The Dow Jones Industrial Average rallied over 100 points Friday, while tech stocks dropped as Treasury yields rebounded amid a surprise jump in inflation data. Tesla stock slid in morning trade. Tech leaders Align Technology, Nvidia and Square approached new buy points.
Alphabet, Boeing and Microsoft are IBD Leaderboard stocks, while Align is an IBD SwingTrader stock. Nvidia was 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: Treasury Yields, Inflation Data
The Dow Jones Industrial Average rose 0.2%, while the S&P 500 moved up less than 0.1%. The tech-heavy Nasdaq composite declined 0.3% in morning trade after paring losses.
U.S. Stock Market Today Overview
Last Update: 10:36 AM ET 4/9/2021
The 10-year Treasury yield jumped near 1.68% early Friday, after closing around 1.63% Thursday, according to the CBOE, on pace to snap a three-day losing streak.
Ahead of the stock market open Friday, the U.S. producer price index jumped 1% in March, more than the expected 0.5% rise.
Stock Market Rally: Dow, S&P At Record Highs
Amid the current stock market rally, the Dow Jones Industrial Average is just off record highs, while the S&P 500 climbed to new high ground on both Thursday and Friday.
Meanwhile, the tech-heavy Nasdaq regained its key 50-day moving average last week and sits just off its all-time highs.
Thursday’s Big Picture commented, “On March 31, the Nasdaq staged a bullish follow-through day, as tech stocks finally rotated back into favor. Through Thursday, the Nasdaq rallied more than 4% from the closing price on March 31. During that time frame, the Nasdaq regained its key 50-day line and moved above resistance around the 13,600 level. The tech-heavy composite is at its highest level since Feb. 19. It is now about 2% from prior highs.”
Bitcoin hit its high-water mark on March 13, topping out at $61,556. On Friday, the price of Bitcoin rallied near $58,500 in morning trade, according to CoinDesk.
The Grayscale Bitcoin Trust (GBTC) moved up more than 2% Friday, on pace to add to Thursday’s 3.1% gain.
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 Friday, shares declined nearly 1%.
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 at the top of the 5% buy zone that goes up to 2,252.50 amid Friday’s 0.1% fall.
According to Leaderboard commentary, “Alphabet held up better than other big-cap techs when the sector slumped. Support at the 21-day line helped the stock climb to new highs. 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 Friday, Facebook stock traded flat and is still in buy range.
Stocks To Buy And Watch: Nvidia, Square, Align
Nvidia stock pared losses to about 0.5% Friday.
Per Leaderboard commentary, “The previous base had multiple flaws, including a weak RS line. The latest base was third stage, but because the current base undercut that prior pattern, the base count has reset. The stock is finally above its 50-day line.”
Square advanced about 1% Friday, on pace to add to a seven-day win streak. Shares are approaching a 283.29 buy point in a cup base. This week, Square stock broke out above a trend-line entry around 242.
According to IBD Stock Checkup, Square stock boasts a strong 98 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.
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 added 0.2% Friday morning.
Tesla stock skidded over 1% Friday morning. 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 rose 0.6% Friday, on pace to add to its six-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 up 0.2% in morning trade Friday. Microsoft is breaking out past a flat base’s 246.23 buy point and is in the buy range 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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