The Dow Jones Industrial Average rallied over 200 points Wednesday, as Treasury yields edged above early lows. EV giant Tesla stock reversed lower amid Bitcoin news, while GME stock dived on earnings.
GameStop (GME) dived more than 18% after the company’s earnings results late Tuesday.
Among the top stocks to watch, chip leaders Applied Materials (AMAT), ASML (ASML), MKS Instruments (MKSI), Nvidia (NVDA) and Qorvo (QRVO) are showing leadership potential in the current stock market rally.
Dow Jones Today: Treasury Yields
The Dow Jones Industrial Average rallied 1%, while the S&P 500 moved up 0.6%. The tech-heavy Nasdaq composite fell 0.2% in morning trade after paring some losses.
The 10-year Treasury yield turned higher to 1.644% Wednesday, after falling as low as 1.594% in morning trade.
Among exchange traded funds, the Innovator IBD 50 (FFTY) traded down 0.6% on Wednesday. The Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) fell 0.3%. Meanwhile, the SPDR S&P 500 ETF (SPY) moved up 0.5%.
Stock Market Rally: Nasdaq Tests Key Level Again
Amid the current stock market rally, the Dow Jones Industrial Average and S&P 500 indexes fell sharply Tuesday.
Meanwhile, the tech-heavy Nasdaq tumbled as it continues to see resistance around its key 50-day moving average line. 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.
Tuesday’s Big Picture commented, “The rotation in the stock market today continued. But this time, investors fled small caps and headed back into safe-haven Treasury bonds on the long end. Oil suffered one of its worst days in months.” For daily stock market commentary, check out IBD’s The Big Picture.
Dow Jones Stocks: Boeing
Inside the Dow Jones Industrial Average, Boeing is just above a 244.18 buy point in a cup base. The 5% buy zone goes up to 256.39.
Shares rose 2% Wednesday, on pace to snap a four-day losing streak.
Dow Jones News: Intel
Dow Jones chip giant Intel slashed gains to about 1.4% Wednesday morning. Shares surged early after the company said it would spend $20 billion on two big chip plants in Arizona.
Intel shares are back above a 63.64 buy point in a cup with handle following a recent breakout, according to IBD MarketSmith chart analysis.
Chip Stocks To Watch: Applied Materials, Nvidia
Chip stocks were lifted Wednesday by the Intel news and they continue to be some of the best technology names in the current stock market rally. The VanEck Vectors Semiconductor ETF (SMH) was a new IBD SwingTrader addition amid a 2.3% rise on Monday. The ETF fell 0.9% Wednesday morning.
Applied Materials continues to rebound from its 50-day support level. Shares jumped 6% Wednesday to hit a new high.
ASML jumped back above its 50-day line Monday, and added another 5% Wednesday. Shares are in week six of a potential base. The minimum length of a cup base is six weeks, so a new buy point could emerge at the end of the week.
Qorvo found support at its 50-day line in recent sessions. Shares are closing in on a 191.93 buy point, while an early entry exists at 185.96. Early Wednesday, Qorvo stock moved up 0.4%.
According to IBD Stock Checkup, MKSI 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.
Chip giant Nvidia fell nearly 1% Wednesday. The graphics-chip maker could be forming the right side of a new base, but it’s a bit too early for a conventional buy point. A strong day to reclaim the 50-day line would be bullish for the stock’s prospects.
Stocks Near Buy Zones: Alphabet, Wayfair
IBD Leaderboard stock Alphabet completed a five-week flat base Friday, creating a new buy point at 2,145.24, according to IBD MarketSmith chart analysis. Shares are about 6% below the new entry. GOOGL stock moved up 0.7% Wednesday.
According to Leaderboard commentary, “Alphabet has made better progress than other big-cap techs lately. Support at the 21-day line is defining the current chart action. The last base was second stage.”
Monday’s IBD 50 Stocks To Watch pick, Wayfair, is trying to break out past a 343.09 buy point in a cup with handle. Shares fell 2% Wednesday and are below the buy point.
GME Stock Dives On Earnings
GME stock dived 18% after management abruptly ended a post-earnings conference call late Tuesday. GameStop missed Q4 estimates but reported strong comp sales in early Q1.
On Jan. 28, GME stock surged as high as 483 before plunging in February. Shares rebounded as high as 348.50 in March, but they closed Tuesday at 181.75.
Tesla stock turned slightly lower Wednesday morning, looking to add to Tuesday’s 1.2% loss. Early Wednesday, CEO Elon Musk tweeted, “You can now buy a Tesla with Bitcoin.”
Shares of Tesla ended Tuesday about 26% off their 52-week high. Tesla stock could be forming a new base, but it is too early for a new risk-optimal buy point.
On Feb. 22, Tesla 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.
Dow Jones Leaders: Apple, Microsoft
Among the top Dow Jones stocks, Apple fell 0.7% Wednesday, threatening to add to Tuesday’s 0.7% loss. Apple stock is rebounding from its long-term 40-week line and could soon again 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, software giant Microsoft moved down 0.6% Wednesday, but remains above its key 50-day line. Shares are back above their 232.96 buy point and are approaching a 246.23 buy point in a new flat base.
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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