Dow futures contracts changed slightly late Tuesday, while the S&P 500 and Nasdaq futures eased slightly as the House of Representatives prepares to give final approval to Biden’s stimulus bill of $ 1.9 trillion. The stock market bid saw a strong trading session on Tuesday as Treasury yields plummeted. The Dow Jones Index hit a record high before pulling back as the S&P 500 regained key levels. The Nasdaq index rebounded strongly but remains away from recent highs.
The new breakthroughs come from real economic names. Manufacturer of specialty chemicals Element Solutions (ESI) And the auto giant Stilants (STLA), While the steelmaking company Ternium (Texas) And car dealer Carmax (KMXExtended gains within the buying areas. Microsoft (MSFT) – a name lower than the high-octane and high-value name of Tesla stock – retrieved A. Point purchase In addition to several major levels.
Biden Stimulus Bill voting
The House of Representatives is set to give final approval to Biden’s stimulus bill of $ 1.9 trillion on Wednesday, to vote on the Senate version of the legislation. The Senate approved Biden’s stimulus bill, with some amendments, on Saturday. After the House vote, the stimulus bill will go to President Joe Biden’s office for signature.
The stimulus bill will provide $ 1,400 for many Americans, expanded unemployment benefits and aid for schools, state and local governments. It also includes major spending boosts on anti-poverty programs, Obama Care and private pension bailouts. It also contains very little money for vaccinations and tests for the Coronavirus.
After Biden’s massive stimulus bill – weeks after a second coronavirus aid package – Democrats in Congress are considering a larger spending package later this year focused on infrastructure. This latest package is likely to include large tax increases.
Impending spending bolstered interest rates and real-economy stocks, with higher Treasury yields weighing on growth names.
Dow Jones futures today
Futures contracts were for Dow Jones at fair value. S&P 500 futures are down 0.2% and Nasdaq 100 futures are down 0.3%.
The 10-year Treasury yield was at 1.54%, up in extended trade after falling on Tuesday.
At 8:30 AM on Wednesday ET, the Labor Department will release the Consumer Price Index for February. The CPI had not moved Dow Jones futures for some time, but the Treasury markets were signaling some concern about future inflation.
The number of coronavirus cases worldwide has reached 118.14 million. The death toll from Covid-19 has surpassed 2.62 million.
The number of coronavirus cases in the United States has reached 29.80 million, with the number of deaths exceeding 540,000.
Stock market Tuesday
The stock market rally saw an overall encouraging session on Tuesday, although the fade in close was not impressive. The 10-year Treasury yield fell 6 basis points to 1.53% after rising for several days. That was the catalyst for the growth of stocks.
The Dow Jones Industrial Average rose 0.1% on Tuesday Stock market trading, Faded badly in the final minutes after briefly setting a new record. The S&P 500 rose 1.4%, bouncing above the 50-day and 21-day lines. The Russell 2000 Index rose 2.1% above the 21-day level.
The Nasdaq Composite Index rose 3.7%, but is still below the 50 day line.
Tesla stock rose nearly 20%, its largest percentage gain in 13 months, driven by higher overall growth in addition to Strong China sales. Niu shares jumped 17%. Nvidia’s stock jumped 8% and Zoom’s stock fell 10%. But all 4 stocks are still well below the 50 day lines and need time to fix the damaged charts. Nvidia stock managed to regain the 200-day average, while Zoom was stuck below it.
TSLA and Nio shares rose modestly overnight.
between the The best ETFs, The Innovator IBD 50 ETF (fifty(4.2%, while the Innovator IBD Breakout Opportunities ETF)fit) Gained just over 5%, and both are closing in at 50 day streaks. IShares Technology and Software Expanded Fund (ETF)IGV) Rose 4.4%, with Microsoft keeping the all-time high, while ZM stock was a prominent component. (VanEck Vectors Semiconductor Foundation)SMHJumped 5.9%, with the main holding Nvidia.
Reflecting the most speculative stocks, the Ark Innovation ETF rose 7.65% and the Ark Genomics ETF declined 10.4%, after both suffered heavy losses in recent days. Tesla stock is the number 1 stock in ARK Investments ETFs.
