The Dow Jones Industrial Average briefly fell more than 300 points Thursday, as Bitcoin crossed above $52,000. Tesla stock skidded on announced price cuts for its base Model 3 and Model Y. Dow Jones leader Walmart dived on earnings, while Twilio soared.
Among the Dow Jones leaders, Apple (AAPL) was down nearly 2%, while Microsoft (MSFT) declined over 1% in today’s stock market. Tuesday’s IBD Stock Of The Day, Caterpillar (CAT), is in a buy range above an entry, while Nike (NKE) is approaching a new buy point.
Dow Jones Today
On Thursday, the Dow Jones Industrial Average fell 0.8%, while the S&P 500 declined 0.85%. The tech-heavy Nasdaq composite sold off 1.2% in midday trade.
Stock Market Rally
Looking back at the current uptrend, November was a key month for the stock market. IBD’s The Big Picture flagged the new uptrend following the market’s bullish follow-through day on Nov. 4. Meanwhile, the middle of February has the Dow Jones Industrial Average, Nasdaq and S&P 500 trading just off record highs.
Wednesday’s Big Picture commented, “With the market pulling back from record highs, investors should be prepared to play some defense. Despite this week’s losses, the Nasdaq still carries a cushion above its critical 21-day exponential moving average.
Due to the recent strength, investors can remain in an offensive stance, with an understanding that there are still good reasons for caution. Look for stocks that are breaking out above new buy points, like Nvidia.
Focus on stocks that showed strong relative strength during the recent weakness. They could be some of the market’s leaders if the indexes are able to continue their record-setting ways.
The price of Bitcoin eased lower Thursday. Late Wednesday, Bitcoin reached as high as $52,621. Bitcoin traded at about $52,100 in morning trade, according to CoinDesk.
The Grayscale Bitcoin Trust (GBTC) fell 0.2% and is just off new highs.
Dow Jones Stocks: Caterpillar, Nike
Inside the Dow Jones Industrial Average, Caterpillar is in buy range above a 200.27 buy point in a short consolidation. Shares fell 1.4% Thursday morning.
CAT shares broke out above the buy point on Tuesday. The 5% buy zone goes up to 210.28.
Elsewhere, Nike is rapidly approaching a 148.05 buy point in a flat base, according to IBD MarketSmith chart analysis. Shares slipped 0.5% in morning trade.
Software leader Twilio soared over 8% Thursday after the company’s earnings and revenue for the December quarter handily beat expectations.
Shares hit new highs and are sharply extended from a 333.72 buy point in a cup with handle.
Early Thursday, Dow Jones stock Walmart reported mixed Q4 earnings results. Walmart earnings came in at $1.39 a share, while revenue climbed to $152.08 billion.
Walmart stock dived 6% before trimming losses. Shares are nearing their long-term 200-day line.
Stocks To Watch: EQT, Veeva
Wednesday’s IBD Stock Of The Day, natural gas producer EQT, broke out past an 18.76 buy point in a cup with handle Wednesday. The 5% buy zone goes up to 19.70, so the stock is in buy range. Shares slid 3.7% in early trade.
According to IBD Stock Checkup, EQT stock shows a weak 49 out of a perfect 99 IBD Composite Rating. The IBD Composite Rating helps investors easily measure the quality of a stock’s fundamental and technical metrics.
Software leader Veeva Systems remains in the 5% buy zone past a 314.09 buy point in a cup base. The health sciences software firm lost 1.2% Thursday morning.
The stock was featured in Wednesday’s IBD 50 Stocks To Watch.
Tesla stock threatened to give back Wednesday’s 0.2% rise, skidding about 1% Thursday. The electric-auto leader cut the price of its Model 3 Standard Range Plus to $36,990 from $37,990, while the Model Y SR+ price is now $39,990, down from $41,990.
Shares are looking to rebound from their 10-week moving average line, a critical support level. A strong move from this key support level would signal a new buy area.
On Jan. 25, Tesla stock hit a record high at 900.40, after climbing as much as 93% from a 466 buy point in a cup with handle.
Dow Jones Leaders: Apple, Microsoft
Among the top Dow Jones stocks, Apple moved down 1.7% Thursday, and remains below its 138.89 buy point in a cup with handle. Shares gave up the entry on Jan. 28. Similar to Tesla, Apple stock is testing its 10-week line.
Meanwhile, Microsoft fell 1% Thursday morning. Shares of the software giant broke out past a 232.96 buy point in recent sessions. The stock is at the top of the 5% buy zone that goes up to 244.61.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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