The stock market declined as benchmark yields increased; IBD sells 50 stock triggers signal

Stock market indices fell to a low at noon as benchmark treasury yields rose again. A few tech stocks flashed sales signals.


The Nasdaq stock lost 1.7% as technology stocks came out of the rally on Monday. The S&P 500 is down 0.6%. The Invesco QQQ Trust (QQQ) ETF is down 1.5% and is facing resistance around the 200-day moving average.

The Dow Jones Industrial Average is down 0.1%. Procter & Gamble (PG) rose 1.5% and returned above the 50-day moving average as the stock formed a flat base. Walmart (WMT) is higher than the buying point of 152.67, although the previous entry can be seen at 146.73.

Noise increased on the NYSE and fell on the Nasdaq compared to the same time on Monday.

Today’s overview of the US stock market

Index Logo Price Gain / Loss % Change
Dow Jones (0DJIA) 34876.61 -45.27 -0.13
S&P 500 (0S & P5) 4556.07 -26.57 -0.58
Nasdaq (0NDQC) 14285.31 -247.24 -1.70
Russell 2000 (IWM) 205.14 -2.77 -1.33
IBD 50 (FFTY) 38.24 -1.01 -2.57
Last Updated: 11:50 AM ET 4/5/2022

Treasury yields rise after economic data

10-year Treasury paper revenue rose 13 basis points to 2.54%.

While inflation and interest rates showed no signs of declining, the rise followed a booming reading in the service sector.

The S&P US Services Purchasing Managers’ Index showed the biggest increase so far this year. Although lower than the initial estimate of 58.9, the services sector rose to 58 in March from 56.5 in February.

Jennifer Lee, an economist at BMO Capital Markets, said the revival in the services sector’s door opens next month for the central bank to tighten its monetary policy.

Chris Williamson, chief business economist at S&P Global, said:

Demand for this specialty has grown significantly as a result of recent corporate scandals. “Prices for services are rising at an unprecedented rate as consumer prices rise due to rising prices of energy and other raw materials and wages. Consumer price inflation is likely to accelerate further as we head into spring,” he said.

In another service report, the Institute for Supply Management’s Index for March stood at 58.3. The index, which tracks more than 375 service providers in 16 industries, was at 56.5 in the previous month.

Russia faces more sanctions

Another concern for the stock market is the imposition of new sanctions by the European Union against Russia. They include Russian energy exports.

“If leaving the Russians without Big Max, Starbucks coffees or Nike shoes does not encourage Putin to end the war in Ukraine, then banning Russian energy imports should make a difference,” said Ibek Oskardeskaya, a senior analyst at the Swiss Bank. Said in a note. “However, this could be a major blow to Europe’s severe energy crisis and economic growth.”

US crude was up 0.3% at $ 103.62 a barrel.

Twitter (TWTR) reduced profits to 5%. The social media company reported Tesla (TSLA) CEO Elon Musk will join its board of directors. The news came on Monday following the news that Musk had bought a 9.2% stake in Twitter. While Musk was on the board, he could not hold more than 14.9% of Twitter’s common stock, the company said in a regulatory filing.

Twitter shares rose 27% on Monday, revealing Musk’s ownership, the biggest single-day profit in the company’s history. According to Dow Jones Market data, the volume was an all-time high. For the first time since October 22, Twitter shares have risen above the 200-day moving average today.

Shares of Tesla fell 2.3% as it worked on the cup base with a buying point of 1,208.10.

Digital World Acquisition (DWAC) fell 14.5% and is on track for its eighth consecutive decline. The Digital World is the SPAC that plans to publicly take on Donald Trump’s social media company Truth Social, a rival to Twitter. After falling 11.5% last week, the SPAC is down more than 23% this week.

Carnival Cruise, Deva in stock market moves

Carnival Cruise Line (CCL) posted a 3% gain in mid-day, following a record number of registrations for the week of March 28-April 3. This week’s bookings topped the double digits more than the previous seven-day record, Carnival News reported.

22 of its 23 vessels have resumed operations after the industry was severely affected by the epidemic. The stock is above its 50-day moving average, but is still consolidating below the 200-day line.

Deva medicine (TEVA) also destroyed its entire 5.4% morning gain. Barclays upgraded the general-pharmaceutical manufacturer from equivalent to overweight and raised the price target from 11 to 13. Deva shares cleared the resistance at 10.25am.

Innovator IBD 50 ETF (FFTY) fell 2.6%, while many of its technology stocks fell 2% to 4%. Axelis Technologies (ACSL) lost nearly 9% in heavy trading, falling further below the March 17 breakout of 75.10. Axelis fell more than 7% below the entry, which is a sell signal. It broke below the 50 day line.

Alpha & Omega Semiconductor (AOSL) fell below the 50-day line. It is now 17% below its 59.48 buying point. That too is a selling point.

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