The stock fell to the starting bell, then quickly became mixed on Wednesday, as the market felt the direction after Tuesday’s slide. Netflix collapsed, pulling on early transactions after reporting a disappointing increase in subscribers. A handful of stocks in the medical sector have shown strength, with Edwards Lifesciences and Intuitive Surgical growing in earnings. Nike led the Dow Jones today, recovering from a fall on Tuesday.
X
The Dow Jones industrial average opened below, then struggled to cut earnings as NIKE (NO) went up and Johnson & Johnson (JNJ) withdrew after Tuesday’s rally. The S&P 500 also recovered to trade flat. Nasdaq Composite fell 0.3% today in the stock market, hurt by NetflixDecline (NFLX).
Netflix fell hardest on Nasdaq and S&P 500 shares. Services for the heavy oil industry Halliburton (HAL) disappointed more than 4%, home builder NVR (NVR) fell 3.4% after first quarter earnings reports.
Among manufacturers of medical products, Edwards Lifesciences (EW) grew 4.7% higher after solid growth in first-quarter sales and earnings and raised second-quarter guidance above analysts’ estimates. Shares ended Tuesday in a buy range over a two-bottomed basic buy point at 88.30, coming out of that buy range in early trading.
Innovator of medical robotics Intuitive surgery (ISRG) also rose in earnings news, up 6.7%, falling from a double base. The stock increased beyond the purchase range of 812.89 points of purchase.
Stock IBD 50 ASML Holdings (ASML) grew by more than 3% more after reporting strong performance in the first quarter.
Elsewhere, based in Switzerland TE Connectivity (TEL) rose more than 2% on gains, rising to a 136.11 buy point. Citrix Systems (CTXS) rose 4.4% to 144.08.
Dow Jones Today: UnitedHealth, Verizon
Nike today gained an early advantage over the Dow Jones, up 1.1%. A 4.1% dip on Tuesday left support for stock testing at its 200-day moving average.
UnitedHealth Group (UNH) rose 0.5% following a buyout upgrade from Argus Research. The report noted a strong increase in the number of members in the company’s managed care business and a healthy delay in its Optum operation, as well as the return on investment, an industry leader. The report set the stock price target at 450, about 14% higher than the shares closed on Tuesday.
Verizon (VZ) fell 0.2% as investors entered first quarter results.
Johnson & Johnson shares fell 0.9% a day after gaining 2.3% in earnings and news that the Covid-19 vaccine was developed by the partner BioNTech (BNTX) would be launched in Europe, but with a warning label attached. Vaccine doses were discontinued after a small number of recipients developed life-threatening blood clots. Following the study, the European Medicines Agency determined that the benefits of the vaccine far outweighed the risks and that coagulation should be considered as “very rare side effects of the vaccine”.
Also Tuesday, the U.S. Food and Drug Administration shut down operations at an emerging biosystem plant that manufactures the J&J vaccine after contamination destroyed millions of doses of both J&J and AstraZeneca (AZN) vaccines.
Small flat caps like Welbilt, Owens and Minor Rally
Among small capitals, the Vanguard Russell 2000 ETFVTWO index fund accumulated 0.7% in early shares.
At the top of Russell 2000, manufacturer of food service equipment Welbilt (WBT) rose 23% after heavy industry Middleby (MIDD) has agreed to buy the equipment in New Port Richey, Florida, in a $ 2.93 billion deal. Middleby shares fell 2.6%.
Manufacturer of personal protective equipment Owens & Minor (IMO) rose 2.7%, positioning the stock as a possible buyback in return for its 10-week moving average. Owens & Minor, the top stock in the wholesale drug / consumables industry group, is one of five manufacturers to have received contracts to supply N95 masks and other Covid-related protective equipment.
Netflix earnings
Netflix earnings exceeded viewings, but subscriber growth of 3.98 million fell sharply. The FANG stock sees only 1 million new streaming customers in the second quarter. Netflix faces post-pandemic environment amid growing competition Disney (DIS) and its Disney + streaming service. Management said it will launch a $ 5 billion buyback program this quarter.
NFLX fell more than 8% early Wednesday. This signaled a movement below the 50 and 200 day lines. A 0.9% drop on Tuesday left the shares at 549.57, less than 2% below a 559.85 buy point from a small check on a weekly chart.
Bitcoin Bobs, CoinBase keeps
Bitcoin prices were steady, rising between $ 55,000 and $ 56,000 early Wednesday, according to CoinDesk. The cryptocurrency hit a high of more than $ 64,800 a week ago Coinbase Global (CURRENCY) IPO. Shares fell below $ 54,000 on Sunday, but Bitcoin remains at over 90%, after starting the year at just over $ 29,000.
Coinbase cryptocurrency exchanges traded a fraction higher after closing at 320.82 on Tuesday. Coinbase IPOs at an initial price of 250. CAN SLIM rules recommend that you do not switch to IPOs too soon, amid all the initial speculation and emotion. It is better to sit and follow the chart of the new stock. Waiting for the formation and exit of an IPO base helps to limit the risk of disadvantage.
Nasdaq Vs. Dow Jones Today: Tighter Tolerances
A two-day withdrawal left the Nasdaq Composite hovering just above the 21-day exponential moving average and set a support test. The S&P 500 and the Dow Jones industrial average fell short of their record highs. So far, the Dow is up 10.5% and the S&P 500 is up 10.1%, while the Nasdaq is up 6.3%.
For the Nasdaq, a break in support for its 21-day line – which is also the March highs – would indicate a possible 50-day / 10-week moving average. The index is looking for a certain level of support to consolidate, before taking a new run at 14,000.
For a more detailed analysis of the current market and its state, study the big picture.
The Nasdaq Invesco QQQ Trust (QQQ) follow-up ETF fell 0.7% on Tuesday, falling slightly below its 338.29 point of purchase, but maintaining support on its 21-day line. There was some clear deterioration in low-capacity indicators, as Russell 2000 fell 2% below and the S&P Smallcap 600 hit both the 21- and 50-day support lines.
The stock market remains in a confirmed upward trend, but the market is increasingly volatile. This uncertainty may resolve or worsen as the March reporting season gains momentum. For now, as mentioned in the early update of the Ed Carson Stock Exchange, investors should turn to cash as they run out of stocks. It is a good time to strengthen stop-loss tolerances and take profits where possible, especially in stocks with overdue income.
Vital market signs: oil, copper, bonds
The goods were mixed after losing on Tuesday.
West Texas Intermediate Oil earned 2.8%, to below $ 61 a barrel. The WTI rose briefly above $ 64 on Tuesday, the highest level since mid-March and rose 10% from the low in late March. Prices reversed to $ 62.44. Copper added 0.6% to trade over $ 4.24 per pound. Prices hit a 10-year high of $ 4.30 on Feb. 24. Copper and oil prices are important indicators of economic sentiment and drive mining and energy stocks.
ETF strategy on the stock market and how to invest in the current upward trend
Bond yields fluctuated, and the 10-year yield rose to 1.57%, after settling at 1.56% on Tuesday, according to CBOE data. Yields last week saw the worst week in July, falling to 1.53% on Friday. They surrounded pre-pandemic levels at the end of March, rising to almost 1.76% – the highest level since January 2020. Yields had started 2020 at around 1.8%, down from about 2.7% a year earlier. early then fell in August, recording lows around 0.5%.
Find Alan R. Elliott on Twitter @IBD_Aelliott
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