The Dow Jones Industrial Average was mostly unchanged near midday Tuesday ahead of President Biden meeting with Wall Street CEOs to discuss his $1.9 trillion coronavirus stimulus plan. Apple (AAPL) fell modestly and Microsoft (MSFT) edged higher in the Dow Jones today, while artificial intelligence stock C3.ai (AI) passed a buy point.
Among EV stocks, Tesla (TSLA) dipped after coming into the crosshairs of Chinese regulators, while rival Nio (NIO) spiked. General Motors (GM) also slipped. Reddit stock GameStop (GME) continued to plunge.
Wall Street Comes To President Biden
President Biden and Treasury Secretary Janet Yellen are getting set to meet with some of the most powerful executives on Wall Street to go over the Covid-19 stimulus package. Among those attending are JPMorgan (JPM) CEO Jamie Dimon and Walmart (WMT) chief Doug McMillon.
The White House has said the President and the business leaders will group will review the “critical need” for the massive spending package.
Larry Summers, who was top economic adviser to former President Obama, has warned the package is too big and could overheat the economy. Despite this, Democrats are looking to force it through Congress.
Nasdaq, S&P 500 Mixed
The S&P 500 gave up around 0.2% as stocks came under pressure. Clothing stock Hanesbrands (HBI) fared best, spiking more than 20%. Payments stock Jack Henry (JKHY), which slipped almost 10%, and Take-Two Interactive (TTWO) were the biggest laggards.
U.S. Stock Market Today Overview
Last Update: 11:48 AM ET 2/9/2021
Volume was mixed compared to the same time Monday. It rose around 14% on the Nasdaq and fell 5% on the NYSE.
It was a tough session for S&P 500 sectors, with the majority slipping lower. Communications services and technology were leading those in the green.
Small caps were also struggling as the bears battled the bulls for supremacy. The Russell 2000 slipped around 0.2%.
Growth stocks were again standing out, with the Innovator IBD 50 ETF (FFTY) up 0.6%. 1-800-Flowers (FLWS) was the top IBD 50 stock, rising more than 8%. However education stock Chegg (CHGG) gave up early gains to fall more than 0.5%.
Apple Stock Rises, Dow Jones Falls
The Dow Jones Industrial Average was also struggling, slipping around 0.1%. A majority of components were having a down day.
Apple stock was one of the better performers, but ceded gains as it fell around 0.2%. Microsoft stock fared better, rising to the top of a buy zone as it gained around 0.4%. Its consolidation pattern entry point is 232.96.
Aerospace giant Boeing (BA) was leading after climbing 2%. But Walt Disney (DIS), which passed a buy point Monday, was the biggest laggard after giving up more than 1%. Disney reports earnings Thursday after the close.
Tesla Stock Falls As Chinese Regulators Pounce
IBD Leaderboard stock Tesla slipped almost 2% after coming under scrutiny from Chinese regulators.
The firm has been summoned by five Chinese regulatory agencies over its Shanghai-made Model 3 cars, a statement released Monday by the State Administration for Market Regulation said. They are concerned about problems including “abnormal acceleration” and “battery fires.”
Tesla stock still has a best-possible IBD Composite Rating of 99, helped by stellar 12-month price performance.
Chinese rival Nio rallied meanwhile, gaining more than 3%. Nio stock is trying to clear a trend line touching the highs since Jan. 11.
A previous breakout from a cup base with a 57.30 buy point failed because it erased a double-digit gain from the buy point.
Meanwhile auto giant General Motors slipped just over 1%. It previously broke out from a cup base on positive EV news, and is now in profit-taking zone. The buy point was 46.81.
AI Stock Breaks Out
IPO stock C3.ai broke out after crossing a buy point of 160.53. Its relative strength line is spiking, which is a positive sign
The stock holds a lackluster IBD Composite Rating of 65, hurt by the fact the company isn’t profitable yet. AI stock debuted in December at 42 a share.
The California firm provides software-as-a-service that enables deployment of enterprise-scale AI applications.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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