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Dow Plunges 600 Points As Interest Rates Run Higher; Alphabet, Apple Slammed | Stock News & Stock Market Analysis

Major stock indexes were under serious selling pressure in late-afternoon trading Friday as negative sentiment was fueled by some high-profile earnings reports and another big jump in the 10-year Treasury yield.

X Nasdaq 100 names like Alphabet (GOOGL), Apple (AAPL) and (AMZN) made headlines Friday after reporting earnings. Alphabet plunged 5% and Apple gave back 3.5%, but Leaderboard name Amazon was a bright spot, rising 4.5%.

With about one hour remaining in the session, the Dow Jones industrial average was down 2.4%; the S&P 500 lost 2.1% and the Nasdaq composite slumped 1.9%. Volume on both exchanges was tracking slightly higher than Thursday’s levels in the stock market today. The Nasdaq still has some breathing room above the 50-day moving average, a key support level to watch. Major stock indexes were on pace to notch weekly losses of 3% or more.

Exxon Mobil (XOM) and Chevron (CVX) led the Dow lower with losses of 5%-6% but not because of plunging oil prices. At the New York Mercantile Exchange, U.S. crude oil futures edged lower to $65.61 a barrel.

Money plowed out of bonds again after January job growth came in better-than-expected. The 10-year Treasury yield was recently trading around 2.84%, up about 5 basis points. Nonfarm payrolls increased by 200,000, slightly better than the consensus estimate for 175,000. Wage growth was the strongest since 2009. Wall Street is worried that inflation could become an issue if economic data stay robust. That could force the Federal Reserve to be more aggressive with rate hikes this year and beyond.

In the enterprise software space, Shopify (SHOP) was resilient around the 10-day moving average, rising nearly 1% to 127.38. It’s holding just above a 124.04 buy point.

FANG name Netflix (NFLX) continued to prove its mettle with a bounce off the 10-day moving average. Shares rose 1.6% to 269.25. After a breakout over a 204.48 buy point, Netflix gapped up powerfully on Jan. 23 on strong Q4 results.

Meanwhile, China stocks stayed in various states of disrepair. After plunging nearly 6% Thursday on earnings, Alibaba (BABA) extended losses, falling another 1% to 190. It’s holding above the 50-day moving average but just below the 191.85 buy point. (JD) also extended losses, falling more than 1%. It’s just below a 47.50 cup-with-handle buy point.

Inside the IBD 50, Align Technology (ALGN) snapped back after four straight declines. Shares rose more than 1% to 259.11. Tuesday’s earnings report brought some sellers into the stock, but it’s holding above the 50-day moving average after a failed breakout over a 266.51 buy point.


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