Dow Jones Falls As Powell Calls Higher Rates ‘Highly Unlikely’; Tesla Stock Jumps On Upgrade

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The Dow Jones Industrial Average fell 100 points Monday, as Fed Chairman Powell called it “highly unlikely” that the Fed will raise interest rates this year. Tesla stock jumped 3% on an analyst upgrade.




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Among the Dow Jones leaders, Apple (AAPL) fell 1% Monday, while Microsoft (MSFT) moved down 0.3% in today’s stock market. Boeing (BA) is back in buy range following last week’s losses.

Tesla (TSLA) jumped 3% Monday, looking to rebound from Friday’s 1% fall. FANG leader Facebook (FB) is in buy range after last week’s breakout.

Among the top stocks to watch, IPO leader Roblox (RBLX), Nvidia (NVDA), Square (SQ) and Align Technology (ALGN) are approaching new buy points.

Boeing, Microsoft and Roblox are IBD Leaderboard stocks, while Align is an IBD SwingTrader stock. Nvidia was featured in last week’s Stocks Near A Buy Zone column.

Dow Jones Today: Powell Comments

The Dow Jones Industrial Average fell 0.3%, while the S&P 500 moved down 0.2%. The tech-heavy Nasdaq composite declined 0.5% in morning trade.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 33705.81 -94.79 -0.28
S&P 500 (0S&P5) 4119.14 -9.66 -0.23
Nasdaq (0NDQC ) 13814.67 -85.51 -0.62
Russell 2000 (IWM) 220.92 -1.67 -0.75
IBD 50 (FFTY) 45.09 -0.43 -0.94
Last Update: 10:38 AM ET 4/12/2021

Fed Chair Jerome Powell commented, “I think it’s highly unlikely that we would raise rates anything like this year,” in an interview with CBS “60 Minutes” journalist Scott Pelley Sunday.

The 10-year Treasury yield briefly topped 1.68% early Monday, slightly higher from Friday’s close, according to the CBOE.

Among exchange traded funds, the Innovator IBD 50 (FFTY) traded down 1% Monday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) fell 0.3%. Meanwhile, the SPDR S&P 500 ETF (SPY) lost 0.15%.

Stock Market Rally: Dow, S&P At Record Highs

Amid the current stock market rally, the Dow Jones Industrial Average and S&P 500 climbed to new high ground on Friday.

Meanwhile, the tech-heavy Nasdaq sits just off its all-time highs amid a the index’s recent strength.

Friday’s Big Picture commented, “The distribution day count was wiped clean as a result of Friday’s gains. Distribution days for the S&P 500 on March 18 and March 23 were removed because the index rallied more than 5% from the closing price on each of those days. The Nasdaq’s March 23 distribution day was removed for the same reason.”


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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.

Early Monday, shares declined more than 2%.

Stocks In Or Near Buy Zones: Facebook, Roblox

IBD Leaderboard stock Roblox is approaching an IPO base’s 79.20 buy point, according to IBD MarketSmith chart analysis. Shares are also trying to climb above an aggressive entry at 72.96 amid Monday’s 2% early gain.

According to Leaderboard commentary, “Roblox is forming an IPO base, but remains far from the buy point. It has cleared an aggressive buy point at 72.96 but closed below it Friday.”

FANG stock leader Facebook is trading just above a cup-with-handle’s 299.81 buy point. On Monday, Facebook stock fell nearly 1%, but is still in buy range.

Stocks To Buy And Watch: Nvidia, Square, Align

Graphics-chip maker Nvidia continues to move up the right side of a new cup base, offering a 615 buy point. Be on the lookout for a potential handle to offer a more risk-optimal entry.

Nvidia stock declined about 1% Monday morning.

Square fell over 1% Monday, on pace to snap an eight-day win streak. Shares are approaching a 283.29 buy point in a cup base. Last week, Square stock broke out above a trendline entry around 242.

According to IBD Stock Checkup, Square 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.

IBD SwingTrader stock Align Technology decisively reclaimed its 50-day line Thursday with a 4.2% advance. A new buy point looms at 634.56 as a result of Align forming a cup base. Shares declined 1% Monday morning.


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Tesla Stock

Tesla stock jumped nearly 3% Monday morning before paring gains after Canaccord Genuity upgraded the electric-auto maker from hold to buy with a 1,071 price target. 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 below 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 1% Monday, on pace to snap its seven-day win streak. The company is delaying some MacBook and iPad orders due to the global chip shortage, according to Japan’s Nikkei news service.

Apple stock is rebounding from its 40-week line and is trying 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.

Software giant Microsoft moved down 0.3% in morning trade Monday. Microsoft is trading at the top of the 5% buy range past a flat base’s 246.23 buy point that tops out at 258.54.

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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