(Via ZEXPR) Thursday morning started off on the wrong foot for Dow Jones futures as they fell along with Nasdaq and S&P 500 futures. Even though Dow Jones took the file in its stride and sank modestly, it was Nasdaq that tumbled to fresh lows. While the stock market rally isn’t dead yet, it is the sell-off spree that has taken the market over.
For Nasdaq the stocks that had managed to hit big during the pandemic are the main target of these lows with Amazon (AMZN), Zoom Video Conferencing (ZM), Datagod (DDOG), Teladoc Health (TDOC), and 2U Inc. (TWOU), all breaking well below long term support.
SecuredVC analyst quips into the Dow Jones future reports to assess where it stands in the market today.
Recent Reports Of Dow Jones Futures
The Dow Jones futures dipped by 0.2% with respect to the fair value. Not only this, but the all morning lows were also experienced in other tech futures with S&P 500 and Nasdaq futures falling back by 0.3%.
Despite the rise of the 10-year Treasury yield on Wednesday, it experienced a dip afterwards of 1 basis point to 1.46%.
It is crucial to keep in mind that the overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Stock Market Rally Continues
It looks like tech giants retreated just in time as the stock market rally closed at session lows. The speculative names sold off, leaving the market right before losing out.
On Wednesday, the stock market report did not bring any good news as the Dow Jones Industrial Average fell by 0.4% even though it held a positive ground for most of the session. With Microsoft (MSFT) and Apple (AAPL) weighing on blue chips, it was the Boeing stock (BA) that walked away a big winner.
Taking into account the other market fallbacks, we have the S&P 500 index slumping by 1.3% well below its 21-day line but managing to hold just above its 50-day. It didn’t look too good for the Nasdaq composite as its tumble fell back by 2.7% piercing through the 50-day line and undercutting well below the 23 Feb. low.
With the uptrend of long-term sovereign bond yields, the stock market rally is surely feeling the pressure especially when it comes to speculative growth. This depiction is evident in the 10-year treasury yield that rose by 6 basis points and managed to reach 1.47%.
A Lookout For The Boeing Stock Breakthrough
Dow Jones’ very own airspace giant Boeing (BA) soared by 2.4% and reached 228.56. The intraday market shares managed to break away from the 229.71 cup with handle buy point on a weekly chart and it hit 235.40.
SecuredVC analyst took an account of Citigroup even though this stock was dropped by Dow Jones Industrial Average, “This stock rose by 3% and reached 70.38, thereby clearing a 69.52 cup-base buy point. And this breakthrough comes weeks after the ones made by JPMorgan Chase, Wells Fargo (WFC), and even Goldman Sachs (GS).”
Boeing stock, either way, is nearing a sky high rise as on Wednesday it rose to 4.7% through 1:35 p.m. EST as positive news led the way for the aerospace industrial giant. Things are looking good for this Dow Jones Stock even though it isn’t the highest on the investment lists.
Amazon, Zoom Video Conferencing Experience A Fallback
Among the other reports, we saw Amazon and Zoom Video Conferencing losing their footing along with Teladoc, Datadog and TWOU stock. All of these stocks fell below their 200-day moving averages.
Amazon stock might be among the handful of trillion-dollar companies yet it did not have a good day for it fell back by 2.9% while the other four stocks retreated 3.75-9.5%
Zoom and Datadog stock experienced its first-ever close below the 200-day mark.
With the Zoom stock being the ultimate coronavirus play, it seems to be holding considerably well ever since the coronavirus vaccine reports have come. Amazon, Teladoc, Datadog and 2U have also managed to thrive in the pandemic, yet all these companies are experiencing a slump owing to the vaccine penetration in the market.
SecuredVC analyst reports that “Investors are betting against these richly valued at-home companies as the COVID-19 restrictions ease and things start getting back to normal.”
The stocks of Teladoc, Datadog and 2U managed to break out with new highs just a couple of weeks ago. So, holding out hope on these companies thriving post-pandemic is not much of a gimmick.
With speculative growth out of favour, it is no doubt that stocks might bounce back within a couple of weeks or months. However, there are some that might never bounce back.
With Zoom and Datadog stocks performing poorly despite being the winners of 2020, we need to focus on another list for this year. Investors are rallying towards more industrial, agricultural and financial stocks as opposed to these tech giants.
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