The stock market is lower as the performance jumps benchmarks; IBD 50 Stock Triggers Sell Sign

Stock market indices fell to session lows at noon when yields on benchmark Treasury bonds rose again. Several technology stocks flashed sell signals.


The Nasdaq lost 1.7% after technology stocks broke away from Monday’s rally. The S&P 500 turned to a loss of 0.6%. The ETF Invesco QQQ Trust (QQQ) is down 1.5% and is meeting resistance around the 200-day moving average.

The Dow Jones industrial average fell only 0.1%. Procter & Gamble (PG) rose 1.5% and returned above the 50-day moving average as stocks form a flat base. Walmart (WMT) is above the buying point of 152.67, although the previous entry could be seen at 146.73.

Volume rose on the NYSE and fell on the Nasdaq compared to the same time on Monday.

A review of the US stock market today

Index The symbol Price Profit / loss % change
Dow Jones (0DJIA) 34876,61 -45.27 -0.13
S&P 500 (0S & P5) 4556.07 -26.57 -0.58
Nasdaq (0NDQC) 14285.31 -247.24 -1.70
Russell 2000 (IWM) 205.14 -2.77 -1.33
IBD 50 (FFTY) 38.24 -1.01 -2.57
Last updated: 11:50 ET 05.04.2022

Profitability of treasury jumps jumps after economic data

Yields on 10-year Treasury bonds jumped 13 basis points to 2.54%.

Growth followed bullish readings in the services sector, while inflation and interest rates showed no signs of declining.

The S&P US Services Purchasing Managers Index showed the biggest growth this year. The services sector rose to 58 in March from 56.5 in February, although it was below the initial estimate of 58.9.

The resumption of activity in the services sector leaves the door open for the Fed to more aggressively tighten monetary policy starting next month, said BMO Capital Markets economist Jennifer Lee.

Chris Williamson, chief business economist at S&P Global, said in a report that “business activity in the broad services sector has been boosted by easing of anti-virus restrictions in March, restoring a strong momentum after a slowdown caused by omicron seen earlier this year.”

Demand for services is growing so fast that the survey has seen the biggest increase in the number of backlogs since the survey began in 2009, Williamson added. Due to rising prices for energy and other raw materials, as well as rising wages, prices for services are rising at an unprecedented rate. So consumer price inflation is likely to accelerate even more as we approach spring, ”he said.

In another report on services, the Institute of Supply Management’s index for March was 58.3, which is in line with forecasts. This is an improvement from 56.5 in the previous month in an index that surveys more than 375 companies providing services in 16 industries.

Russia faces new sanctions

Another concern for the stock market is a set of new sanctions against Russia, which the European Union is seeking. This could include Russian energy exports.

“If leaving the Russians without the Big Mac, Starbucks and Nike shoes was not effective in preventing Putin from ending the war in Ukraine, the ban on Russian energy imports should matter,” said Ipek Azkardeskaya, a senior analyst at Swissquote Bank. said in a note. “However, it will also mean a serious energy crisis in Europe and a major blow to economic development.”

U.S. oil slowed growth to 0.3% to $ 103.62 a barrel at noon.

Twitter (TWTR) reduced the gain to 5%. This was reported by the company of social networks Tesla (TSLA) CEO Elon Musk will join the board of directors. The news came after it became known on Monday that Musk had acquired a 9.2% stake in Twitter. While Musk is on the board, he cannot own more than 14.9% of Twitter’s common stock, the company said in a statement.

Shares of Twitter rose 27% on Monday after the disclosure of Mask’s property, the biggest gain in a single day in the company’s history. According to Dow Jones Market Data, the volume also became an all-time record. Shares of Twitter today rose above the 200-day moving average for the first time since October 22nd.

Tesla shares fell 2.3% as they operate on a cup basis with a buying point of 1208.10.

Acquisition of the digital world (DWAC) is down 14.5% and is on track for its eighth consecutive decline. Digital World is a SPAC that plans to make public Donald Trump’s social media campaign Truth Social, which is a competitor of Twitter. This week, the SPAC fell more than 23% after falling 11.5% last week.

Carnival Cruise, Teva is among the engines of the stock market

Carnival Cruise Line (CCL) cut gains to 3% at noon after the company reported a record number of bookings for the week of March 28 to April 3. Orders for the week exceeded the previous seven-day record by double digits, according to a Carnival press release.

The cruise company also said 22 of its 23 ships were back in service after the industry was hit hard by a pandemic. Shares have passed above the 50-day moving average, but are still consolidating below the 200-day line.

Teva Pharmaceutical (TEVA) erased all of its morning gains by 5.4%. Barclays upgraded the generics manufacturer to overweight with equal weight and raised the target price to 13 out of 11. Teva shares are lowering resistance by about 10.25.

The ETF Innovator IBD 50 (FFTY) fell 2.6% as many of its technology stocks fell 2% to 4%. Axcelis Technologies (ACSL) lost nearly 9% in heavy trading, falling further below the buying point of the 75.10 breakout on March 17th. Axcelis fell more than 7% below entry, which is a sell signal. He also broke below the 50-day line.

Alpha and Omega semiconductor (AOSL) has sunk below the 50-day line. It is now 17% below the 59.48 buying point. This is also a sales situation.

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