The Dow Jones Industrial Average briefly fell 75 points early Tuesday, as the Dow and S&P 500 trade just off Monday’s record highs. Tesla stock reversed higher after Monday’s surge, while tech giants Alphabet, Facebook and Microsoft are in new buy zones.
Tesla (TSLA) reversed higher Tuesday, as it looks to add to Monday’s 4.4% surge powered by the company’s strong Q1 deliveries. FANG leaders Alphabet (GOOGL) and Facebook (FB) broke out past new buy points Monday and are in buy range.
Alphabet, Boeing and Microsoft are IBD Leaderboard stocks. Nvidia and Qorvo were featured in this week’s Stocks Near A Buy Zone column. Alphabet and Microsoft were discussed in Monday’s IBD Live show.
Dow Jones Today
The Dow Jones Industrial Average erased the bulks of its early losses, while the S&P 500 moved up less than 0.1%. The tech-heavy Nasdaq composite rallied 0.3% in morning trade.
U.S. Stock Market Today Overview
Last Update: 10:46 AM ET 4/6/2021
On Tuesday, the 10-year Treasury yield backed off to 1.683%, but remains near recent highs.
Stock Market Rally: Dow, S&P Hit New Highs
Amid the current stock market rally, the Dow Jones Industrial Average and S&P 500 eased from record highs Tuesday.
Meanwhile, the tech-heavy Nasdaq regained its key 50-day moving average on Thursday and moved past resistance around the 13,600 level Monday, extending a win streak to three sessions.
Monday’s Big Picture commented, “The Nasdaq’s 1.7% gain Monday marked a third straight day in which the index gapped up at the open. That is, the session’s low held above the prior session’s high. That’s called a bullish gap. Plus, this ‘laggard’ index — at least in 2021 — has created some nice space above its 50-day moving average.”
Bitcoin hit its high-water mark on March 13, topping out at $61,556. The price of Bitcoin edged lower Tuesday at around $57,700, according to CoinDesk.
The Grayscale Bitcoin Trust (GBTC) declined more than 3% Tuesday, giving up a part of Monday’s 4% climb.
Dow Jones Stocks: Boeing
Inside the Dow Jones Industrial Average, Boeing slipped in early trade, but remained narrowly out of buy range above a 244.18 buy point in a cup base. The 5% buy range goes up to 256.39. Shares on Tuesday dipped 1.1% to 256.44.
Stocks In Buy Zones: Alphabet, Facebook
IBD Leaderboard stock Alphabet is breaking out past a flat base’s new buy point at 2,145.24, according to IBD MarketSmith chart analysis. Shares are in the 5% buy zone that goes up to 2,252.50 amid Tuesday’s slight fall.
According to Leaderboard commentary, “Alphabet held up better than other big-cap techs when the sector slumped. Support at the 21-day line is now much better. The stock also found support at the 50-day line. The last base was second stage, which is positive.”
Fellow FANG stock leader Facebook is trading just above a cup-with-handle’s 299.81 buy point. On Tuesday, Facebook stock fell 0.3% and is still in buy range.
Chip Stocks To Buy And Watch: Nvidia, Qorvo
Nvidia stock rallied 0.2% Tuesday, on pace to extend a win streak to four sessions.
According to IBD Stock Checkup, Nvidia stock shows a solid 91 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.
Elsewhere in the semiconductor industry, Qorvo is in buy range past a 191.93 entry in a consolidation. Shares are also above an early entry at 186.96 following Friday’s breakout move. Qorvo stock lost 0.3% Tuesday.
Tesla stock reversed higher Tuesday morning, on pace to add to Monday’s 4.4% gain. Shares of Tesla are eyeing their 10-week line, which is a key resistance level.
Tesla 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 rallied 0.4% Tuesday, pushing its win streak to four sessions. 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 0.4% Tuesday. Microsoft is breaking out past a flat base’s 246.23 buy point and is in buy range.
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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