• Sat. Feb 24th, 2024

Dow Jones falls as crypto stock Coinbase tumbles 21% amid SEC lawsuit

Dow Jones falls as crypto stock Coinbase tumbles 21% amid SEC lawsuit

The Dow Jones Industrial Average posted small losses on Tuesday morning, continuing its slide after the stock market’s slight retreat on Monday. Meanwhile, AI stock Mobile ( MBLY ) skidded after the company announced Intel (INTC) will sell part of its holdings in the self-driving technology firm. And cryptocurrency exchange Coinbase ( COIN ) crashed after the SEC sued the company for acting as an unregistered broker.


As the March-quarter reporting season draws to a close, Tuesday’s earnings reports include Academy Sports & Outdoors (ASO), Siena (CIEN), GitLab (GTLB) and Thor Industries (THO).

Academy shares trimmed losses to 0.2% in morning trade, while CIEN stock fell 10.5%. GitLab shares are up 23% while THOR stock is up 12%.

Stock market today

Mobileye skidded more than 4% after an Intel subsidiary, Intel Overseas Funding, launched a secondary offering for 35 million Mobileye shares. Coinbase fell more than 21 percent after the SEC filed suit against the company in New York federal court on Tuesday morning. The SEC alleged that the company was operating as an unregistered broker and exchange.

The electric-vehicle giant Tesla ( TSLA ) fell more than 1% Tuesday morning. Dow Jones Tech Giants apple (AAPL) and Microsoft ( MSFT ) was trading lower after the stock market opened today.

Arista Networks (a net), Cloudflare (NET), Fortinet (FTNT) and Taiwan Semiconductor (TSM) — as well as Dow Jones stocks Boeing (BA), Cisco Systems (CSCO) and Salesforce ( CRM ) — One of the best stocks to buy or watch in a stock market uptrend.

Arista was a recent IBD Stock of the Day and Tesla is an IBD Leaderboard stock. And Cisco was featured in last week’s Stocks Near a Buy Zone column.

IBD’s latest newsletter MarketDiem delivers actionable ideas for stocks, options and crypto right to your inbox.

Dow Jones Today: Oil Prices, Treasury Yields

After Tuesday’s opening bell, the Dow Jones Industrial Average fell 0.15% and the S&P 500 fell 0.1%. The tech-heavy Nasdaq Composite fell 0.3% in morning action.

Among U.S. exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust ( QQQ ) fell 0.4%, while the SPDR S&P 500 ETF ( SPY ) fell 0.25% early Tuesday.

The 10-year US Treasury yield traded up 3.7% on Tuesday. On Monday, the 10-year yield added to Friday’s sharp gains.

US oil prices retreated following Monday’s short-lived OPEC fuel rally. West Texas Intermediate futures fell more than 2 percent on Tuesday, returning to near $70 a barrel.

Stock market action

The Dow Jones industrial average fell 0.6% on Monday, ending a two-day rally. The S&P 500 lost 0.2%, while the tech-heavy Nasdaq Composite inched lower.

Monday’s Big Picture column noted, “There are no signs of imminent danger for the stock market. The Nasdaq’s August 2022 highs and the S&P 500’s rally above 4,200 last week are bullish signs. After Friday’s move above key levels, IBD’s recommended exposure level is 40%. Raised from -60% to 60%-80%.

Now is an important time to read IBD’s The Big Picture column after the recent bullish shift in the market’s outlook.

Five Best Dow Jones Stocks to Buy and Watch Right Now

Dow Jones stocks to buy and watch: Cisco, Boeing, Salesforce

Dow Jones networking giant Cisco Systems is making a cup base with a 52.56 buy point. Watch for a potential handle that shows a prior entry. CSCO stock fell 1.4% on Tuesday.

Aerospace giant Boeing fell 2.1% on Monday, holding above its 50-day line after a six-day rally. According to IBD MarketSmith Pattern Recognition, shares are holding a flat base with a buy point of 221.33. BA stock was up 0.1% early Tuesday.

According to leaderboard analysis, Salesforce has rallied past alternative entries at 193.91 and 200.00 in recent weeks. Last week, shares hit 20% profit territory from a 178.94 cup-with-handle entry, but are now pulling back. The stock may soon test its key 50-day line. CRM stock lost 0.6% on Tuesday morning.

4 Best Growth Stocks to Watch Stock market rally

Best Stocks to Buy and Watch: Arista, Cloudflare, Fortinet, TSMC

According to IBD MarketSmith Pattern Recognition, networking giant Arista Networks is below its 171.44 buy point. ANET stock fell 2% on Tuesday morning.

Cybersecurity leader Cloudflare broke out last week to double down 66.20 buy points. Shares ended Monday in a 5% buy zone, as high as 69.62. The net stock fell 0.6 percent on Tuesday.

Monday’s IBD Stock of the Day, Fortinet, decisively retook its flat base’s 69.07 buy point in the session’s 4.6% rally. FTNT stock closed in a 5% buy zone, rising at 72.52. Shares fell 0.7 percent on Tuesday.

Chip foundry Taiwan Semiconductor pared losses to 0.9% on Monday, in buy range from the double-bottom’s 95.82 buy point. 5% buy area works out to 100.72. TSM stock was down 0.6% on Tuesday morning.

Learn how to time the market with IBD’s ETF Market Strategy

Best Stocks to Buy and Watch During a Stock Market Rally

These are four of the best stocks to buy and watch in today’s stock market, including two Dow Jones leaders.

Company Name symbol Correct buy point Type of point of purchase
ASML (ASML) 683.18 Cup with handle
Salesforce (CRM) 200.00 Consolidation
Boeing (BA) 221.33 Flat base
Arista Networks (a net) 171.44 Cup base
Source: IBD data as of June 5, 2023

Join IBD experts as they analyze the top stocks in the current stock market rally on IBD Live

Tesla stock

IBD Leaderboard stock Tesla stock rose 1.7% on Monday, surpassing a cup base’s 207.79 buy point. Shares closed 33% off their 52-week highs on Monday.

TSLA stock threatened to give up a small portion of Monday’s gains, falling 1.2% on Tuesday morning.

Dow Jones Leaders: Apple, Microsoft

Among the Dow Jones stocks, Apple stock fell 0.8% to a new all-time high on Monday. The stock continues to hold sharply above the 157.38 buy point and is outside the buy range at 165.35. AAPL shares fell 0.9 percent in early trade on Tuesday.

Apple has released computer goggles for augmented and virtual reality called Vision Pro

Microsoft shares extended their winning streak to three sessions on Monday, rising 0.2% to hit a new 52-week high of 338.56. Shares are in the 20%-25% profit zone from the 276.76 flat-base buy point, so investors can at least take some profit here. On Tuesday morning, MSFT stock was down 0.6%.

Be sure to follow Scott Lehtonen on Twitter @IBD_SLehtonen Learn more about growth stocks and the Dow Jones Industrial Average.

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