The Dow Jones Industrial Average fell more than 300 points on Tuesday as Treasury Secretary Janet Yellen warned of a rate hike. Apple, the leader of the Dow Jones, fell sharply, while Tesla shares fell through a key support level at noon.
Among the leaders of the Dow Jones Apple (AAPL) fell nearly 4% on Tuesday, while Microsoft (MSFT) fell 2% in today’s stock market. Goldman Sachs (GS) is trading near the new buy point.
Tesla (TSLA) fell more than 3% on Tuesday morning, threatening to add 3.5% to Monday’s loss.
Among the best stocks to buy and watch are MarineMax (HZO), Nvidia (NVDA) and PayPal (PYPL) are in or near the shopping area.
Microsoft and Nvidia are on the IBD leaderboard. MarineMax became IBD’s stock of the day on Monday. Apple and Goldman Sachs were featured in the “Stocks Close to Buy” column this week.
Dow Jones Today: Yellen’s Comments
The Dow Jones Industrial Average fell to 0.6% on Tuesday afternoon, while the S&P 500 lost 1.3%. High-tech composite Nasdaq fell 2.7% at noon.
At noon Monday, Treasury Secretary Janet Yellen said, “We may have to raise interest rates a little to keep our economy from overheating.” The comments came from the Atlantic Future Economy Summit.
US stock market review today
|Index||Symbol||Price||Profit Loss||% Change|
|S&P 500||(0S and P5)||4154.01||-38.65||-0.92|
Last updated: 10:30 ET 05/04/2021
Among ETFs, the Innovator IBD 50 (FFTY) fell 3.5% on Tuesday. The Nasdaq 100 Invesco QQQ Trust ETF (QQQ) is down 1.9%. Meanwhile, the SPDR S&P 500 ETF (SPY) was down 1%.
Future in focus, Yellen tries to return Warning; The market rally has split again
Stock Market Rally: Dow Jones Falls From Highs
While the stock market remains in a “confirmed uptrend,” sharp losses on Tuesday knocked the Dow Jones Industrial Average and S&P 500 off record highs. Meanwhile, Tuesday’s action pushed the tech-savvy Nasdaq further away from its own all-time record and below its 21-day exponential moving average support.
The Big Picture column on Monday said: “The price movement of the major stocks may look good, but the covert action has created a challenging environment for growth investors. If you have not been in sync with the market and your portfolio is having difficulty moving forward, there is no point in investing 100%. Free your laggards and hold on to your top performers. It’s okay to keep some money at this stage. “
For more commentary on the stock market, check out IBD’s publication The Big Picture.
ETF Stock Market Strategy and How to Invest
Dow Jones: Goldman Sachs
According to IBD MarketSmith charting analysis, Dow Jones Goldman Sachs is working on a new flat base with a buy point of 356.95. The stock fell 1% on Tuesday and is about 3% off entry.
The latter base is the formation of the second stage, which indicates that the stock may still be in an earlier part of the long-term rise in prices.
The investment banking giant is on the brink of rupture in 2021 and has grown by more than 30% to date.
Stocks to buy and watch: MarineMax, Nvidia, PayPal
According to IBD MarketSmith chart analysis, on Monday, IBD Stock Of The Day, MarineMax, is approaching 64.09 pips in the base cup. The stock rallied slightly on Tuesday and is about 5% from entry.
Nvidia’s IBD leaderboard closed on Monday about 3% below 615 buy points in the new cup base. The 5% buy zone rises to 645.75. Shares lost more than 5% on Tuesday
According to a comment on the leaderboard, “Nvidia broke out of the cup after previous models failed. The breakout has stalled, but stocks are not in immediate danger. “
PayPal, the leader in payments, continues to create a cup and handle, offering a point of purchase at 277.96. The stock was down 4% on Tuesday to extend its losing streak to four sessions. PYPL stock pulls back at 50-day support.
According to the IBD Stock Checkup, PYPL shares are performing at a solid 85 out of ideal 99 IBD Composite Rating. The IBD Composite Rating helps investors easily assess the quality of a stock’s fundamentals and technical performance.
IBD Live: a new tool for daily stock market analysis
Tesla shares fell more than 3% at noon on Tuesday, which could exacerbate the 3.5% drop on Monday. Stocks are falling below their key 50-day moving average line. If Tesla fails to recover above this key level, it could signal further weakness.
The electric car giant is shaping a new cup with a handle, offering 780.89 points of purchase. But this is a late stage base.
Tesla shares hit an all-time high of 900.40 on January 25, up 93% from 466 buying points in the order book.
Dow Jones Leaders: Apple, Microsoft
Among the leading Dow Jones stocks, Apple fell nearly 4% on Tuesday, falling further from the 135.63 buy-point cup. On April 29, Apple stock tried to break out following strong earnings reports, but was turned down. The stock is now about 3% below entry.
Software giant Microsoft fell 2% on Tuesday, the pace of decline for a fifth straight session. According to IBD MarketSmith’s chart analysis, the stock is once again in a 5% buying range, breaking past the fixed pivot buy point of 246.23, which tops out at 258.54.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on growth stocks and the Dow Jones Industrial Average.
YOU MAY ALSO LIKE:
The Most Growing Stocks That Are Worth Buying and Watching
Find out how to time the market using the IBD ETF Market Strategy
Find the best long term investments with long term IBD leaders
MarketSmith: Research, Charts, Data and Coaching – All in One Place
How to Research Rising Stocks: Why This IBD Tool Makes Finding the Best Stocks Easier