Dow Jones Dives As Treasury Yields Tumble; Tesla Stock Skids Despite Strong China Sales

The Dow Jones Industrial Average dived over 500 points Thursday, as the 10-year Treasury yield continued to tumble. Tesla stock skidded nearly 3% despite strong China sales, while the company unveiled a cheaper version of its made-in China Model Y crossover.


Among the Dow Jones leaders, Apple (AAPL) sold off 1.8% Thursday, while Microsoft (MSFT) moved down 1% in today’s stock market. Nike (NKE) backed off from new highs following a June 25 breakaway gap.

Tesla (TSLA) threatened to slide for a third consecutive day, dropping more than 2%.

Among the top stocks to buy and watch, Apple, (AMZN), Burlington Stores (BURL) and Shopify (SHOP) are in or near new buy zones.

Microsoft and Shopify are IBD Leaderboard stocks. Burlington Stores was Wednesday’s IBD Stock Of The Day.

Dow Jones Today: 10-Year Treasury Yield Slides Again

The Dow Jones Industrial Average dived 1.5% Thursday morning, while the S&P 500 declined 1.4%. The tech-heavy Nasdaq composite lost 1.45% in morning trade.

U.S. Stock Market Today Overview

IndexSymbolPriceGain/Loss% Change
Dow Jones(0DJIA)34199.38-482.41-1.39
S&P 500(0S&P5)4298.06-60.07-1.38
Nasdaq(0NDQC )14468.34-196.72-1.34
Russell 2000 (IWM)220.62-3.14-1.40
IBD 50 (FFTY)42.69-1.13-2.58
Last Update: 10:36 AM ET 7/8/2021

The 10-year Treasury yield tumbled as low as 1.26% Thursday morning before paring some losses. The 10-year Treasury yield traded around 1.27% in morning trade and is at its lowest level since mid-February.

Among exchange traded funds, the Innovator IBD 50 (FFTY) trimmed early losses to 2.7% Thursday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) moved down 1.2%. Meanwhile, the SPDR S&P 500 ETF (SPY) lost 1.3%.

Stock Market Rally

The Nasdaq backed off from Wednesday’s record highs, while the S&P 500 remained just off its own all-time highs. The Dow Jones Industrial Average dropped narrowly below support at its 50-day moving average line.

Wednesday’s Big Picture column commented, “The stock market didn’t like it when the 10-year yield jumped to 1.76% in late March. Now, the stock market is worried about plunging yields and what that means about the economic recovery. For now, the bond market is saying it’s not worried about persistent inflation. Instead, it’s worrying about an economic recovery that may not be as robust as expected.”

For more stock market commentary, check out IBD’s The Big Picture.

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Dow Jones Stocks: Nike

Dow Jones leader Nike dropped 0.6% Thursday. Nike stock is extended past a consolidation’s 148.05 buy point. The 5% buy zone goes up to 155.45, according to IBD MarketSmith chart analysis.

Nike looked to snap a four-day win streak, but remains just off its all-time highs. Shares surged past the entry on June 25 when the company blew away fiscal fourth-quarter earnings estimates.

Stocks To Buy And Watch: Amazon, Burlington, Shopify

Tech giant is back in buy range past a cup with handle’s 3,524.96 buy point following Tuesday’s strong breakout move. The buy zone topped out at 3,701.21. Shares lost 1.7% Thursday morning.

According to IBD Stock Checkup, AMZN stock shows a solid 92 out of a perfect 99 IBD Composite Rating. The IBD Composite Rating easily identifies stocks with a blend of strong fundamental and technical characteristics.

Wednesday’s IBD Stock Of The Day, Burlington Stores, remains near a 339.38 buy point in a cup base. Shares fell 2% Thursday morning and are about 5% away from the new entry.

New IBD Leaderboard stock Shopify is trying to break out past a 1,552.33 buy point in a cup with handle, according to IBD MarketSmith chart analysis. Shares dropped nearly 3% Thursday morning following Wednesday’s downside reversal.

Per Leaderboard analysis, “The handle formed after the stock formed a long cup base pattern over the space of 18 weeks. The relative strength line has been moving sideways during the handle consolidation. An upward spike will be constructive going forward.”

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Tesla Stock

Tesla stock halved its losses to 1.5% Thursday, still threatening to slide for a third straight session. Tesla skidded 2.85% Tuesday and another 2.3% Wednesday. The EV giant is testing support around its key 50- and 200-day moving averages. Sharp breaks of these support levels would be bearish for the stock’s prospects.

Ahead of the market open Thursday, The China Passenger Car Association reported Tesla China sales were strong in June, while U.S. auto giant also unveiled a cheaper version of its made-in-China Model Y crossover. The CPCA said Thursday that Tesla sold 33,155 EVs in June, including 21,532 locally made Model 3 sedans and 11,623 Model Y crossovers. The overall figure includes 28,138 local sales and 5,017 exports.

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, Dow Jones leader Apple sold off over 2% Thursday. Apple stock is trading in the 5% buy zone past a 137.17 entry in a cup base, according to IBD MarketSmith chart analysis.

Apple stock looked to snap a seven-day win streak.

Microsoft is slightly extended past the buy range above a new cup base’s 263.29 buy point, according to IBD MarketSmith chart analysis.

Shares declined 1% Thursday and are just out of the buy zone. The 5% buy zone goes up to 276.45.

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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