Dow Jones Rallies, Tech Stocks Reverse Lower As Yields Jump; Tesla Stock Slides



The Dow Jones Industrial Average briefly rallied more than 150 points early Friday, as Treasury yields jumped. EV giant Tesla stock slid, while Dow Jones giant Boeing is at a new buy point.


Among the Dow Jones leaders, Apple (AAPL) fell 0.1% Friday, while Microsoft (MSFT) moved up 0.5% in today’s stock market. Boeing (BA) is back in buy range following a recent breakout.

Tesla (TSLA) slid 2% in morning trade following Thursday’s upside reversal.

Among the top stocks to watch, chip leaders Applied Materials (AMAT), ASML (ASML), MKS Instruments (MKSI) and Qorvo (QRVO) are showing leadership potential in the recent stock market weakness.

Meanwhile, Alphabet (GOOGL) is below a buy point as it builds a new base. Alphabet was featured in this week’s Stocks Near A Buy Zone column.

Alphabet and Microsoft are IBD Leaderboard stocks. MKS Instruments was a recent IBD Stock Of The Day.

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Dow Jones Today: Treasury Yields

The Dow Jones Industrial Average rallied 0.4%, while the S&P 500 moved up 0.3%. The tech-heavy Nasdaq composite fell less than 0.1% in morning trade after reversing lower.

The 10-year Treasury yield briefly fell below 1.6% Thursday before rebounding. On Friday morning, the 10-year Treasury yield rose to 1.651%.

Among exchange traded funds, the Innovator IBD 50 (FFTY) rallied 2.1% Friday. The Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) was up 0.4%. Meanwhile, the SPDR S&P 500 ETF (SPY) moved up 0.5%.

Stock Market Rally

Amid the current stock market rally, the Dow Jones Industrial Average and S&P 500 index looked to add to Thursday’s bullish upside reversals.

Meanwhile, the tech-heavy Nasdaq 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 moves decisively above resistance, 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. But now the major stock indexes are struggling again.

Thursday’s Big Picture commented, “The stock market reversed higher Thursday after rebounding from morning losses. The Dow Jones Industrial Average led the major stock indexes higher, staging a bullish upside reversal.” For daily stock market commentary, check out IBD’s The Big Picture.

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Bitcoin Price

Bitcoin briefly topped $61,000 in mid-March to hit an all-time high. The price of Bitcoin touched its high-water mark on March 13, topping out at $61,556.

The price of Bitcoin rallied about 1% Friday to trade around $52,800, according to CoinDesk. The Grayscale Bitcoin Trust (GBTC) rose nearly 2% in morning trade after Thursday’s bullish reversal.

Dow Jones Stocks: Boeing

Inside the Dow Jones Industrial Average, Boeing is just above a 244.18 buy point in a cup base, according to IBD MarketSmith chart analysis. The 5% buy zone goes up to 256.39.

Shares slipped 0.4% Friday, threatening to give back a part of Thursday’s 3.3% advance.

Chip Stocks To Watch: Applied Materials, ASML, Qorvo

Chip stocks continue to be some of the best technology names amid the recent stock market weakness.

Applied Materials hit a new high Wednesday before backing off 1.1% Thursday. The chip leader is an IBD SwingTrader stock. Shares rallied 2% Friday.

ASML continues to build the right side 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. ASML shares rose 2.4% Friday.

Qorvo gave up its 50-day line amid Wednesday’s sell-off. Shares are closing in on a 191.93 buy point, while an early entry exists at 185.96. Qorvo stock moved up 0.8% Friday.

Recent IBD Stock Of The Day MKS Instruments briefly triggered the 7%-8% loss-cutting sell rule from a 177.46 buy point in a double bottom Thursday. Shares rallied 2.6% Friday.

According to IBD Stock CheckupMKSI 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.

Stocks Near Buy Zones: Alphabet

IBD Leaderboard stock Alphabet is approaching a flat base’s 2,145.24 buy point, according to IBD MarketSmith chart analysis. Shares are about 6% below the new entry. GOOGL stock moved down 0.1% Friday.

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.”

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Tesla Stock

Tesla stock slid 2% Friday morning following Thursday’s 1.6% gain.

Shares of Tesla ended Tuesday about 28% 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 0.1% Friday, as it looks to add to Thursday’s 0.4% gain. Apple stock continues to hold above its long-term 40-week line and could soon make another run for 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 up 0.5% Friday, and remains right at its key 50-day line. Shares are back at 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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