Dow Jones futures were lower, and tech futures sold off early Tuesday, as Treasury yields jumped to new highs. Apple and Tesla stock slid in premarket trade, while Dow giant Boeing is in buy range.
Among the Dow Jones leaders, Apple (AAPL) declined 1% premarket Tuesday, while Microsoft (MSFT) also lost 1% in today’s stock market. Boeing (BA) is back in buy range following Monday’s bullish move and rallied 1% ahead of the open.
Tesla (TSLA) skidded over 2% premarket Tuesday, threatening to extend a losing streak to three sessions.
Dow Jones Futures Today: Treasury Yields
Ahead of the stock market open Tuesday, Dow Jones futures dropped 0.1% vs. fair value, while S&P 500 futures moved down 0.3%. Nasdaq 100 futures lost 0.7% vs. fair value. Remember that trading in Dow Jones futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Early Tuesday, the 10-year Treasury yield rose as high as 1.776%, hitting a 14-month high before paring gains to 1.763%. On March 19, the 10-year Treasury yield spiked as high as 1.754%.
On Monday, the 10-year Treasury yield jumped to 1.721%, adding to Friday’s gains.
Among exchange traded funds, the Innovator IBD 50 (FFTY) was unchanged early Tuesday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) lost 0.7% early Tuesday, while the SPDR S&P 500 ETF (SPY) moved down 0.15%.
Stock Market Rally: Nasdaq Set For Another Test?
Amid the current stock market rally, the Dow Jones Industrial Average set all-time highs Monday, while the S&P 500 index snapped a two-day win streak.
Meanwhile, the tech-heavy Nasdaq remains below its key 50-day moving average. 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.
Monday’s Big Picture commented, “With a follow-through signal on the S&P 500 Friday, the stock market’s posture improved. Investors should be building up their portfolios, adding institutional-quality companies that break out of sound bases or other proper entries. But the stock market’s pesky problem this year is a lack of consistency, and it didn’t go away with the follow-through. (The follow-through confirmed a rally attempt started in early March.)”
Despite a resumed uptrend, the stock market’s choppiness has made it hard to make progress. Given such difficulty, it’s best to maintain a more conservative stance until the market proves its recent strength isn’t fleeting.
Bitcoin hit its high-water mark on March 13, topping out at $61,556. The price advanced about 2% Tuesday to trade around $59,000, according to CoinDesk.
The Grayscale Bitcoin Trust (GBTC) looked to continue its rebound from the 50-day moving average following Monday’s 6.5% rise.
Dow Jones Stocks: Boeing
Inside the Dow Jones Industrial Average, Boeing is back in buy range above a 244.18 buy point in a cup base. The 5% buy range goes up to 256.39. Shares rallied about 1% premarket Tuesday.
Boeing was featured as Monday’s IBD Stock Of The Day.
Stocks Near Buy Zones: Alphabet, Facebook
IBD Leaderboard stock Alphabet continues to form a flat base with a new buy point at 2,145.24, according to IBD MarketSmith chart analysis. Shares are about 5% away from the new entry amid Monday’s 1% gain. The stock was slightly higher premarket Tuesday.
According to Leaderboard commentary, “Alphabet has made better progress than other big-cap techs lately. Support at the 21-day line is now flimsy. Watch for the stock to find support as it tests the 50-day line. The last base was second stage.”
Fellow FANG stock leader Facebook is tracing a cup with handle with a 299.81 buy point. Shares moved up 2.8% Monday and are about 3% away from the new entry. Early Tuesday, Facebook stock lost about 0.5%.
According to IBD Stock Checkup, FB stock shows a solid 92 out of a perfect 99 IBD Composite Rating. The IBD Composite Rating helps investors easily measure the quality of a stock’s fundamental and technical metrics.
Tesla stock skidded over 2% premarket Tuesday, adding to Monday’s 1.2% loss and threatening to extend a losing streak to three sessions.
Shares of Tesla ended Monday about 32% 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
Dow Jones Leaders: Apple, Microsoft
Among the top Dow Jones stocks, Apple fell about 1% premarket Tuesday, on pace to snap a three-day win streak. Apple stock is rebounding from its 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 1% premarket Tuesday. 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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