Dow Falls As Bitcoin Jumps Toward $52,000; Apple, Tesla Hit Key Support Level, While Shopify Tumbles
The Dow Jones Industrial Average fell more than 100 points Wednesday before cutting losses, as Bitcoin rose to nearly $52,000. Tech giants Apple and Tesla stock are testing a key support level. Shopify tumbled 7% after reporting earnings ahead of the stock market open.
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Among the Dow Jones leaders, Apple (AAPL) was down 1.9%, while Microsoft (MSFT) declined 0.5% in today’s stock market. Tuesday’s IBD Stock Of The Day, Caterpillar (CAT), is in buy range above a new buy point.
Tesla (TSLA) threatened to extend Tuesday’s losses, falling as much as 3% Wednesday morning. Shopify (SHOP) tumbled more than 7% on earnings ahead of the stock market open.
Chip giants Advanced Micro Devices (AMD) and Nvidia (NVDA) are among the top stocks in or near buy zones in Wednesday’s stock market action.
Apple, Microsoft and Tesla are IBD Leaderboard stocks. Meanwhile, AMD and Nvidia were featured in this week’s Stocks Near A Buy Zone column.
Dow Jones Today
On Wednesday, the Dow Jones Industrial Average fell 0.1% after cutting losses, while the S&P 500 declined 0.5%. The tech-heavy Nasdaq composite sold off 1.3% in midday trade.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 31470.90 | -51.85 | -0.16 |
| S&P 500 | (0S&P5) | 3909.23 | -23.36 | -0.59 |
| Nasdaq | (0NDQC ) | 13852.67 | -194.83 | -1.39 |
| Russell 2000 | (IWM) | 221.86 | -3.97 | -1.76 |
| IBD 50 | (FFTY) | 47.62 | -1.33 | -2.72 |
Last Update: 11:18 AM ET 2/17/2021 |
||||
Among exchange traded funds, Innovator IBD 50 (FFTY) traded down 1.5% Wednesday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) fell 0.7%. Meanwhile, the SPDR S&P 500 ETF (SPY) lost 0.2%.
Stock Market Rally
Looking back at the current uptrend, November was a key month for the stock market. IBD’s The Big Picture flagged the new uptrend following the market’s bullish follow-through day on Nov. 4. Meanwhile, the middle of February has the Dow Jones Industrial Average, Nasdaq and S&P 500 hitting record highs.
Tuesday’s Big Picture commented, “The Nasdaq on Tuesday scored its second distribution day over the past 25 sessions. Fortunately for the bulls, the professional selling appeared mild. At 14,047.50, the tech-driven index still holds a solid cushion above the useful 21-day exponential moving average.”
Due to the recent strength, investors can shift back to an offense stance, with an understanding that there are still good reasons for caution. Look for stocks that are breaking out above new buy points, like Nvidia.
Focus on stocks that showed strong relative strength during the recent weakness. They could be some of the market’s leaders if the indexes are able to continue their record-setting ways.
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Bitcoin Price
The price of Bitcoin jumped more than 4% to all-time highs Wednesday morning. Bitcoin reached as high as $51,735 before paring gains to about $50,900 in morning trade, according to CoinDesk.
The Grayscale Bitcoin Trust (GBTC) advanced nearly 4% and is at new highs.
Dow Jones Stocks: Caterpillar
Inside the Dow Jones Industrial Average, Caterpillar is in buy range above a 200.27 buy point in a short consolidation. Shares fell 0.1% Wednesday morning.
CAT shares broke out above the buy point on Tuesday. The 5% buy zone goes up to 210.28.
Shopify Earnings
Early Wednesday, top growth stock Shopify reported strong Q4 results. The company’s earnings, revenue and gross merchandise volume topped December-quarter analyst estimates.
Shopify stock tumbled as much as 8% in morning trade before paring losses. It remains extended from a 1,285.29 buy point and the 50-day line.
Stocks To Watch: AMD, Nvidia
Top chip stock Advanced Micro Devices is approaching a 99.33 buy point in a flat base. Shares declined more than 1% Wednesday, threatening to add to Tuesday’s 2.5% decline.
AMD was Tuesday’s pick for the IBD 50 Stocks To Watch.
IBD Leaderboard stock Nvidia is in the 5% buy zone past a flat base’s 587.76 buy point amid a 1.25% fall Wednesday. On Feb. 8, shares broke out above an early entry at 560.07.
According to Leaderboard commentary, “Nvidia broke out of a flat base and is in buy range. With this move, investors could add to their position, or make an initial purchase.”
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Tesla Stock
Tesla stock looked to fall for a second straight day Wednesday, moving down more than 3%. Shares are testing their 10-week moving average line, a critical support level. A strong move from this key support level would signal a new buy area.
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 moved down 1.5% Wednesday, and remains below its 138.89 buy point in a cup with handle. Shares gave up the entry on Jan. 28. Similar to Tesla, Apple stock is testing its 10-week line.
Meanwhile, Microsoft fell 0.5% Wednesday morning, looking to add to Tuesday’s 0.5% loss. Shares of the software giant broke out past a 232.96 buy point in recent sessions. The stock is at the top of the 5% buy zone that goes up to 244.61.
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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