Dow Jones Slips; Microsoft Drops Amid Bill Gates News; Bitcoin Sinks On Elon Musk Tweets

The Dow Jones Industrial Average slipped, whereas the Nasdaq fell hardest as tech shares bought walloped once more. Microsoft (MSFT) dipped amid studies former CEO and co-founder Bill Gates left the agency’s board amid a probe into a previous relationship with a staffer. Meanwhile, the Bitcoin worth crashed once more amid extra tweets from Tesla (TSLA) CEO Elon Musk.


The EV inventory itself gave again Friday’s features and continues to check a key long-term technical degree, the 200-day moving average.

There had been some shiny spots, nonetheless, with pharma large Merck (MRK) and chemical inventory Dow Inc. (DOW) the highest performing blue chips. Bank shares had been additionally faring effectively as soon as once more, with Kearny Financial (KRNY) and Ameris Bancorp (ABCB) managing to cross proper buy points.

Nasdaq Beaten Lower As Tech Stocks Struggle Again

The Nasdaq was the worst performing main index, however closed close to session highs to cede 0.4%. Comcast (CMCSA) was the largest loser, falling greater than 5%, whereas at-home health inventory Peloton (PTON) adopted carefully behind.

The S&P 500 additionally fell, however closed down a extra average 0.3%. Discovery (DISCA) was among the many greatest laggards, slipping 5% on the information it’s to merge with WarnerMedia. The deal is valued at $43 billion.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 34327.79 -54.34 -0.16
S&P 500 (0S&P5) 4163.29 -10.56 -0.25
Nasdaq (0NDQC ) 13379.05 -50.93 -0.38
Russell 2000 (IWM) 221.32 +0.47 +0.21
IBD 50 (FFTY) 44.70 +0.08 +0.18
Last Update: 4:04 PM ET 5/17/2021

There had been extra losers than winners among the many S&P sectors. Energy and supplies had been main, whereas communication companies ended up being the largest laggard.

Volume was decrease, which is an efficient signal on a down day. It fell 35% on the NYSE, in line with early knowledge. Trading was nearly flat on the Nasdaq, falling 0.2% vs. the identical time on Friday.

Small caps impressed, with the Russell 2000 managing to rally out of the purple and shut up 0.2%. Growth shares additionally fared effectively, with the Innovator IBD 50 ETF (FFTY) up 0.2%.

Dow Jones Slips As Merck Stock Leads

The Dow Jones Industrial Average fell again towards its 50-day line, regardless of being one of the best performing main index. However it fell lower than 0.2%, dropping round 50 factors within the course of.

Merck was the highest Dow element, rising round 2%. This allowed the pharma inventory to retake its 200-day line. Chemical inventory Dow was additionally faring effectively, gaining 1.5% because it rose out of a flat base’s purchase zone. The very best purchase level was 67.37.

Walt Disney (DIS) continued to fall following its disappointing earnings report. The inventory gave up simply over 2%.

Microsoft Stock Dips Amid Bill Gates Revelations

Microsoft inventory was one other noteworthy Dow Jones laggard, although it pared losses to shut down 1.2%. The Leaderboard member is now buying and selling round 50-day shifting common, and beneath a 246 purchase level.

The inventory is falling after the Wall Street Journal reported that board members determined founder Bill Gates needed to step down from its board in 2020 whereas they investigated a previous romantic relationship with a feminine Microsoft worker. The coupling was reportedly deemed inappropriate.

A supply advised the Journal that board members tasked with the matter employed a legislation agency to conduct an investigation in late 2019. It got here after an engineer submitted a letter stating she had a sexual relationship with Mr. Gates that spanned years.

Mr. Gates resigned in March final 12 months, simply three months after being reelected to his seat. He stepped down earlier than the investigation was completed, and earlier than the complete board formally rule on the matter.

A spokeswoman for Mr. Gates denied the matter was the explanation he stepped down. She additionally advised the WSJ the affair occurred virtually 20 years in the past and “ended amicably.”

Bitcoin Price Slammed On More Elon Musk Tweets

Bitcoin began falling on the weekend after Musk replied “Indeed” to a tweet from @CryptoWhale which mused in regards to the risk Tesla could promote their whole $1.9 billion Bitcoin stake.

Musk later posted a observe up tweet early Monday, the place he stated, “To clarify speculation, Tesla has not sold any Bitcoin.”

The worth of Bitcoin plunged as little as $42,212 earlier than paring losses. It was buying and selling across the $44,000 mark, falling greater than 3% on its worth 24 hours in the past in line with Coindesk.

The cryptocurrency was beforehand spanked after a tweet from Musk the place he introduced his agency will now not be accepting Bitcoin as fee for autos.

The Grayscale Bitcoin Trust (GBTC) ETF was off lows, however nonetheless surrendered 10%. It is now dipping towards its 200-day moving average, whereas the RS line appears to be like weak.

Meanwhile Tesla inventory itself was persevering with to battle, although it closed off lows to surrender simply over 2% for the day. TSLA inventory has dropped greater than 20% prior to now 4 weeks alone.

On Jan. 25, Tesla inventory hit a document excessive at 900.40, after climbing as a lot as 93% from a 466 purchase level in a cup with handle.

These Bank Stocks Pass Buy

Bank shares proceed to be a supply of power amid the broader unfavorable motion. In reality a few names managed to stage breakouts, a formidable feat.

Kearny Financial broke out of a flat base with a 13.44 buy point on a weekly chart, MarketSmith analysis shows. The each day chart provides a decrease deal with entry of 13.

The inventory has a prime notch EPS Rating of 98, and earnings have accelerated for the previous two quarters.

Ameris Bancorp moved right into a purchase zone after rising previous a cup with deal with entry of 57.91. However it reversed decrease, and closed slightly below its purchase level. The relative strength line has been spiking of late, which is encouraging.

This inventory has a really sturdy Composite Rating of 96, with each earnings and inventory market efficiency spectacular.

Please observe Michael Larkin on Twitter at @IBD_MLarkin for extra on development shares and evaluation.


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