Dow Jones Hits Record High, Tech Stocks Dive As Treasury Yields Spike; Apple, Tesla Stock Sell Off

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The Dow Jones Industrial Average rallied more than 150 points Thursday, while tech stocks sold off as Treasury yields spiked. Apple and Tesla stock tumbled in morning trade, while Dow Jones leader Nike will report earnings after the close.




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Among the Dow Jones leaders, Apple (AAPL) fell more than 2% Thursday, while Microsoft (MSFT) moved down nearly 2% in today’s stock market. Nike (NKE) is approaching a new buy point ahead of today’s earnings results.

Tesla (TSLA) skidded over 3% in morning trade Thursday. Dollar General (DG) and Five Below (FIVE) reported earnings results ahead of the stock market open Thursday.

Among the top stocks to watch, Applied Materials (AMAT) and MKS Instruments (MKSI) are in or near buy zones in the current stock market rally.

Microsoft is an IBD Leaderboard stock. Applied Materials is a recent addition to IBD SwingTrader, while MKS Instruments was Tuesday’s IBD Stock Of The Day.

Dow Jones Today: Treasury Yields

The Dow Jones Industrial Average rallied 0.6%, while the S&P 500 fell 0.3%. The tech-heavy Nasdaq composite tumbled 1.4% in morning trade after cutting losses.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 33125.96 +110.59 +0.33
S&P 500 (0S&P5) 3956.62 -17.50 -0.44
Nasdaq (0NDQC ) 13340.48 -184.72 -1.37
Russell 2000 (IWM) 231.58 -0.73 -0.31
IBD 50 (FFTY) 47.47 -0.16 -0.34
Last Update: 10:42 AM ET 3/18/2021

On Wednesday, the Federal Reserve indicated that it wasn’t likely to raise rates until 2024 despite a strengthening U.S. economy.

New economic projections showed that Fed policymakers will stand pat even as inflation surges well past their 2% target this year and holds at or above 2% in the next two years.

The 10-year Treasury yield spiked as high as 1.754% Thursday morning, hitting a 14-month high.

Among exchange traded funds, the Innovator IBD 50 (FFTY) traded down 0.9% Thursday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) fell 1.85%. Meanwhile, the SPDR S&P 500 ETF (SPY) moved down 0.7%.

Stock Market Rally: Nasdaq Faces Key Test

Amid a new stock market rally, the Dow Jones Industrial Average and S&P 500 indexes made more all-time highs Wednesday.

Meanwhile, the tech-heavy Nasdaq is right at its 50-day moving average line and about 5% off its all-time highs. 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.

IBD’s market outlook was upgraded to “confirmed uptrend” on March 10, as the Dow Jones Industrial Average set new highs.

Wednesday’s Big Picture commented, “The stock market recovered off lows Wednesday after Wall Street got exactly what it wanted from the Federal Reserve: another dovish policy statement.”


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Dow Jones Stocks: Nike Earnings

Inside the Dow Jones Industrial Average, Nike stock is approaching a 148.05 buy point in a flat base, according to IBD MarketSmith chart analysis. Shares are about 2% away from their buy point amid Thursday’s 0.1% gain.

Late Thursday, Nike will report its quarterly earnings results. The company is expected to earn 76 cents per share on revenue of $11 billion.

Stocks To Watch: Applied Materials, MKS Instruments

IBD SwingTrader stock Applied Materials is close to completing a new base, which would offer a 124.60 buy point. Meanwhile, the stock is rebounding from its key 50-day line after testing that level on March 8. Shares fell about 2% Thursday.

According to IBD Stock CheckupAMAT stock boasts a perfect 99 IBD Composite Rating. The IBD Composite Rating helps investors easily measure the quality of a stock’s fundamental and technical metrics.

Tuesday’s IBD Stock Of The Day, MKS Instruments, is in buy range past a 177.46 buy point in a double bottom, according to IBD MarketSmith chart analysis. The 5% buy zone goes up to 186.33.

Shares slipped about 2% Thursday morning, and it is just above the entry.

Stock Market Earnings: Dollar General, Five Below

Early Thursday, Dollar General missed earnings targets and offered weak full-year guidance. Dollar General stock tumbled 5% Thursday and is more than 20% off its 52-week high.

Five Below reported better-than-expected Q4 earnings and first quarter guidance late Wednesday. Shares pared gains to about 1% in morning trade.


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Tesla Stock

Tesla stock skidded more than 3% Thursday morning, threatening to give up a majority of Wednesday’s 3.7% gain. Shares could be forming a new base, but it’s too early to identify a new entry.

On Feb. 22, 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 25% off that all-time high.

Dow Jones Leaders: Apple, Microsoft

Among the top Dow Jones stocks, Apple fell about 2% Thursday, on pace to add to Wednesday’s 0.65% decline. Apple stock is rebounding from its long-term 40-week line and could soon 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, IBD Leaderboard stock Microsoft dropped nearly 2% Thursday, looking to extend Wednesday’s 0.3% loss. Shares are holding just above their 232.96 buy point and are in buy range.

According to Leaderboard commentary, “Microsoft is holding support at its 50-day moving average and is above a 232.96 buy point and an earlier entry at 228.22.”

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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