The Dow Jones Industrial Average is lower in today’s stock market after surpassing previous gains. Meanwhile, both the S&P 500 and the Nasdaq sold and traded closer to theirs in the last hour of the day. Continuing the theme seen in recent days, the Nasdaq led downwards as tech shares sold significantly.
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The stock market today
The small-cap Russell 2000 index fell 0.4%. Meanwhile, the Nasdaq composite is down 2.7%. The S&P 500 is down 1.3% while the Dow Jones is down 0.4%. According to preliminary data, the volume is trending higher on both the Nasdaq and the NYSE, compared to the day’s close on Tuesday.
The disappointing jobs report weighed in on the main index on Wednesday. According to the ADP, private payrolls rose to 117,000 in February, below Econoday’s consensus estimate of 165,000. The Labor Department will release official February employment data on Friday.
The market will continue to move to a larger area, away from various technology related sectors such as enterprise software, software, internet and computer hardware. In addition, chip stocks continued to trade lower. Eichers Philadelphia Semiconductor Index ETF (SOX) is down about 3.1%, compared to the Nasdaq’s overall decline.
However, industry groups such as banks, airlines and oil and gas stocks were affected. Oil and gas companies rallied ahead of an important meeting between OPEC and Russia on Thursday to discuss future production plans. Energy Select Sector SPDR Fund (XLE) has increased by 1.4% after surpassing previous gains.
Elsewhere, the innovator IBD50 ETF (FFTY) fell 3.4%. Shares of ETF are once again testing support at the 50-day line. Shares leading to a decline in growth-focused ETFs on Wednesday were education online education stocks Chag (CHGG) and Etsy (ETSY) with losses of 8% and 12%, respectively.
Dow Jones today
The Dow Jones turned negative considering the previous gains. But the main index was very mixed with half the stocks falling and the other half rising. Leading down, including major tech stocks Intel (INTC), Apple (AAPL), Micro .ft (MSFT) and Salesforce.com (CRM).
Shares of tech-leading Apple Momentum have broken support at its 50-day line in recent days for the first time since October. The stock is currently trying to regain the support of this key sector, according to a Marketsmith chart analysis.
Meanwhile, chipmaker Intel lost more than 2%. On the positive side, the stock is still close to 65.21 by points in the larger double-bottom base. The stock is 8% away from the key buy zone. The chart can also be interpreted at 63.64 with a low entry as a cup-and-handle handle base. Shares recently found support on both their 50-day and 200-day lines.
Shares of Salesforce continue to fall below their 50-day and 200-day lines after breaking these key areas of support last week. The stock forms a consolidation base with 271.02 by points. Shares stay away from buy points, currently 24% away.
Meanwhile, like shares American Express (AXP), Boeing (B.A.) and JP Morgan Chase (JPM) started with a gain of 1.9% or more.
Shares with earnings
Shares of Viva Systems (VEEV) lost more than 7% in heavy volume on Wednesday. The medical software maker reported better-than-expected Q4 earnings late Tuesday and sold out despite a year-round pping ping guide. Shares recently generated a 7% -8% loss-cutting sell signal after failing to break out of 314.09 by points in a cup without a handle. The stock is currently testing support on the 200-day line.
Elsewhere, FuboTV (FUBO) fell 18% and sold hard. Sports-First Live TV streaming service and recent IPO stocks are currently trading below its 50-day line, according to a Marketsmith analysis.
The company slipped in the report that the new IPO stock had more losses than expected. But on the positive side, the company said it added more subscribers to Q4 than expected.
Investors should be aware of the increased risk with new investments at this time, as the market is currently in “uptrend under pressure” mode.
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