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Dow Jones Dives As Bitcoin Crashes On These Warnings; Apple, Tesla Sell Off

The Dow Jones Industrial Average dived 400 points before paring some losses, as Bitcoin plunged on warnings from Chinese regulators. Apple and Tesla stock sold off in morning trade. Target jumped higher on blow-out earnings results.




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Among the Dow Jones leaders, Apple (AAPL) slid 1.4% Wednesday, while Microsoft (MSFT) moved down 1.2% in today’s stock market. Goldman Sachs (GS) and JPMorgan (JPM) fell back below buy points after recent breakouts.

Tesla (TSLA) skidded 5% Wednesday. Target (TGT) reported strong earnings results ahead of the stock market open.

Among the top stocks to buy and watch, Alphabet (GOOGL) and ASML (ASML) are in or near new buy areas.

Microsoft is an IBD Leaderboard stock. ASML is on IBD SwingTrader. Alphabet was featured in this week’s Stocks Near A Buy Zone column.

Dow Jones Today

The Dow Jones Industrial Average traded down 1.15% early Wednesday, while the S&P 500 moved down 1.2%. The tech-heavy Nasdaq composite pared losses to 1.3% in morning trade.

Among exchange traded funds, the Innovator IBD 50 (FFTY) declined 3.5% Wednesday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) traded down 1.5%. Meanwhile, the SPDR S&P 500 ETF (SPY) lost 1.5%.

Split Stock Market Rally

The Dow Jones Industrial Average and S&P 500 slid further from their recent all-time highs following Wednesday’s early sharp losses. Meanwhile, the tech-heavy Nasdaq is about 7% off its record high, as tech stocks continue to struggle.

Tuesday’s Big Picture column commented, “For most of the session, the indexes bobbed up and down in a relatively tight band. But a sell-off in the final 20 minutes of trading made it clear the sellers were in charge.”

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

Bitcoin Price

The price of Bitcoin plunged Wednesday morning, trading as low as $30,201 before paring losses after Chinese regulators said financial institutions should not accept cryptocurrencies as payment. Bitcoin traded around $35,500 early Wednesday, according to Coindesk.

Bitcoin-tracking ETF Grayscale Bitcoin Trust (GBTC) dived about 13% in morning trade.


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Stock Market Earnings: Target

Target reported strong Q1 earnings results early Wednesday. The company’s earnings skyrocketed 525% to $3.69 a share as sales rose 23% to $24.20 billion.

Target shares jumped almost 5% in morning trade, on pace to snap a two-day slide.

Dow Jones Stocks: Goldman, JPMorgan

Dow Jones financial leader JPMorgan is just below a 161.79 buy point in a flat base, according to IBD MarketSmith chart analysis. Shares slid 1.5% Wednesday morning.

On May 5, Dow Jones stock Goldman Sachs broke out past a 356.95 buy point, entering a buy range that goes up to 374.80. Goldman shares gave up the entry on May 12 before retaking the entry late last week. The stock undercut the buy point during Wednesday morning’s 2.3% loss.

Stocks To Buy And Watch: Alphabet, ASML

FANG stock leader Alphabet is in buy range from support at the 50-day average. Shares threatened to add to Tuesday’s 1.2% loss, falling more than 1% Wednesday morning.

Alphabet is an IBD Leaderboard stock. Per Leaderboard commentary, “Alphabet is in a buy zone as it stages a rebound from its 10-week line. It has also moved back above its 21-day exponential moving average, another encouraging sign.”

IBD Long-Term Leader ASML gave up an effort to rebound from its critical 50-day line, sliding below that line of support in early trade. A rebound would have placed the chip leader in a new buy area. Shares dropped about 3% Wednesday.

ASML is also an IBD SwingTrader stock.

According to IBD Stock Checkup, ASML stock boasts a strong 98 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.


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Tesla Stock

Tesla stock skidded 5% Wednesday, hitting a new recent low. Shares are falling further below their long-term 200-day line and are nearly 40% off their 52-week high.

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 dropped 1.1% Wednesday, on pace to extend a losing streak to three sessions. Shares are finding resistance around their 50-day moving average and are once again testing their long-term 200-day line.

Last week, the stock triggered the 7%-8% loss-cutting sell rule from a 135.63 buy point.

IBD Leaderboard stock Microsoft moved down 1.2% Wednesday, as it trades below a flat base’s 246.23 buy point, according to IBD MarketSmith chart analysis. The buy zone goes up to 258.54.

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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