The Dow Jones Industrial Average dropped nearly 100 points on the stock market today, but bitcoin gains managed to drive several cryptocurrency stocks higher. Meanwhile, Treasury Secretary Janet Yellen issued a warning ahead of a major inflation report as a partial government shutdown looms.
Dow stocks dropped further below the 39,000 level Tuesday with a 0.3% loss, while the S&P 500 managed a 0.2% rise. Among the S&P sectors, communication services and utilities gained, while energy and health suffered.
The Nasdaq was flat earlier but revived to advance 0.4% at the end of the trading day.
Volume on the New York Stock Exchange and on the Nasdaq was higher compared with the same time on Monday. Advancers continued to outnumber decliners by nearly 4-3 on the NYSE and more than 3-2 on the Nasdaq.
The small-cap Russell 2000 outpaced the other indexes with a 1.4% climb. The Innovator IBD 50 exchange traded fund surrendered some of its gains earlier in the session but still finished 0.4% higher.
Stock Market Today: Bitcoin Tops $57,000
Bitcoin surged past the $57,000 price level then pulled back slightly, translating to a 4.2% rise. Bitcoin and other crypto assets also have been rallying this week as a bitcoin halving event looms.
According to Coinbase, miners' rewards will be cut by half around April 16 or 17. But a report from MarketWatch says investors are sending the coin rallying amid fears of inflation and uncertainty about when the Fed may start rate cuts.
Coinbase, meanwhile, rose more than 2% to sit just above a buy zone with an entry of 187.39. The stock is at a two-year high.
That was nothing, however, compared with MicroStrategy. The longtime bitcoin holder surged more than 9% Tuesday.
Other crypto plays were mixed. Marathon Digital gained nearly 4% but Riot Platforms sank more than 3%. Riot, however, remains near a handle entry of 18.24.
Home Prices Meet Views
Elsewhere, the yield on the benchmark 10-year Treasury note edged higher to 4.31% as investors absorbed some economic data on the stock market today.
The Case-Shiller Home Price Index met economists' views and rose 0.2% in December, according to Econoday. Meanwhile, the Federal Housing Finance Agency House Price Index for December also met views and rose 0.1%.
The Conference Board's consumer confidence index came in at a 106.7 reading for February. Wall Street had expected 115. Further, the Census Bureau said new orders for durable goods for January fell more than expected, off 6.1%. Economists had expected a drop of 4.5%.
The January personal income and outlays report from the U.S. Bureau for Economic Analysis is due Thursday and is expected to move markets. Economists had predicted the index would show a 0.3% increase from December. But they hope the yearly trend will ease off to 2.4% after December's 2.6%.
Late Monday, Bloomberg reported that Treasury Secretary Yellen views rate hikes around the world as a potential risk to a generally healthy economic outlook. Tightening via rate hikes is happening in some countries, even as others lower rates.
Further, a government shutdown loomed as Congress and the White House worked on a deal to fund federal operations. Congress has until 12:01 a.m. Saturday to fund such departments as Transportation and Energy, but leaders on both sides of the aisle were optimistic they could strike a bargain, the Wall Street Journal reported.
Dow Jones Stocks
Among Dow Jones stocks, Salesforce fell but managed to stay in a profit zone ahead of Wednesday's earnings report.
Salesforce stock is trying to push through the 300 level. Shares finished above that threshold Monday but sank back below it on the stock market today. Salesforce last visited the 300 mark in November 2021, when it reached its all-time intraday peak of 311.75.
Health care and tech leaders on the Dow fared poorly, while Walt Disney, Goldman Sachs and Home Depot gained ground.
Turning away from the Dow Jones index, shares of Workday fell 4% after the company announced fourth-quarter results. Earnings topped views while sales were in line with expectations.
Also in software, Unity Software recovered from some steep losses but finished below the 50-day moving average as the stock slid more than 6%. AutoZone gapped up more than 6% after a strong quarter. Shares cleared a buy zone per chart analysis tools on IBD MarketSmith.
Zoom Video Communications surged 8% on the stock market today after revenue and earnings came in above views. IBD Leaderboard stock Trex opened higher on its 2024 outlook but the stock reversed and ultimately sank after passing the 100 level.
C3.ai is due to report results on Wednesday. Shares are rising for the second straight day and have retaken the 50-day moving average this week. Celsius will release its fourth-quarter report on Thursday. Celsius is approaching a buy point of 68.95, after it cleared resistance around 62.
Birkenstock, Cava Among Stock Market Movers
Among recent new issues, Cava soared past a buy zone after earnings topped expectations. Aggressive investors could use 56.34 as an alternate entry.
Birkenstock approached a buy point in a second breakout attempt. The stock closed lower after breaking out at 52.12 last week, ahead of first-quarter earnings on Thursday.
Shark Ninja reversed and fell, though it held its place in a buy zone from a 53.40 entry after trimming losses to 0.8%. MongoDB is still in a buy zone and just above a buy point of 442.84.
In travel stocks, Airbnb has been volatile after topping a handle buy point at 153.38, but was up 1.9% on the stock market today. Qualcomm topped its January high of 157.98, which can be treated as an entry in a flat base.
In the IBD 50, Lemonade broke out of a cup base with an entry at 20.59.
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