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Dow Jones Futures Fall As Stock Market Rally Test Continues, Bitcoin Still Volatile; Target, Facebook, Google In Buy Zones

Posted Date: May 20 2021
Dow Jones futures fell modestly early Thursday, along with S&P 500 futures and Nasdaq futures, after a wild day for the stock market. Cisco earnings, the Ford F-150 Lightning and Bitcoin's ongoing price swings were in focus overnight.
 
The major indexes tested key levels Wednesday morning while Bitcoin cratered, only for equities and cryptocurrencies to rebound well off lows. The S&P 500 and Dow Jones found support at their 50-day moving averages while the Nasdaq held above last week's lows. Still, they all closed down for a third-straight session.
 
Federal Reserve policymakers gave the first official hints that they are thinking about talking about tapering bond purchases. That news lifted Treasury yields and the dollar, but didn't appear to have a big impact on stocks.
 
Meanwhile, Bitcoin crashed to just over $30,000 Wednesday morning, then rebounded sharply, but still down significantly from Tuesday. Bitcoin tumbled over the past week after Tesla (TSLA) CEO Elon Musk turned on the biggest digital asset, but Musk offered some fresh support on Wednesday. Coinbase (COIN), which suffered an outage Wednesday morning, hit a fresh low. Microstrategy (MSTR), Grayscale Bitcoin Trust (GBTC) and other Bitcoin plays sold off before paring losses
 
Target (TGT), Facebook (FB), Google parent Alphabet (GOOGL), Maravai LifeSciences (MRVI) and Trip.com (TCOM) flashed buy signals. But the current market environment hasn't been favorable for new buys.
 
Meanwhile, commodity-related stocks, including miners, metals and fertilizers all retreated, as crude oil, copper, lumber and other commodity prices fell. Airlines, which showed promise Tuesday morning, fell back Wednesday. Financials also struggled.

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