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Dow Jumps 300 Points, While Tech Stocks Soar As Yields Fall; Apple, Tesla Surge

The Dow Jones Industrial Average rallied more than 300 points Tuesday, while tech stocks surged as Treasury yields fell from Monday’s high. Apple and Tesla stock snapped back with sharp gains in morning trade, while Bitcoin jumped.




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Among the Dow Jones leaders, Apple (AAPL) surged 4% Tuesday, while Microsoft (MSFT) moved up about 3% in today’s stock market. Disney (DIS) advanced out of buy range Monday, while Visa (V) remains in buy range above a new buy point.

Tesla (TSLA) surged 11% Tuesday, looking to claw back some of Monday’s 5.8% dive. After the close Monday, Stitch Fix (SFIX) reported mixed fiscal Q2 results.

Among the top stocks to watch, Alphabet (GOOGL), Polaris (PII) and Westlake Chemical (WLK) are holding up well in the current stock market correction.

Microsoft, Polaris and Tesla are IBD Leaderboard stocks. Alphabet was featured in this week’s Stocks Near A Buy Zone column. Westlake was Monday’s IBD Stock Of The Day.

Dow Jones Today: Yields Fall

Early Tuesday, the Dow Jones Industrial Average rallied 0.9%, while the S&P 500 moved up 1.8%. The tech-heavy Nasdaq composite soared 3.2%, on pace to recover from Monday’s 2.4% sell-off.

The 10-year Treasury yield advanced as high as 1.617% Monday, according to MarketWatch, before closing at 1.596%. The 10-year yield eased to about 1.533% Tuesday morning.

Among exchange traded funds, the Innovator IBD 50 (FFTY) traded up 4% Tuesday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) rose 3.5%. Meanwhile, the SPDR S&P 500 ETF (SPY) moved up 1.5%.

Stock Market Correction

On March 4, the major stock indexes were rocked with heavy selling, while top growth stocks also crumbled. The Nasdaq dived to close at its lowest level since Jan. 4, turning negative for the year. The tech-heavy composite is ended Monday down 2.2% in 2021 after rallying as much as 10% from Jan. 1 to its Feb. 16 record high.

IBD’s market outlook was downgraded to “market in correction” on March 4. During such periods of severe stock market weakness, investors should be lightly invested — or even in 100% cash — until a follow-through day. Follow-throughs signal a new potential market uptrend and give the green light to start buying stocks again. Currently, it is day three of a new rally attempt following Friday’s rebound.

Use the downtime as a chance to take a mental break; however, don’t tune out. Be on watch for the next leaders to emerge. One of the best ways to identify the next cycle of leading stocks during stock market corrections is to use the relative strength line. The RS line measures a stock’s price performance vs. the S&P 500. If the stock is outperforming the broader market, the RS line angles upward. If a stock is performing worse than the broad market, then the line will point lower.

Monday’s Big Picture commented, “Friday’s positive reversal offered hope of a bottom in the stock market. The Nasdaq fought back from a 2.6% loss to close 1.5% higher that day. But the bullish momentum did not carry over into Monday. In fact, a late-fading market is indicative of underlying weakness.” Check out the IBD’s The Big Picture for more stock market commentary.


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Bitcoin Price

Bitcoin rallied about 5% Tuesday, topping $54,000. The price of Bitcoin traded around $54,400 in morning action, according to CoinDesk.

The price of Bitcoin hit an all-time high on Feb. 21, topping out at $58,332.

The Grayscale Bitcoin Trust (GBTC) ETF looked to extend a win streak to three sessions Tuesday, as the Bitcoin-tracking ETF continues to rally from its 50-day support level. GBTC advanced 7.2% Tuesday morning.

Dow Jones Stocks: Disney, Visa

Inside the Dow Jones Industrial Average, Disney stock slid over 1% Tuesday morning. Shares on Monday surged over 6% after California signaled that Disneyland and California Adventure can reopen April 1. That moved the stock out of the buy zone Monday past a 183.50 buy point in a flat base.

Visa stock is climbed past a buy range above a 211.69 buy point in a cup with handle following a Feb. 23 breakout, according to IBD MarketSmith chart analysis. The 5% buy zone goes up to 222.27.

Shares gained 1.1% Tuesday, moving just beyond the buy range.

Stocks To Watch: Alphabet, Polaris, Westlake

FANG stock leader Alphabet is holding up well in the face of the stock market’s recent weakness. Shares remain extended from a 1,843.93 buy point in a flat base, and are about 2% away from a 2,145.24 entry in a three-weeks-tight pattern.

Shares looked to rebound from Monday’s 4.3% tumble, rallying more than 2% in morning trade.

Polaris broke out past a 129.10 buy point in a flat base Friday with a 5.7% surge. Shares are in the 5% buy zone that tops out at 135.56. Polaris stock moved up 0.8% Tuesday.

According to IBD Stock CheckupPolaris stock shows a solid 90 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.

Monday’s IBD Stock Of The Day, Westlake Chemical, cleared a 90.46 buy point amid Tuesday’s 1% advance. Shares ended in the 5% buy zone that tops out at 94.98. The stock tacked on 0.1% Tuesday morning.

Westlake was added to IBD Leaderboard Monday. Per Leaderboard commentary, “The stock’s latest base is second stage, and the relative strength line is making new highs as shares break out. Both are positive elements for the chart.”

Stock Market Earnings: Stitch Fix

After the close Monday, Stitch Fix reported a loss of 20 cents per share, beating estimates. But sales missed consensus targets. The company reported revenue of $504.1 million, below analyst estimates for sales of $512.2 million.

Stitch Fix shares plunged more than 26% in morning trade Tuesday. The stock ended Monday below its 50-day line, about 40% off its 52-week high.


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Tesla Stock

Tesla stock looked to snap a five-day losing streak Tuesday, racing more than 11% higher in morning trade. Shares could be forming a new base, but it’s too early to identify a new entry.

On Feb. 22, the EV leader broke down through its key 10-week moving average line, a critical support level.

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. Shares are about 37% off that all-time high.

Dow Jones Leaders: Apple, Microsoft

Among the top Dow Jones stocks, Apple rallied 4% Tuesday following Monday’s 4.2% tumble. Apple stock remains below its 10-week line, but a strong rebound back above the level would be bullish for the stock’s prospects.

On Feb. 18, Apple stock triggered the 7%-8% loss-cutting sell rule when it fell more than 7% below its 138.89 buy point in a cup with handle.

Meanwhile, Microsoft rose about 3% Tuesday, looking to snap back from Monday’s 1.8% fall. The stock remains below its 232.96 buy point and dropped back below its 50-day line.

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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