The Dow Jones Industrial Average dropped 50 points Wednesday ahead of the conclusion of the Federal Reserve’s two-day meeting. Tesla stock battled to retake a long-term level, while hot IPO stock Roblox (RBLX) plunged as much as 11% on mixed results.
Tesla (TSLA) fell 0.4% Wednesday, as it continues its attempt to decisively retake its long-term 200-day moving average.
Dow Jones Today: Fed News
The Dow Jones Industrial Average pared losses to 0.1% Wednesday morning, while the S&P 500 inched lower. The tech-heavy Nasdaq composite rose 0.2% in morning trade.
U.S. Stock Market Today Overview
Last Update: 10:44 AM ET 6/16/2021
The Federal Reserve concludes its meeting Wednesday with a policy announcement at 2 p.m. ET. Investors will be focusing on the Fed’s stance on rising prices. Federal Reserve officials could signal this week that they anticipate raising interest rates sooner than previously expected following a spate of high inflation readings.
Among exchange traded funds, the Innovator IBD 50 (FFTY) traded down 0.6% Wednesday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) moved up 0.4%. Meanwhile, the SPDR S&P 500 ETF (SPY) fell almost 0.1%.
Stock Market Rally
The S&P 500 reversed from record highs Tuesday, while the Dow Jones Industrial Average may be set for a test of its 50-day support level. Meanwhile, the tech-heavy Nasdaq continues to rebound from its 50-day moving average, notching a record closing high Monday and lingering on the cusp of all-time highs early Wednesday.
Tuesday’s Big Picture column commented, “With the stock market sentiment still positive, investors should continue to be on the lookout for buying opportunities. But stay disciplined. Keep new positions small until this hesitant market uptrend proves itself. Be sure to cut your losses short if the market stalls around its old highs, where it appears to be having some difficulty maintaining upward progress.”
For more stock market commentary, check out IBD’s The Big Picture.
Dow Jones Stocks: JPMorgan
Dow Jones financial leader JPMorgan is trading below a 161.79 buy point in a flat base, according to IBD MarketSmith chart analysis, following last week’s 3.7% descent.
Shares fell another 1% Wednesday, on pace to extend a losing streak to eight sessions. The stock is now sharply below its recent buy point and also below support at its key 50-day line.
Stocks To Buy And Watch: Alphabet, Applied Materials, Crocs
IBD Leaderboard stock Alphabet is trying to break out past a 2,431.48 buy point in a flat base, according to IBD MarketSmith chart analysis. Shares fell 0.1% Wednesday and are right at the entry. Leaderboard noted the stock’s RS line is at new highs, which is a positive sign.
Chip giant Applied Materials building a cup with handle with a 142.22 buy point. Shares are about 1% away from the new entry amid Wednesday’s 0.5% gain.
According to IBD Stock Checkup, AMAT stock boasts a strong 98 out of a perfect 99 IBD Composite Rating. The IBD Composite Rating easily identifies stocks with a blend of strong fundamental and technical characteristics.
Bullishly, the stock’s relative strength line is at new highs, indicating strong stock market outperformance. An RS line at new highs on the breakout day indicates a market leader.
Hot IPO Stock Roblox Plunges
Hot IPO stock Roblox plunged as much as 11% Wednesday morning after reporting mixed results late Tuesday. The company said that daily active users rose 28% in May from a year ago to 43 million. But that was down 1% from 43.3 million in April of this year.
Shares triggered the round-trip sell signal from an 83.51 buy point in a short consolidation. The stock broke out on May 21 and climbed as much as 24% past the entry on June 4.
Tesla stock fell 0.4% Wednesday, threatening to add to Tuesday’s 3% decline. The EV giant continues to battle for support around its long-term 200-day line. A new base could be forming, but the stock is far away from any new buy point.
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, Apple rose 0.8% Wednesday morning, looking to rebound from Tuesday’s 0.6% loss. Apple stock is tracing a new flat base with a 137.17 buy point after triggering the 7%-8% loss-cutting sell rule from a 135.63 buy point in early May. However, the stock’s lagging RS line indicates significant stock market underperformance.
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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