The Dow Jones Industrial Average fell even as Apple (AAPL) hit a new record high. The price of Bitcoin plunged as El Salvador made it its national currency, with Coinbase Global (COIN) and Grayscale Bitcoin Trust (GBTC) slicing lower. EV stock Tesla ((TSLA)) surged higher in a buy zone.
DocuSign (DOCU) was suffering a post-earnings hangover, while fellow Leaderboard stock Avantor (AVTR) moved above a profit goal on acquisition news.
Nasdaq Gains As Small Caps Lag
The Nasdaq was the only major index to make progress Tuesday, though its gain of less than 0.2% was light. Match (MTCH) fared best here, rising more than 7% on the news it is to be added to the S&P 500.
In contrast, the S&P 500 fell back 0.2%. Wynn Resorts (WYNN) fared best with a gain of around 5.5%, while VF Corp. (VFC) lagged with a dip of almost 5%.
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Among the S&P sectors, technology and communication services were among the few posting a gain. Real estate and industrials were making the worst losses.
Small caps were getting pressured by the bears, with the Russell 2000 declining 0.6%.
Growth stocks were once again a silver lining for investors, with the Innovator IBD 50 ETF (FFTY) up 0.3%.
The Dow Jones Industrial Average lagged with a loss of 0.6%.
While the index fell, Apple stock was hitting a new all-time high. It was up almost 2%. It is now extended past a cup base buy point of 137.17.
The stock has also managed to clamber its way above the buy zone from a trend line entry of 148.00.
The company is gearing up for the iPhone 13 launch this month, while an Apple electric vehicle is also rumored to be in the works.
Bitcoin Plunges On El Salvador Move, Coinbase Dips
The price of Bitcoin plunged as it was adopted as the official currency of El Salvador Tuesday.
OANDA senior market analyst Edward Moya said the digital currency had plunged on a “buy leading up to the big event, sell the fact” reaction to the historic moment.
“What accentuated this moment was MicroStrategy CEO and prominent Bitcoin proponent Michael Saylor’s encouragement for cryptocurrency traders to buy $30 in BTC in solidarity with El Salvador,” he said in a research note. “Social media platforms were very cautious over the weekend that a plunge could occur following El Salvador’s big day.”
IPO stock Coinbase Global took a steep dip on the move, and was down around 4%. Coinbase stock remains clear of its 50-day moving average however.
Grayscale Bitcoin Trust was having even less luck, though it was off lows. It was down almost 7&, but managed to clamber its way back above its 200-day moving average.
The 50-day line is trading beneath its 200-day, which is a bearish indicator.
Tesla Stock Surges
Tesla stock managed moved higher in a buy zone after gaining almost 3%. Volume could be better, however the relative strength line is now making gentle progress.
The stock is currently actionable from an early buy point of 730. A deep, large base is also continuing to form.
Tesla stock got a boost following the firm’s AI Day, which featured engineer-led presentations of the EV maker’s self-driving capabilities and its Project Dojo supercomputer.
The event impressed some analysts, with Deutsche Bank reiterated its buy rating on the EV giant while touting its “bold vision.”
A Tale Of Two Leaderboard Stocks
DocuSign stock powered up by more than 5% on Friday following its earnings report, but shares fell hard Tuesday.
Analysts at Wells Fargo, JPMorgan, RBC, UBS and other firms raised their price targets on DocuSign stock Friday, giving it an added boost.
DocuSign is a member of the prestigious IBD Leaderboard list of leading growth stocks.
In contrast, Avantor was a bright spot among Leaderboard names. It gained around 3% on news it is buying Masterflex, a unit of Antylia Scientific, for $2.9 billion.
Avantor has been riding its 21-day exponential moving average higher after a breakout from a base in June. It has just hit its 20% profit goal from its 34.09 buy point.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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