The stock market plummeted Thursday morning with the Dow still holding, but the Nasdaq was sold off. The stock market is swinging higher, with the Nasdaq and growth stocks coming under severe pressure in recent weeks amid rising bond yields. Fed Chairman Jerome Powell will speak today, as investors look for any possible comments regarding Treasury yields.
The Dow Jones Industrial Average fell 0.1% in morning trade. But the S&P 500 sank 0.55%, undermining the 50-day streak. The Nasdaq Composite sank 1.4%.
Daw component Boeing (Bachelor of) Is near a buy point after the breach flirtation on Wednesday. Brazilian miner Valley (File), The global steel giant ArcelorMittal (MT) And a manufacturer of specialty chemicals Element Solutions (ESI) Are also near the entries.
Boeing shares rose 1% early Thursday. But this is a difficult market for any purchases.
UK launched an antitrust investigation vs. Apple, city, cat (AAPL) Regarding alleged anti-competitive practices on its app store. Apple is already facing investigations on the App Store by antitrust officials in the United States and the European Union.
Apple’s stock fell 1%. The shares lost 2.45% on Wednesday. AAPL stock fell below the 50-day line after the breakout failed in late January.
Walt Disney (DisIt will close at least 20% of Disney store websites by the end of the year, including at least 60 in the United States and will focus more on e-commerce. It’s just the latest example of Disney moving its business online. Disney’s stock is down 2%, and is close to the top of its buying range from a steady base.
Kings (DKNGHe reflected lower after initially rallying a deal with the UFC to become an exclusive athlete and fictional daily partner in the United States and Canada.
Square (Sk) Buys a majority on Jay-Z’s Tidal music platform for $ 297 million. Jay-Z will join Square’s board of directors. The square stock fell 7%.
Burlington stores (BURL), And a gap rose from the flat base. The non-price retailer reported a 3% increase in revenue after three consecutive quarters of declining sales.
Chip maker and software maker From Broadcom (AVGO) Reports late tonight. AVGO stock fell to a 10-week streak on Wednesday, but held above that level after the open. Broadcom is an Apple iPhone supplier, but that’s only part of the business.
Disney stocks are running SwingTrader.
The 10-year Treasury yield fell 0.1% to 1.46% after rising on Wednesday, ending a three-day decline. The 10-year Treasury yield rose briefly to 1.6% last week.
Initial jobless claims rose to 745,000 last week from 730,000. Economists expected to see new filings increase to 760,000.
Fed Chairman Powell “Twist” plot?
Fed Chairman Jerome Powell will speak at a conference just after midday ET. His last public comments will be ahead of the March 16-17 Fed meeting. The 10-year Treasury yield has risen over the past several weeks on speculation that Biden’s massive stimulus bill, coupled with the fading out of the coronavirus pandemic in the coming months, will spur a massive economic recovery that could spur a spike in inflation. The prices of crude oil, copper and several commodities have risen recently. While this is good news for mining, finances and many other companies calling it the “real economy” and stocks, it has been a catalyst for heavy selling in emerging stocks.
Powell and other policymakers have indicated that they want faster inflation and are probably not too concerned about the 10-year Treasury yields of less than 2%. But the pace of rising yields caught the attention of Fed Gov. Lyle Brainard, she admitted Tuesday.
Powell stressed that he is focusing on full employment, and not worried about financial markets, although that was in the context of the stock market rising to new highs. But investors may want to hear him say that he is at least paying attention to Treasury yields.
Could Powell hint at a change in policy? There is speculation that the Fed may try to cut long-term yields, by buying long-term Treasuries and short-term Treasuries. The Federal Reserve used this “process of twist” before, in 1961 and again in 2011.
But even if Powell is prepared for such a move, he may not want to raise his hand before the Fed meeting in mid-March.
Stock market rally on the edge of a precipice
The stock market rally may be in its final stages. The confirmed uptrend has been an “uptrend under pressure” for several days.
The Dow Jones Industrial Average fell 0.4% on Wednesday Stock market trading. The S&P 500 fell 1.3% to close above the 50-day line. The Nasdaq Composite Index fell 2.7%, dropping below the 50-day line and closing below the February 23 low. All major indices closed near session lows.
If the S&P 500 Index dips across the 50-day line and the Nasdaq loses more ground, the post-election stock market rally may be over.
Investors need to focus on the sectors that operate and reduce exposure to speculative growth names.
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