.
As for growth stocks, the Innovator IBD 50 ETF (FFTY) held a decent gain of roughly 1.5%. The growth-focused index last week regained support at the 50-day line after briefly slipping below it. Stocks leading the upside were Digital Turbine (APPS) and Cowen (COWN), with gains of over 5% apiece.
Digital Turbine gained support at the 10-week line as shares remain less than 10% above this area of support. A bounce off the 10-week line can offer investors an alternate buy point to add shares to their portfolio.
Dow Jones Today
As for the Dow Jones, Intel (INTC), Salesforce.com (CRM) and Home Depot (HD) led the upside with gains of over 1% each. On the downside, shares of Visa (V) and Nike (NKE) held losses of 4% or more each.
Intel stock gained nearly 2% on Friday as shares approached the 5% buy zone of a double-bottom base with a 65.21 buy point. Shares of Intel already broke out into the buy zone earlier this week but slipped back below the key buy point. The stock remains less than 1% away from the buy area.
Intel’s relative strength line, which has been climbing higher in recent months, still remains well off its highs. Additionally, the RS Rating remains well below the minimum of 80 we like to see for growth stocks breaking out.
Elsewhere, Home Depot stock approached a 293.05 buy point in a long consolidation. Shares remain 2% away from the buy zone. This week, the stock reclaimed its 50-day and 200-day lines, according to MarketSmith chart analysis.
Walgreens Boots Alliance (WBA) was up nearly 1% on Friday. Earlier this week, shares briefly broke out past a 55.59 buy point of a cup with handle before reversing lower. Walgreens stock is now about 4% below the entry.
The company is expected to report its fiscal 2021 second quarter earnings results on March 31 before the market opens.
Meanwhile, Microsoft (MSFT) gained 0.5% but shares have slipped below the buy zone of a 232.96 buy point. Shares of Microsoft stock are currently testing support at the 10-week moving average, according to MarketSmith chart analysis. Microsoft is an IBD Leaderboard and IBD Long-Term Leader stock.
Finally, Nike stock declined more than 4% in heavy volume as shares traded below its 50-day line. Late Thursday, the company reported mixed fiscal Q3 results as earnings beat the FactSet consensus forecast but sales missed views. The athletic shoe and apparel giant is still working on a flat base with a 148.05 buy point. It’s about 8% away from the entry.
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