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Dow Jones Pares Losses To Close Flat As Nasdaq Remains Negative - Investor's Business Daily

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The Dow Jones Industrial Average traded slightly higher in today's stock market as stocks pared earlier losses. Tech stocks led on the downside. Over the past hour of trading, the major indexes lifted strongly off their lows of the day while the Dow and S&P 500 turned positive.

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Stock Market Today

At the close of the day, the small-cap Russell 2000 index was down 0.9%. Meanwhile, the Dow Jones closed up less than 0.1%. The S&P 500 closed slightly higher, up 0.1%. The Nasdaq composite remained in the negative with a decline of 0.5%, after sinking as much as 3.9% earlier in the trading day.

Volume was higher on the Nasdaq and on the NYSE compared with the close on Monday, according to preliminary data.

Earlier on Tuesday, Fed Chairman Jerome Powell commented that the Fed is committed to using the full range of tools to support the economy so that recovery from the coronavirus pandemic can be as robust as possible. In his speech in front of the Senate Banking Committee, he mentioned that inflation and employment remain well below the Fed's objectives.

This implies easy monetary policy is likely to remain in place.

Meanwhile, there's been a sharp rise in long-duration government bond yields in recent days, lowering demand for riskier assets like growth stocks. Yields have risen to levels not seen since before the Covid-19 pandemic. Shares of major tech firms consequently have sold off.

On the CBOE the yield on the benchmark U.S. Treasury 10-year bond reached 1.38% before slipping a few basis points.

Elsewhere, the Innovator IBD 50 ETF (FFTY) was hit hard before cutting its loss to 2%, outpacing the major indexes on the downside. Stocks leading the downside in the growth-focused ETF were Trex (TREX) and 360 DigiTech (QFIN), with respective losses of 9% and 6.6%.

Dow Jones Today

The Dow Jones held a modest gain, as Disney (DIS) and Visa (V) led the upside with gains of around 2% or more. Shares of Disney stock led the index with a gain of 2.8%.

The stock rose above the 5% buy zone from a flat-base buy point of 183.50 after breaking out from this area in early February. Shares held near their highs in afternoon trading. Disney stock recently found solid support at the 50-day line, which sent shares directly past the buy point.

Disney was the IBD Stock Of The Day for Monday, and was also added to Swing Trader after bouncing off its 21-day exponential moving average.

Elsewhere, Apple (AAPL) pared an early loss of over 3% to 0.1% on Tuesday. The tech stock previously flashed a sell signal after falling below its 50-day line in recent days.

Apple stock has erased most of its gains from a recent 125.49 entry. The stock's relative strength line is also declining, which is a bearish sign.

Home Depot (HD), Salesforce.com (CRM) and Walmart (WMT) were the worst performers in the index, falling 3.1%, 2.2% and 1.6%, respectively.

Home Depot stock fell as much as 4% on Tuesday as shares gapped down below its 50-day moving average. Shares sold off despite the home improvement retailer reporting better-than-expected Q4 earnings and sales before the market opened.

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

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