The Dow Jones Industrial Average gained with Nasdaq rebounding in a session in which stocks were looking for direction. Airline stocks took off with optimistic booking data, while Apple (AAPL) and Nike (NKE) were the main blue chips.
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However, a vaccine against Covid has been suspended in major European nations, including Germany and France, amid concerns about blood clots.
Delta Airlines (DAL), American Airlines (AAL) and United airlines (UAL) all achieved great gains with the return of travelers to the skies. Among the EV actions, Tesla (TSLA) rose even more, even when Nio (NIO) struck reverse.
Germany and France Suspend Vaccine
The biggest EU nations acted on Monday to halt the launch of Oxford-AstraZeneca (AZN) Covid vaccine. Germany, France, Spain and Italy made the move after a series of incidents in Europe involving blood clots. AstraZeneca’s shares were stable.
Although the World Health Organization says there is no evidence that the vaccine, which is not approved for use in the United States, caused the incidents, EU countries have decided to wait while safety checks are carried out. Several smaller European countries, including Denmark, the Netherlands and Norway, had already suspended the jab.
Meanwhile, the 10-year Treasury’s yield fell slightly, but remained above the 1.6% mark. Yields move inversely at bond prices.
The Federal Open Market Committee is due to meet on Tuesday and Wednesday. Investors will look to see if this changes their outlook on interest rates. Federal Reserve Chairman Jerome Powell may take a more proactive tone to allay market concerns.
Nasdaq Rallies; S&P 500 Flat
Nasdaq managed to get out of the red and was the main index with the best performance. It went up just 0.3%. NXP Semiconductors (NXPI), which is being added to the S&P 500, had the best performance, rising almost 8%.
Overview of the US stock market today |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain / Loss | % Change |
| Dow Jones | (0DJIA) | 32797.83 | +19.19 | +0.06 |
| S&P 500 | (0S and P5) | 3942.73 | -0.61 | -0.02 |
| Nasdaq | (0NDQC) | 13347.80 | +27.94 | +0.21 |
| Russell 2000 | (IWM) | 233.85 | +0.26 | +0.11 |
| IBD 50 | (FFTY) | 47.13 | +0.11 | +0.23 |
Last updated: 13h14 ET 15/03/2021 |
||||
The S&P 500 was barely in the green. Outside the airline’s shares, Gap (GPS) performed better with a gain of almost 7%.
The volume was higher compared to the same time on Friday. Negotiations rose about 13% on Nasdaq and advanced 3% on the NYSE.
The S&P sectors were mixed, with utilities and real estate leading the way. The biggest stragglers were finance and energy.
Small caps were holding up, although the Russell 2000 was up just 0.1%.
Growth stocks managed to rise from the red, with the Innovator IBD 50 ETF (FFTY) rising by about 0.3%.
Apple increases inventory as the Dow Jones goes up
The Dow Jones Industrial Average returned to positive territory after spending much of the session in the red. He recorded a gain of less than 0.1%.
Apple’s shares were among the best performing components, up about 1.3%. This allowed the stock to move further away from its 200-day moving average.
Your next goal will be to resume the 50-day line. It fell below the benchmark after a cup-base break failed, shows MarketSmith’s analysis.
Nike performed even better, registering a gain of about 3%. Nike’s shares are forming a new foundation. The flat base is offering a purchase point of 148.05.
Nike’s earnings expire on Thursday. One approach highlighted by Investor’s Business Daily is to use options as a strategy to reduce risk around profits.
Airline shares take off with increased bookings
Airlines’ inventories took off after carriers reported an increase in bookings, while the Transportation Security Administration said valuations had reached the highest levels in a year.
TSA said it examined more than 1.34 million people on Sunday. That’s 86,000 more people than on the same day last year, but 45% below the same date in 2019.
Delta Air Lines and JetBlue Airways (JBLU) said reserves increased this month as more people were vaccinated. Delta Air Lines grew by about 3%. JetBlue went up more than 5%. American Airlines rose more than 7% and United Airlines fared even better, with an increase of more than 8%.
Southwest Airlines (LUV) recorded a more marginal gain of around 1.5%.
While airline stocks are recovering, overall levels of traffic, or revenue from passenger miles, remain well below pre-pandemic levels. Business travel, in particular, should lag behind the recovery in leisure travel, as more people work from home.
IBD stock of the day approaches the point of purchase
Applied Materials (AMAT) is the IBD day stock as it approaches a new point of purchase.
The company plans to host an investor’s day on April 6, where updated long-term guidance can be a catalyst for AMAT’s actions.
AMAT shares jumped from the 10-week line last week, a bullish sign. The 10-week line represents the average closing price in the last 10 weeks of trading.
Demand for chips for cloud computing data centers, 5G wireless devices and automobiles has driven sales of their equipment. Demand for flat panel monitor manufacturing equipment, however, has been weak.
Find out more about AMAT’s stock in the Monday’s Stock column today.
Tesla Stock Rallies, Nio Stock Reverse
Tesla’s shares were rising again, registering a gain of about 1.5%. It comes after rising 16% last week.
Tesla’s RS line is improving after a recent decline, and stocks are returning to their 50-day moving average.
Tesla’s shares previously fell on its 50-day line, but the overall good performance means that it maintains a composite rating of 94. The recent poor performance of Tesla’s shares has caused it to lose its place on the Leader Board.
However, its Chinese rival Nio shifted into reverse, yielding almost 2%. It is taking a breath after more than 19% gain from last week.
Nio’s shares remain isolated below their 50-day moving average, but are now well out of their 200-day line. The stock collapsed after a 57.30 entry breach failed.
Follow Michael Larkin on Twitter at @IBD_MLarkin for more information on growth and analysis actions.
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