The Dow Jones Industrial Average rallied 50 points after briefly reversing lower Wednesday, as Bitcoin briefly jumped back above $40,000. Pinduoduo turned lower despite strong earnings results, while Nvidia earnings are due late.
Tesla (TSLA) rallied over 2% Wednesday, on pace to rebound from Tuesday’s 0.3% loss. Pinduoduo (PDD) reported earnings ahead of the stock market open, while tech titan Nvidia (NVDA) will report earnings after the close.
Dow Jones Today
The Dow Jones Industrial Average traded up 0.1% Wednesday, while the S&P 500 rose 0.2%. The tech-heavy Nasdaq composite extended gains to 0.6% in morning trade.
U.S. Stock Market Today Overview
Last Update: 10:32 AM ET 5/26/2021
Stock Market Rally At Key Levels
The Dow Jones Industrial Average and S&P 500 continue to rebound from their 50-day support levels despite Tuesday’s falls. Meanwhile, the tech-heavy Nasdaq is holding just above its 50-day line after retaking that level Monday.
Tuesday’s Big Picture column commented, “As volume rose vs. the prior day on both the Nasdaq and NYSE, the S&P 500’s drop was large enough to warrant calling it a new distribution day. Yet the distribution count for the S&P 500 remains at seven, because the April 20 sell-off expired on time.”
For more stock market commentary, check out IBD’s The Big Picture.
The price of Bitcoin briefly traded above $40,000 before paring gains, according to Coindesk, continuing the recovery from its recent plunge. Bitcoin traded around $39,200 Wednesday morning. Bitcoin tumbled as low as $31,179 on Sunday.
The Grayscale Bitcoin Trust (GBTC) jumped over 4% Wednesday, but remains about 45% off its 52-week high.
Dow Jones Stocks: Goldman, JPMorgan
Dow Jones financial leader JPMorgan is trading at a 161.79 buy point in a flat base, according to IBD MarketSmith chart analysis. Shares gained 0.4% Wednesday morning.
Goldman Sachs is in the 5% buy range past a 356.95 buy point that goes up to 374.80. Shares were up 0.8% Wednesday.
Stocks To Buy And Watch: Applied Materials, Commvault, UiPath
IBD Leaderboard stock Applied Materials moved up 0.2% Wednesday, but remains squarely above the 50-day line. Shares are building a consolidation with a 146.10 buy point. Meanwhile, an early entry at 138.77 is also in play.
Per Leaderboard commentary, “Applied Materials is forming a new base. The stock climbed above the 10-week line, which is being used as an aggressive entry.”
Commvault is at the top of the 5% buy zone past a 71.82 buy point in a cup with handle following Monday’s breakout. The 5% buy area goes up to 75.41. Shares lost almost 1% Wednesday morning.
According to IBD Stock Checkup, CVLT stock boasts a strong 97 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.
Stock Market Earnings: Pinduoduo Beats
Pinduoduo reported Q1 results early Wednesday that topped estimates. The China e-commerce company reported an adjusted loss of 23 cents per share on revenue of $3.38 billion. Analysts expected Pinduoduo to report a loss of 38 cents on revenue of $3.08 billion.
The stock reversed from early gains to fall 5% in morning trade, and is about 40% off its 52-week high. Shares are finding resistance at their 50-day moving average line.
Graphics-chip maker Nvidia looked to extend its five-day win streak Wednesday, moving up 0.1% in morning trade.
Nvidia earnings are due out late Wednesday. The company is expected to earn $3.29 a share on sales of $5.39 billion, according to IBD data.
Tesla stock rallied over 2% Wednesday morning, rebounding from Tuesday’s mild fall.
The stock reclaimed its long-term 200-day moving average on Monday. 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 gained 0.1% following Tuesday’s 0.2% fall. Shares are struggling to retake their 50-day line. A decisive retake of the 50-day line would be bullish for the stock’s prospects; however, the stock’s lagging RS line indicates significant stock market underperformance.
Earlier this month, the stock triggered the 7%-8% loss-cutting sell rule from a 135.63 buy point.
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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