The stock market fell on Thursday morning in an attempt to catch the Dow Jones but the Nasdaq was selling. The stock market has seen a surge, with Nasdaq and growth stocks under heavy pressure in recent weeks amid rising bond yields. Federal Reserve Chairman Jerome Powell will call today, in which investors are looking for any possible comments regarding Treasury yields.
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The Dow Jones Industrial Average was down 0.2% in morning trading. But the S&P 500 sank 0.55%, lowering its 0.5-day line. The Nasdaq joint sank 1.35%.
Dow component Boeing (BA) is close to the buy point after flirting with a breakout on Wednesday. Brazilian miner Well (VALE), global steel giant ArcelorMittal (MT) and Special Chemicals Manufacturer Element Solutions (ESI) is also close to entries.
Boeing stock rose 1% as early as Thursday. But this is a difficult market for any purchase.
The UK has filed against the anti-trust probe. Apple (AAPL) on alleged anti-competitive practices on its App Store. Apple Pal is already in the US. And faces app store investigations by antitrust officials in the European Union.
Apple Pal stock fell 1%. Shares fell 2.45% on Wednesday. AAPL stock is below its 50-day line after the breakout fizzled in late January.
Walt Disney (DIS) will close at least 20% of its Disney store locations by the end of the year, including U.S. Includes at least 60. It will focus more on e-commerce. Disney is a recent example of relocating its business online. Disney stock fell 2% and is near the top of its buying range from a flat base.
Draftkings UFC With U.S. And after initially discussing a deal to become the only sportsbook and daily fantasy partner in Canada (DKNG) came down low.
Square (SQ) is buying a majority in J-Z’s music platform Tidal for 7 297 million. Will join the board of Jay-Z Square. Square stock fell 7%.
Burlington stores (BRL), has gone beyond the agile base. After three quarters of weak sales the sales f-price retailer reported a revenue% revenue gain.
Chipmaker and software maker Broadcom (AVGO) reported late at night. AVGO stock went to its 10-week line on Wednesday, but has been held above that level since opening. Broadcom is an Apple Plus iPhone supplier, but that’s only part of the business.
Disney stock is at SwingTrader.
The 10-year Treasury yield fell 0.1% to 1.46% after rising on Wednesday, ending a three-day slide. The 10-year Treasury yield briefly peaked at 1.6% last week.
Initial job claims rose to 745,000 last week from 730,000. Economists expect new filings to rise to 760,000.
Join IBD experts as they analyze additional stocks in the stock market boom on IBD Live.
Fed Chief Powell Plot ‘Twist’?
Fed Chief Jerome Powell will speak at a conference shortly after noon Middle Eastern time. That will be his last public remarks before the March 16 Fed meeting. The 10-year Treasury yield has soared over the past several weeks on the expectation that a large Biden stimulus bill, as the coronavirus epidemic fades next month, will stimulate economic recovery that could accelerate inflation. Prices of crude oil, copper and many other commodities have skyrocketed recently. While this is good news for mining, financial and many other so-called “real economy” companies and stocks, it has been a catalyst for growth to sell into stocks.
Powell and other policymakers have indicated they want rapid inflation and are probably not worried about 10-year Treasury yields below 2 years. But at the pace of rising yields Fed Govt. Leal has caught Brianard’s eye, she admitted Tuesday.
Powell stressed that he is focused on full employment, not the financial markets, although the rally in the stock market was in the context of reaching fresh highs. But investors want to hear that he is at least focusing on Treasury yields.
Will Powell be able to signal a policy change? There is speculation that the Federal Reserve may try to bring long-term yields by buying long-term treasury and short-term treasury purchases. The Fed worked before this “Operation Operation Twist”, in 1961 and again in 2011.
But even if Powell is ready for such a move, he won’t comment before the Fed meeting in mid-March.
Stock market rally on the brink
The stock market boom could be on its final legs. The confirmed uptrend has been “under pressure” for several days.
The Dow Jones Industrial Average fell 0.4% on Wednesday. The S&P 500 index fell 1.3%, closing above its 50-day line. The Nasdaq Composite sank 2.7%, tumbling below its 50-day line and closing at its February 23 low. All major index sessions close near the bottom.
If the S&P 500 passes its 50-day line and the Nasdaq loses more ground, the postseason stock market rally could end.
Investors need to focus on areas that are working in the name of speculative growth and scale back exposure.
Read the big picture tonight to keep up with market direction and leading stocks and sectors.
Please follow Ed Carson on Twitter IBD_ECarson For stock market updates and more.
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