The Dow Jones Industrial Average rose 100 points on Wednesday before details of President Biden’s $ 2 trillion infrastructure package were revealed. Apple, Boeing, and Tesla stocks rebounded while Lululemon fell in earnings.
Under the Dow Jones leader, Apple ((AAPL) rebounded 1.1% on Wednesday while Microsoft ((MSFT) rose by 0.4% in today’s stock exchange. Boeing ((BA) remains in the buy range after the uptrend on Monday and gained 1.5% in morning trading.
Dow Jones Today: Biden Infrastructure Plan
After the exchange opened on Wednesday, the Dow Jones Industrial Average rose 0.25% while the S&P 500 rose 0.4%. The tech-heavy Nasdaq Composite gained 0.8% in morning trading.
On Wednesday, Biden will unveil a $ 2 trillion spending package that will focus on improving infrastructure. The plan will increase the corporate tax rate from 21% to 28% to aid pay.
Early Wednesday, the 10-year government bond yield fell to 1.723% after hitting a 14-month high of 1.765% on Tuesday.
Under Exchange Traded Funds, the innovator IBD 50 (FFTY) rose 1% on Wednesday. Nasdaq 100 Tracker Invesco QQQ Trust ETF (QQQ) gained 0.5% early Wednesday, while the SPDR S&P 500 ETF (SPY) rose 0.2% in morning trading.
Stock market rally: Nasdaq ready for another test?
Amid the current stock market rally, the Dow Jones Industrial Average fell from its all-time high on Tuesday, while the S&P 500 index fell for a second straight day.
Meanwhile, the tech-heavy Nasdaq remains below its major 50-day moving average. The Nasdaq has to overcome this important hurdle in order to maintain its uptrend. The 50 day line is a critical potential resistance level. If the Nasdaq clears it up, new highs could be on the horizon.
The big picture from Tuesday commented: “The dizzying optimism has sunk since the soaring days of Certainly GameStop ((GME), AMC Entertainment ((AMC), blackberry ((BB) and other seedy names that became WallStreetBets’ hunt group on Reddit. The Put-call volume ratio recently rose from its previous annual low of 0.46 to 0.76. This means that for every 100 buyers of bullish calls, 76 bearish puts were traded. Some observers believe that call option buying has decreased, adding to this ratio. “
Despite a resumption of the uptrend, the turmoil in the equity markets has made it difficult to move forward. Given these difficulties, it is best to maintain a more conservative stance until the market proves its recent strength is not fleeting.
Bitcoin hit its high water mark on March 13, trading at $ 61,556. Bitcoin price fell about 2% on Wednesday, trading around $ 57,800 according to data CoinDesk.
The Grayscale Bitcoin Trust (GBTC) wanted to continue its upswing from the 50-day moving average after rallying 2.8% on Tuesday.
Dow Jones Stocks: Boeing
Within the Dow Jones Industrial Average, Boeing is trading at the top of the buy range above a buy point of 244.18 on a cup basis. The buy margin of 5% rises to 256.39. Shares rose 1.5% on Wednesday.
Boeing was featured as IBD share of the day on Monday.
Stocks near buy zones: Alphabet, Facebook
IBD ranking Stock alphabet continues to form a flat base with a new buy point at 2,145.24 IBD MarketSmith Chart analysis. The stocks are about 5% away from the new addition due to the slight gain on Tuesday. The stock rose 0.2% on Wednesday.
Leaderboard comment said, “Alphabet has made better strides than other big-cap technicians lately. Support on the 21-day line is weak now. Look out for support as the stock hits the 50-days Line tests. The final base was second floor. “
FANG stock leader Facebook is tracking a handle mug with a buy point of 299.81. As of early Wednesday, Facebook shares rose 1.1%.
According to IBD Stock Checkup, FB warehouse shows a solid 91 from a perfect 99 IBD composite rating. With the IBD Composite Rating, investors can easily measure the quality of the fundamental and technical metrics of a stock.
Stock market income: Chewy, Lululemon
Chewy reported strong Q4 results on late Tuesday, beating estimates. The online pet food seller reported adjusted earnings of 5 cents per share of sales of $ 2.04 billion.
CHWY shares rose 12% early Wednesday but are still far from their old highs.
After the market closed on Tuesday, Lululemon exceeded the estimates for the fourth quarter, but gave a mixed year-round forecast.
LULU shares fell 4% in morning trading. Stocks ended Tuesday more than 20% below their 52-week high and below their 50-day line.
Tesla stock rose over 1% on Wednesday to boost earnings from 4% on Tuesday.
Tesla shares ended Tuesday 29% from their 52-week high. Tesla stock could create a new base, but it’s too early for a new risk-optimized buy point.
On February 22nd, Tesla broke its critical 10-week moving average line, a critical level of support. On January 25, Tesla stock hit a record high of 900.40 after rising 93% from 466 buy points in a trophy
Dow Jones Leaders: Apple, Microsoft
Under the tips Dow Jones stocksApple rose 1.1% on Wednesday to bounce back from Tuesday’s 1.2% decline. Apple stock is bouncing off its 40-week line and could try to regain its 10-week line soon.
On February 18, Apple stock triggered the 7% to 8% loss-reducing sell rule when it fell more than 7% below its buy point of 138.89 in a mug with a handle.
The software giant Microsoft gained 0.4% on Wednesday. The shares are back above their buy point of 232.96 and are approaching a buy point of 246.23 on a new flat basis.
Follow Scott Lehtonen on Twitter at @IBD_SLehtonen Learn more about growth stocks and the Dow Jones Industrial Average.
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