Dow Jones Slips While Nasdaq Leads Upside After Fed Holds Rates Near Zero; These Growth Stocks Score Breakouts

The Dow Jones Industrial Average traded slightly lower in today’s market while the Nasdaq reversed higher. The S&P 500 also traded positive after the Fed kept its aggressive monetary policy stance in place on Wednesday.


Stock Market Today

At around 3 p.m. ET, the Nasdaq composite gained less than 0.1% after paring earlier gains. The S&P 500 also traded less than 0.1% higher, while the Dow Jones held a small loss of 0.3%. The small-cap Russell 2000 index held a gain of 0.3%. Volume was higher on the NYSE and lower on the Nasdaq vs. the same time on Tuesday.

As for the Innovator IBD 50 ETF (FFTY), shares of the growth-focused ETF lost 0.3% Wednesday, proving to be a market underperformer. The index continued with its second straight day of declines. Stocks leading the downside in the index were Pinterest (PINS) and Leaderboard stock Generac (GNRC), with losses of over 14% and 4%, respectively.

Stocks were largely mixed on Wednesday after the Federal Reserve said in its statement following the latest meeting of the Federal Open Market Committee that it is going to maintain its current easy money policies.

After March’s labor report showed a surprisingly strong 916,000-job gain, Powell said he wanted to see a “string of months” with equally strong reports before policymakers begin to even ponder a very gradual pullback of monetary accommodation.

Its key interest rate will remain near zero, though the Fed did acknowledge recent growth and an improvement in employment rates.

“Amid progress on vaccinations and strong policy support, indicators of economic activity and employment have strengthened,” the Fed said in its statement. “The sectors most adversely affected by the pandemic remain weak but have shown improvement. Inflation has risen, largely reflecting transitory factors.”

Two Growth Stocks Break Out

As for growth stocks, a few from the MarketSmith Growth 250 list broke out from proper bases. Shares of Vizio (VZIO) and Tenet Healthcare (THC) traded inside a buy zone on Wednesday.

Vizio Holdings rose above an IPO base 26 buy pointaccording to MarketSmith analysis. The stock, which debuted on March 25, maintains very solid IBD ratings including a 92 Composite Rating. Shares remain inside the buy zone after rising over 8%. The key buy area tops out at 26.35.

The firm manufactures smart TVs and sound bars for home entertainment systems. The firm also features a recent slew of positive year-over-year earnings growth, from 125% to 217% to 1,000% in the most recent quarters.

Elsewhere, Tenet Healthcare broke out from a cup base with a 57.98 buy point. Shares gained nearly 4% and remained inside the key buy zone, which tops out at 60.87. The hospital and outpatient center operator is up more than 47% since the start of 2021. The stock maintains positive IBD Ratings with an 85 Composite and a 92 Relative Strength Rating.

Dow Jones Today

As for the Dow Jones industrials, blue chips were largely mixed. But a few in the financial sector held solid gains, including credit card companies American Express (AXP) and Visa (V).

Elsewhere, Chevron (CVX) led the upside with a gain of over 2.5%. The blue chip oil and gas company regained its 50-day line as it builds a flat base with a 112.80 buy point.

On the downside, Microsoft (MSFT) was among stocks underperforming. The stock gapped down in heavy volume despite an earnings beat. Microsoft posted fiscal Q3 results that beat Wall Street targets thanks to strong cloud computing services revenue. Shares declined nearly 3% in afternoon trading.

Disney (DIS) was also among stocks leading the downside with a loss of roughly 0.5%. The media giant is building a new flat base with a 203.12 buy point, according to IBD MarketSmith chart analysis. Shares still remain below their key 50-day moving average.

Other stocks leading the downside included Boeing (BA) and Proctor & Gamble (PG) with losses over 2% each.

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


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