The Dow Jones Industrial Average fell more than 100 points before turning higher Friday, as Bitcoin plunged below $48,000 before paring losses. Tesla stock reversed higher in morning trade, while Coinbase tumbled to new lows before recovering.
Among the Dow Jones leaders, Apple (AAPL) rallied 0.9% Friday, while Microsoft (MSFT) moved up 0.4% in today’s stock market. Dow Jones chip giant Intel (INTC) fell sharply after reporting earnings late Thursday.
Tesla (TSLA) turned up 1% Friday, following Thursday’s 3.3% slide, while Coinbase Global (COIN) stumbled as much as 3.9% in morning action. Social media leader Snap (SNAP) reported strong earnings results late Thursday, fueling sharp gains in morning trade.
Dow Jones Today
The Dow Jones Industrial Average rose 0.2%, while the S&P 500 gained 0.5%. The tech-heavy Nasdaq composite moved up 0.8% in morning trade.
Stock Market Rally: Dow Jones, S&P 500 Below Highs
Amid the current stock market rally, the Dow Jones Industrial Average and S&P 500 are falling from record highs following Thursday’s sharp losses.
Meanwhile, the tech-heavy Nasdaq sits off its own all-time highs amid Thursday’s weakness.
Thursday’s Big Picture cautioned, “Despite falling three of the last four sessions, the market remains in a confirmed uptrend, although the Nasdaq and S&P 500 both added a day of institutional selling Thursday. The overall distribution-day count remains light. The S&P 500 holds three distribution days, while the Nasdaq now has two.”
Bitcoin Plunges Below $48,000; Coinbase Tumbles
Bitcoin briefly plunged below $48,000 overnight, trading as low as $47,467 before paring losses. The price of Bitcoin traded around $49,600 Friday morning. On April 14, Bitcoin topped out at $64,829, according to Coindesk.
The Grayscale Bitcoin Trust (GBTC) sold off 5% Friday morning, on pace to extend a losing streak to six sessions. The Bitcoin-tracking ETF broke down below its key 50-day line this week.
Cryptocurrency exchange Coinbase tumbled nearly 4% Friday morning before paring losses amid the weakness in Bitcoin. Shares hit a post-IPO low Friday and are about 35% off their high of 429.54.
The stock’s weakness illustrates the importance of waiting for an IPO base to form before jumping into hot IPO stocks.
Dow Jones Earnings: Intel Earnings
Dow Jones chipmaker Intel handily beat Wall Street’s first-quarter targets but its second-quarter earnings guidance disappointed. The company earned an adjusted $1.39 a share on sales of $19.67 billion in the March quarter.
Shares sold off 7% Friday morning.
Stock Market Earnings: Snap
Snap reported better-than-expected earnings and revenue for its first quarter late Thursday, as daily active users jumped 22% to 280 million.
Stocks To Watch: Nvidia, PayPal, Square
Graphics-chip maker Nvidia is below its 615 buy point in a new cup base following this week’s weakness. The 5% buy zone goes up to 645.75. Shares rallied more than 1% Friday morning.
IBD Leaderboard stock PayPal is adding a handle to a cup base, moving the buy point from 309.24 to 277.96, according to IBD MarketSmith chart analysis. Shares moved up 0.3% Friday, and they remain above their 50-day line.
According to Leaderboard commentary, “Three up weeks in a row is encouraging. Yet it’s key to watch now how the stock holds those nice gains. The current base is third stage … The Relative Strength Rating is improving but has not reached 80 in a long while.”
Rival Square is also building a cup-with-handle base, though the handle is a bit deeper than ideal. The new buy point is 278.23. Shares declined more than 1% Friday, as they try to find support around their key 50-day moving average.
According to IBD Stock Checkup, Square 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.
Tesla stock reversed from early losses to gain 1% Friday morning, looking to rebound from Thursday’s sharp losses.
Last week, shares of Tesla regained their key 10-week moving average, a critical support level, for the first time since late February. Tesla is forming a new base, but it is too early for a new risk-optimal 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
Software giant Microsoft traded 0.4% higher Friday. Microsoft is trading at the top of the 5% buy range past a flat base’s 246.23 buy point that tops out at 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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