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Dow Jones Slides, Tech Stocks Tumble As Yields Jump On Accelerating Inflation; Apple, Tesla Sell Off

The Dow Jones Industrial Average dropped 200 points Wednesday, as Treasury yields jumped on key inflation data. Apple and Tesla stock sold off in morning trade before trimming losses.




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Among the Dow Jones leaders, Apple (AAPL) sold off 1.7% Wednesday, while Microsoft (MSFT) moved down 1.5% in today’s stock market. Goldman Sachs (GS) is in buy range after a recent breakout, while JPMorgan (JPM) is trying to break out past a new buy point.

Tesla (TSLA) skidded as much as 2.5% before cutting losses to around 0.8% Wednesday morning.

Among the top stocks to buy and watch, Callaway Golf (ELY), Deere (DE), MarineMax (HZO) and Southern Copper (SCCO) are in or near new buy zones.

Microsoft is an IBD Leaderboard stock. Callaway was Tuesday’s IBD Stock Of The Day. Deere is an IBD SwingTrader stock pick, while JPMorgan and MarineMax were featured in this week’s Stocks Near A Buy Zone column.

Dow Jones Today: Key Inflation Data

The Dow Jones Industrial Average traded down 0.7% early Wednesday, while the S&P 500 moved down 0.9%. The tech-heavy Nasdaq composite tumbled 1.55% in morning trade.

Ahead of the open Wednesday, the consumer price index jumped 4.2% in April from a year ago, the fastest pace since September 2008.

The 10-year Treasury yield rallied about 3% to 1.67% in morning trade, its biggest jump since March 29. The 10-year Treasury yield closed Tuesday at 1.62%.

Among exchange traded funds, the Innovator IBD 50 (FFTY) dropped 0.9% Wednesday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) traded down 1.7%. Meanwhile, the SPDR S&P 500 ETF (SPY) fell 0.9%.

Split Stock Market Rally

The Dow Jones Industrial Average and S&P 500 slid from record highs during Tuesday’s sell-offs. The tech-heavy Nasdaq fell further below its key 50-day moving average with Wednesday’s early losses.

Tuesday’s Big Picture column commented, “Amid a broad sell-off, the Nasdaq composite performed best. Its 0.1% smidgen of a loss Tuesday nearly wiped away an early drop exceeding 2%. And the day’s action compared positively with drops of 0.9% by the S&P 500 and almost 1.4% by the Dow Jones Industrial Average.”

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


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Dow Jones Stocks: JPMorgan

Dow Jones financial leader JPMorgan is trying to break out past a 161.79 buy point in a flat base, according to IBD MarketSmith chart analysis. Shares are about 1% below the entry amid Wednesday’s 1% gain.

Last week, Dow Jones stock Goldman Sachs broke out past a 356.95 buy point and is in the buy range that goes up to 374.80. Goldman shares rallied 1% Wednesday morning.

Stocks To Buy And Watch: Callaway, Deere, MarineMax, Southern Copper

Tuesday’s IBD Stock Of The Day, Callaway Golf, is back in buy range past a 31.46 buy point in a double bottom. The 5% buy area goes up to 33.03. The stock tumbled 4.5% Wednesday morning.

Wednesday’s IBD 50 Stocks To Watch pick, Deere, is trying to break out past a 392.52 buy point in a flat base, according to IBD MarketSmith chart analysis. Shares ended Tuesday about 2% below the buy point. They rose 0.3% Wednesday morning.

Deere is an IBD SwingTrader stock.

IBD 50 stock MarineMax is below a 64.09 buy point in a cup base after Tuesday’s 6.1% decline, according to IBD MarketSmith chart analysis. Shares fell another 3% Wednesday morning.

According to IBD Stock Checkup, MarineMax stock boasts a perfect 99 IBD Composite Rating. The IBD Composite Rating helps investors easily measure the quality of a stock’s fundamental and technical metrics.

Tuesday’s IBD 50 Stocks To Watch pick, Southern Copper, is nearing a 83.25 buy point in a cup-shape base. Shares edged lower Wednesday morning.


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Tesla Stock

Tesla stock skidded as much as 2.5% before slashing losses Wednesday, still on pace to add to Tuesday’s 1.9% decline. Shares fell further below their key 50-day moving average and are more than 30% 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 sold off 1.7% Wednesday, threatening to extend a losing streak to three sessions.

The stock is trading below its critical 50-day line after trigging the 7%-8% loss-cutting sell rule from a 135.63 buy point.

IBD Leaderboard stock Microsoft lost 1.5% Wednesday, as the stock again traded below a flat base’s 246.23 buy point, according to IBD MarketSmith chart analysis. The buy zone goes up to 258.54.

Per Leaderboard commentary, “Microsoft fell back into buy range after a poor reaction to the earnings report. It tried to rebound off its 50-day moving average, but is looking for support here once again.”

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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