Dow Jones Slides As Yields Dive; Tesla Stock Extends Losses, While Apple In New Buy Zone

The Dow Jones Industrial Average slid 140 points Wednesday, as the 10-year Treasury yield dived to its lowest level since February. Tesla stock extended losses after Tuesday’s sell-off, while tech giants Amazon, Apple and Shopify are in new buy zones.


Among the Dow Jones leaders, Apple (AAPL) rose 1.6% Wednesday, while Microsoft (MSFT) moved up 0.6% in today’s stock market. Microsoft is out of buy range.

Tesla (TSLA) reversed lower Wednesday, extending losses following Tuesday’s 2.85% sell-off.

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

Microsoft and Shopify are IBD Leaderboard stocks.

Dow Jones Today: 10-Year Treasury Yield Dives

The Dow Jones Industrial Average fell 0.1% Wednesday after paring losses. The S&P 500 fell 0.1%, while the tech-heavy Nasdaq composite lost 0.4% in morning trade.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 34497.86 -79.51 -0.23
S&P 500 (0S&P5) 4340.88 -2.66 -0.06
Nasdaq (0NDQC ) 14639.39 -24.25 -0.17
Russell 2000 (IWM) 222.64 -3.22 -1.43
IBD 50 (FFTY) 44.01 -0.72 -1.61
Last Update: 10:38 AM ET 7/7/2021

The 10-year Treasury yield tumbled as low as 1.30% Wednesday morning. The 10-year Treasury yield is at its lowest level since mid-February. The Fed minutes from the June meeting will be released today, with policymakers likely providing more details about when they’ll officially start talking about tapering bond buys.

Among exchange traded funds, the Innovator IBD 50 (FFTY) traded down 0.7% Wednesday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) moved up 0.3%. Meanwhile, the SPDR S&P 500 ETF (SPY) gained 0.1%.

Stock Market Rally

The Nasdaq hit more record highs Wednesday morning, while the S&P 500 eyed all-time highs after touching a record before backing off on Tuesday. The Dow Jones Industrial Average is again trying to hold support around its 50-day moving average line.

Tuesday’s Big Picture column commented, “The S&P 500 broke a seven-day win streak after broad selling hit the stock market Tuesday, although indexes rebounded and showed they are not ready to roll over from record highs. Leading stocks were mostly solid.”

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

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Dow Jones Stocks: Apple

Dow Jones leader Apple rallied more than 1.5% Wednesday. Apple stock is trading at the top of the 5% buy zone past a 137.17 entry in a cup base, according to IBD MarketSmith chart analysis.

Apple stock looked to extend a win streak to seven sessions and is just 2% off its all-time highs.

Stocks To Buy And Watch: Amazon, Shopify

Tech giant moved beyond the 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 rallied 0.9% Wednesday 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.

New IBD Leaderboard stock Shopify is breaking out past a 1,552.33 buy point in a cup with handle, according to IBD MarketSmith chart analysis. The 5% buy zone goes up to 1,629.95, so the stock is squarely in buy range. Shares rallied 1.5% in morning trade.

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 reversed about 1% lower Wednesday, extending losses following Tuesday’s sell-off. The EV giant bullishly reclaimed its key 50-day line in recent weeks and continues to move up the right side of a new base.

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: Microsoft

Among the top Dow Jones stocks, 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 gained 0.6% Wednesday 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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