Dow Jones Falls 250 Points After Fed Minutes, But Salesforce Stock Scores Bullish Gain; Tesla Surges Ahead Of AI Day

Major stock indexes fell to session lows in late-afternoon trading Wednesday. Salesforce stock was a big gainer in the Dow Jones Industrial Average today. CRM stock jumped 3%, helped by two price target hikes by JMP and Wolfe Research ahead of next week’s earnings report. Tesla outperformed in the Nasdaq 100 ahead of the company’s AI Day Thursday.


The minutes from the late-July Federal Reserve meeting were released at 2 p.m. ET. FOMC members acknowledged the economy is making progress toward its taper goals. But the goal of “substantial further progress” hasn’t been met yet. Still, many committee see a tapering of monthly asset purchases starting before the end of the year. More details could come at the Jackson Hole Economic Symposium next week or at the Fed’s September meeting.

The 10-year Treasury yield hardly moved after the release of the minutes. The yield was up just over 2 basis points to around 1.28%.

Dow Jones Today

The Dow Jones industrials eased 0.6% as it holds above the 35,000 level. The Dow’s 50-day moving average around 34,711.50 is a key support level to watch.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 35126.84 -216.44 -0.61
S&P 500 (0S&P5) 4423.03 -25.05 -0.56
Nasdaq (0NDQC ) 14616.84 -39.34 -0.27
Russell 2000 (IWM) 216.01 -0.39 -0.18
IBD 50 (FFTY) 45.45 +0.68 +1.52
Last Update: 3:32 PM ET 8/18/2021

Inside the Dow Jones, (CRM) broke out over its recent high of 253.50. Results are due Aug. 25 after the close.

Home Depot (HD) rebounded after Tuesday’s earnings sell-off, up 1%. It’s holding support at the 50-day line.

Insurer Travelers (TRV) looked poised for its ninth gain in 10 trading sessions. It’s near the top of a 15-week flat base.

The S&P 500 performed mostly in line with the Dow Jones, even as retail components like Lowe’s (LOW), TJX Cos. (TJX) and Ross Stores (ROST) outperformed.

The S&P 500’s July 13 distribution day fell off the count Tuesday, because enough time has passed to make it irrelevant. But the S&P 500’s 0.7% decline Tuesday in higher volume added a distribution day to the count. The distribution day count is found every day in the Market Pulse graphic in the daily The Big Picture column. Distribution days are used to monitor signs of institutional selling in the stock indexes.

The Nasdaq composite was down 0.3%. Robinhood (HOOD) was a top gainer in the index, up 7%, ahead of its earnings report after the close.

The Innovator IBD 50 ETF (FFTY) rebounded after three straight losses, up 1.6%. Top-performing IBD 50 components included Upstart (UPST), Cleveland-Cliffs (CLF), Doximity (DOCS), TaskUs (TASK) and Sea Limited (SE). TaskUs is a new addition to IBD’s Sector Leaders screen.

Earnings Movers

Retail earnings reports were in the spotlight. Target (TGT) was down nearly 2% as it tests support at the 10-week moving average. Earnings and sales growth slowed sequentially, but the results still topped expectations. Target also announced a $15 billion share buyback program.

Home improvement chain Lowe’s surged 11%, helped by a bullish earnings report and raised full-year sales guidance.

In the shipping group, ZIM Integrated Shipping (ZIM) was off highs but still rose more than 3% as it forms the right side of a cup base. Adjusted profit of $7.38 a share was well ahead of the consensus estimate of $5.22. Revenue growth accelerated for the fourth straight quarter, surging 200% to $2.38 billion.

Group peer Danaos (DAC) added 3% and is near the top of a cup base.

Follow Ken Shreve on Twitter @IBD_KShreve for more stock market analysis and insight.


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Harry Byrne

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