The Dow Jones Industrial Average sank more than 800 points on coronavirus fears early Wednesday morning as the record recovery in the stock market took a breather. Dow Jones shares Apple fell from all-time highs, while StoneCo, backed by Warren Buffett, gave up on the recent buying point.
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First-class shares Apple (AAPL) and Microsoft (MSFT) lost 1.9% and 2.1%, respectively, in today’s stock market. Dow Jones Shares Walmart (WMT) continues to operate below a new point of purchase. Shares in or near buy zones include EII day shares StoneCo (STNE) Taiwan Semiconductor (TSM) and stock of IBD classification tables Netflix (NFLX)
DJIA Today: Stock market losses increase
The Nasdaq compound fell 2.5% early Wednesday, receding from Tuesday’s all-time highs. The S&P 500 fell 2.8%, while Dow Jones industrialists lost 2.9%.
Among exchange-traded funds, Innovator IBD 50 (FFTY) was down 3.3%. The fastest growing stock ETF is approximately 8% off its 52-week high. Meanwhile, the Invesco QQQ Trust (QQQ) ETF linked to the Nasdaq 100 fell 2.4%, and the SPDR S&P 500 (SPY) ETF fell 2.9%.
The recovery in the coronavirus stock market continued its record on Tuesday as the Nasdaq compound reached another record high. Nasdaq, powered by technology, increased an incredible 19 in the last 22 trading sessions.
Within the recovery of the coronavirus stock market, Nasdaq, technological and heavy, has risen 12.9% during the year until the close of Tuesday. Meanwhile, the S&P 500 and DJIA fell 3.1% and 8.4%, to date, through the close of June 23.
Coronavirus news
The coronavirus outbreak continues to spread throughout the United States. USA According to the Worldometer data tracker, the cumulative number of confirmed cases in the US. USA It exceeded 2.4 million on Wednesday. Although new daily cases increase in the short term, the increase in deaths continues to decrease.
The cumulative total of confirmed Covid-19 cases since the start of the outbreak worldwide topped 9.3 million on Wednesday, with more virus-related deaths rising to more than 480,000.
IBD Live: a new tool for daily stock market analysis
Coronavirus Stock Market Rally
According to IBD’s The Big Picture, the rally in the coronavirus stock market remains on an uptrend after recovering from the lows of more than three months ago on March 23. The major stock indices confirmed the rebound as a new uptrend on April 2.
According to The Big Picture on Tuesday, “FAANG shares continued to show leadership and helped propel the Nasdaq 100 tracking ETF Invesco QQQ Trust to a gain of almost 0.9% and new all-time highs. At 10,209, with five days remaining in the second quarter the Nasdaq 100 has a huge profit of over 30% for the second quarter. “
Actions to watch include the main actions of IBD’s long-term leaders. IBD’s list of long-term Leaders focuses on companies with stable earnings growth and price performance.
Stock market ETF strategy and how to invest in the current uptrend
Dow Jones News: Walmart’s new point of purchase
Among the Dow Jones shares, Walmart continues to form a flat base with a point of purchase of 133.48. Shares fell 1.1% in the morning trade.
The retail giant is approximately 9% from the new point of purchase as it finds support on its 200-day long-term line. But stocks are still below their 50-day line.
A major weakness is the lagging relative line of force of the stock. Walmart shares have not been participating in the stock market rebound since they hit a record high on April 20.
Featured actions to watch: StoneCo, TSMC, Netflix
On Tuesday, IBD StoneCo Day Stock exploded above a buy point of 40.27 in a cup with a handle amid a 4.7% advance, according to MarketSmith chart analysis. The shares are below the new buying point after the 5.9% drop on Wednesday morning.
Warren Buffett is a prominent sponsor. His sign Berkshire Hathaway (BRKB) owns 14.17 million shares, representing 8% of all StoneCo shares.
Tuesday’s IBD 50 stock pick, chip leader Taiwan Semiconductor, also known as TSMC, is nearing a new buying point at 58.14. Shares are roughly 3% below the new point of purchase amid Wednesday’s 0.9% loss.
IBD Stock Checkup shows that TSMC’s shares are rated 97 out of the highest possible IBD composite rating of 99, making it one of the highest-rated stocks in the chip manufacturing industry. Composite rating, an easy way to identify the fastest growing stocks, is a combination of fundamental metrics and key techniques to help investors assess a stock’s strengths.
FANG stock leader Netflix gave up its buy point of 459.07 on a flat basis after Monday’s breakout. The 5% buy range goes up to 482.02. Early on Wednesday, shares fell 2.3% to fall below the entry.
Netflix is a member of the IBD leaderboard. According to the leaderboard comment, “Netflix is in the buying range after exiting a flat base in active trading. It rose to a full position on Monday.”
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones’ top stocks, Apple fell 1.9% early Wednesday after stocks rose to new highs on Tuesday, reaching 368.53 per share.
The shares are well spread beyond the 319.79 buy point, which offered additional entry. The entry was an opportunity for investors to increase their positions. Meanwhile, stocks are above the 20% -25% profit-taking zone from the 288.35-cup-with-handle purchase point.
Software leader Microsoft dropped from all-time highs early Wednesday with a 2.1% drop. Stocks extend beyond the 187.61 point of purchase of a cup with a handle. The 5% buy range goes up to 197.
Bullish, the RS stock line is at new highs after a strong rally in the last trading sessions. The RS line measures the performance of a share price against the general market.
The blue giant is a common idea of the IBD leaderboard and a long-term leader of IBD.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on growth stocks and the Dow Jones Industrial Average.
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