Shares in buying areas
Element Solutions share rose 7.2% to 20.24, topping 18.50 Cup base Buy a point of large volume, according to MarketSmith Analysis. The 5% stalking area extends for ESI stock to 20.48. The Relative strength line It is at a new high, reflecting its outperformance against the S&P 500. Specialist Chemical Maker – Touch of electric cars, 5G, artificial intelligence and smartphones It recently posted a 41% earnings per share gain for the fourth quarter.
Stellantis rose 2.6% to 17.56, hitting 17.31 entry points into the base of the cup. Stellantis is the result of the recent merger between Fiat Chrysler and French Peugeot. STLA’s stock is delayed stronghold (F), General Motors (GM) And especially Volkswagen (VWAGY), But earnings are recovering strongly and the RS line is at a new high.
Ternium shares rose 3.9% to 35.43, above 34.09 Kop, a key buy point in heavy volume. TX stock originally broke out on March 2 and then pulled back a few days later. Shares just closed in a buy range on Monday, but fell below the entry on Tuesday morning before rebounding.
CarMax stock reached 132 during the day but turned lower, dropping 0.3% at 128.82, still slightly above 128.68 buy points. KMX shares jumped 4.85% to 129.17 on Monday. The RS line is at the highest level. CarMax profits have rebounded as a shortage of new cars supply increases used car sales and prices. The used-car giant has also achieved a major boost in digital sales during the pandemic.
Microsoft shares advanced 2.8% to 233.78 points, surpassing 232.96 buy points. Tech giant Dow Jones has also recovered its 50-day and 21-day moving averages, as well as breaking out of a short downtrend.
In many ways, the MSFT stock chart of the past few weeks looks very similar to the S&P 500. Buying Microsoft stocks near the 50-day line makes sense as a long-term leader. Investors can also start a stake here, then fill in a position if and when the MSFT stock completes and exits a fresh consolidation starting from an all-time high on Feb 16 at 246.13. The RS streak of Microsoft stocks has been delayed since July and has fallen off its highs in early February, but has remained better than many tech names in the past few weeks.
Stock market rise analysis
It is difficult to analyze the current stock market rally because the major indices are so divided. It is normal to see one indicator leading to an upward or downward trend, but they are usually in the same direction. But this has not been the pattern in recent weeks.
On Tuesday, the stock market rebounded across the board. The Nasdaq led a strong recovery, as shares of Tesla and several speculative growth names rallied after several days of falling. The S&P 500 index rallied strongly while the Dow Jones index made slight gains after strong intraday gains.
But the Nasdaq and many hot stocks like Nvidia are still below the 50 day lines. The best one-day gains in history have all been in bear markets, so one big day for developing stocks in a correction doesn’t mean much in and of itself.
Tuesday marks the third day of the stock market rally attempt. Especially for the Nasdaq and growth sectors, a Follow-up day To confirm the new height is the key. Follow up can come any day now. Strong Nasdaq gains from these levels could also push the technology-heavy index to or above the 50-day and 21-day lines.
The Dow Jones Index, despite its lackluster ending, is trading at record highs. Many real economy stocks have entered buying areas. To be honest, if the Dow and the cyclical sectors materialize the stock market, IBD won’t announce a correction last week. With the Dow and related sectors climbing to new highs, it’s easy to say that this major part of the market is in an uptrend – and has never been in a corrective state.
The S&P 500 also appears to be healthier, as it has regained key levels. So does Russell 2000.
What are you doing now?
Work on your stock watchlists, with an emphasis on relative strength. Among these, pay close attention to stocks that are formed near the points of purchase.
Investors can choose to take some small trades in stocks that break out or flash other buy signals. Aside from some names like Microsoft, they will generally be true economic names. For growth stocks, wait a day to continue. Even so, many stocks such as Nio, Zoom, or Tesla may take weeks or longer to generate new buying opportunities.
This is an important day to read The Big Picture To understand the market trend.
Please follow Ed Carson on Twitter at Embed a Tweet Stock market updates and more.
You may also like: