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Dow Reverses As Bitcoin Plunges Below $48,000; Intel Dives On Earnings, While Coinbase Turns Higher

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.




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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.

Among the top stocks to buy and watch, Nvidia (NVDA), PayPal (PYPL) and Square (SQ) are near new buy zones.

Microsoft and PayPal are IBD Leaderboard stocks. Apple and Nvidia were featured in this week’s Stocks Near A Buy Zone column.

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.

Among exchange traded funds, the Innovator IBD 50 (FFTY) traded up 2.4% Friday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) rose 0.7%. Meanwhile, the SPDR S&P 500 ETF (SPY) was up 0.5%.

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.


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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.

Shares jumped 6% Friday morning. Snap is tracing a cup with handle with a 65.96 buy point, according to IBD MarketSmith chart analysis. The stock is trying to regain its key 50-day moving average.

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 CheckupSquare 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.


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Tesla Stock

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

Among the top Dow Jones stocks, Apple moved up 0.9% Friday, as the stock continues to build a cup base with a 145.19 buy point, according to MarketSmith chart analysis.

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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