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Dow Jones Fights To Regain 549 Points From Prior Sell-Off; Bitcoin Slumps Below $30,000

The Dow Jones Industrial Average rebounded strongly in today’s market after an intense sell-off Monday that cost the index nearly 900 points. The S&P 500 and the Nasdaq composite also rebounded and regained some but not all of Monday’s losses.




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A resurgence in Covid-19 cases in many highly vaccinated countries triggered major losses on Monday. But Tuesday’s market recovered much of those losses. The Dow moved back above the 50-day line Tuesday after sliding below it Monday.

Bitcoin broke below the $30,000 level, a key long-term support level, which could mean even lower prices in the near future for the cryptocurrency. Bitcoin was trading around $29,650, down more than 3% midday Tuesday.

All 11 S&P 500 sectors rose, with financials and industrials outperforming. Meanwhile, consumer staples lagged as the sector closed nearly unchanged.

The 10-year Treasury yield, which continues to be an important figure amid the economic recovery, hit a low of 1.13% early Tuesday. But the yield rebounded to 1.21% as money flowed from bonds to stocks in afternoon trading. The bond market continues to fluctuate between its recent March high of 1.76% and lows around 1.13%. Inflation and Covid worries are moving the bond market.

Dow Jones In The Stock Market Today

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 34511.86 +549.82 +1.62
S&P 500 (0S&P5) 4323.20 +64.71 +1.52
Nasdaq (0NDQC ) 14498.88 +223.90 +1.57
Russell 2000 (IWM) 218.29 +6.56 +3.10
IBD 50 (FFTY) 43.22 +1.14 +2.71
Last Update: 4:32 PM ET 7/20/2021

At the close, the Nasdaq held a gain of 1.6%. Meanwhile, the S&P 500 climbed 1.5%. The Dow Jones industrials rose 1.6%, or 549 points. The small-cap Russell 2000 index jumped 3%, leading the upside. Volume was lower on both the NYSE and Nasdaq vs. the close on Monday, according to early data.

Stocks outperforming in the Dow Jones on Tuesday included American Express (AXP), Honeywell (HON) and Boeing (BA), with gains of more than 3% each.

Additionally, tech giant Apple (AAPL) rose almost 3%. Shares ended a three-day losing streak. The stock hit an all-time high last week of 150. Apple stock is extended past the 5% buy zone from a 137.17 entry in a cup base, according to IBD MarketSmith chart analysis.

Elsewhere, Goldman Sachs (GS) and Walt Disney (DIS) also showed gains of more than 2%.

Goldman Sachs is building a new flat base with a 393.36 buy point. Shares are 7% away from the buy zone but still remain just below the 50-day moving average. Meanwhile, Disney stock remains 12% away from its nearest 203.12 buy point. Shares also remain just below key support levels.

IBM (IBM) led the Dow Jones earlier on Tuesday after the company beat Q2 earnings views. But a 5% gain faded to only 1.8% after IBM met resistance at its 50-day moving average.


After Hours: 3 Key Earnings Movers; Six New Buys After Broad Rally


Growth Stocks To Watch

The Innovator IBD 50 ETF (FFTY) gained roughly 3.4% on Tuesday as shares attempted to regain support at their 200-day moving average. Shares of the ETF were pushed below this area of support after a heavy sell-off last week. Stocks leading the upside in the index included DLocal (DLO) and Cricut (CRCT).

Elsewhere in the IBD 50, shares of Skyline Champion (SKY) traded higher, with a gain of over 5%. The firm, which offers manufactured and modular homes, made its first successful bounce off the 10-week line since the recent breakout in May.

DocuSign (DOCU) outperformed with a rise of over 4%. The stock found support at the 21-day exponential moving average last week, launching shares back into the buy zone of a 290.33 buy point.

On Friday, IBD downgraded its market outlook to “uptrend under pressure.” This means that investors should be more conservative when initiating stock positions. Also, consider taking profits where possible and be extra picky about taking on more risk at this time.

Follow Rachel Fox on Twitter at @foxonstocks for more Dow Jones and market commentary.

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