Dow Jones Nears All-Time High As 10-Year Yield Surges; Why Micron Stock Is Soaring Today

The Dow Jones Industrial Average held a modest gain in afternoon trading. Nike stock and Walgreens stock were the top gainers in the Dow Jones today. The other major stock indexes were mostly unchanged as money flowed out of bonds. The 10-year Treasury yield spiked 6 basis points to 1.54%. It was a notable move for the 10-year yield, which moved decisively above its 50-day moving average.

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Nike (NKE) is back above its 50-day moving average, but not by much after a sharp break of the support level earlier this month. Walgreens Boots Alliance (WBA) looked poised for its sixth straight gain in light volume.

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Chevron (CVX) lagged in the Dow Jones, but the stock rallied off lows and was down only 0.3%. It’s near the top of a buy zone after a breakout from a lengthy consolidation in October. Also in the Dow Jones, Coca-Cola (KO) extended gains after the stock gave a buy signal on Dec. 13. It’s still in the 5% buy zone after a breakout from a 20-week consolidation.

Outside The Dow Jones

The big jump in the 10-year yield weighed on the Nasdaq composite, which was down 0.3%. The Invesco QQQ Trust (QQQ), which tracks the performance of the Nasdaq 100, dipped 0.2%. Advanced Micro Devices (AMD) and Nvidia (NVDA) were among the worst performers in the Nasdaq 100, down 3% and 1.7%, respectively.

Micron Technology (MU) outperformed in the Nasdaq 100, up nearly 4%. MU stock was strong after Samsung said it’s reducing production at its NAND memory chip plants in Xi’an, China, due to a spike in Covid-19 cases.

The S&P 500 was mostly flat, but Western Digital (WDC) was another beneficiary of the Samsung news. WDC stock jumped 5.5%. Retailers Target (TGT) and Dollar General (DG) also outperformed in the S&P 500.

IBD Growth Screens

The Innovator IBD 50 ETF (FFTY), which tracks the performance of top-rated growth stocks in the IBD 50 index, added 0.6%, helped by strong performances from Zim Integrated Shipping Services (ZIM) and Alpha & Omega Semiconductor (AOSL). Chip stocks remain a nice pocket of leadership in the stock market.

FFTY is below its 40-week moving average and nearly 13% off its high. But it looks a lot better than fellow growth ETF Ark Innovation (ARKK), which is more than 40% off its high.

Inside the MarketSmith Growth 250, Star Bulk Carriers (SBLK) could try to break out over a trendline soon. That would correspond with a move over the stock’s recent high of 22.75.

Several top stocks in the MarketSmith Growth 250 are holding gains after breakouts, including Alcoa (AA), Leaderboard stock Arista Networks (ANET) and trucking firm ArcBest (ARCB).

Time The Market With IBD’s ETF Market Strategy

Technical breakouts were sparse Wednesday, but Huntsman (HUN) delivered one. Shares jumped 3.6%, topping a 34.57 entry. Also in the chemicals sector, Valvoline (VVV) extended gains as it tries to break out over a 37.51 entry.

Follow Ken Shreve on Twitter @IBD_KShreve for more stock market analysis and insight.

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The post Dow Jones Nears All-Time High As 10-Year Yield Surges; Why Micron Stock Is Soaring Today appeared first on Investor’s Business Daily.