MARKETS: Dow sinks 390 points into the close — YF Premium is bullish on Electronic Arts

Yahoo Finance's Jared Blikre joins Jen Rogers to break down the day's price action in stocks as well as a long in Electronic Arts (EA), a YF Premium Investment Idea.

Video Transcript

JEN ROGERS: Welcome back to "The Final Round." Snapping a three-day winning streak here on the Dow. Dow falling nearly 400 points. Let's bring in Jared Blikre to walk us through the charts here. Jared.

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JARED BLIKRE: Yeah, pretty bad close here, kind of messy. Let's take a look at the chart here of the Dow. You're going to see what happened off of that virus news here coming from a company that said they had a vaccine, and now, maybe they don't. It's some data being called into question here. Even more dramatic on the S&P 500, we had a bigger percentage loss on the Russell 2000, which is nearly 2%.

Basically, we are going into a short on the very intraday time stamped timeframe, and on the swing timeframe, we're still in the long. And on a daily timeframe, we're still in a short. So we've got these bears and bulls just trying to duke it out, trying to figure out the next direction, as we've been talking about here. Tomorrow brings another day.

But I want to turn now to the "Yahoo Finance Premium" investment idea of the day.

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Which is Electronic Arts. And this comes from a fundamental report from Argus Research. And they're saying they're reiterating their buy and raising their fiscal year '21 estimate. They like a price target of about $134. That would be up here. This is a longer term play. So if you're looking to put a stop in, put it just underneath these lows right here.

But just some more notes from the report. They're saying EA saw increased usage in player engagement in the fourth quarter amid COVID-19 stay at home restrictions. Our estimates are estimates imply average EPS growth of 7% over the next two years below our five-year earnings growth rate forecast of 12%. And you can get a free trial of "Yahoo Finance Premium" by coming to our website, yahoofinance.com. You can get signed up for a 14-day trial.