The main market indices fell at noon on Wednesday, with the Dow Jones Industrial Average remaining close to breakeven, but the high tech Nasdaq was hit.
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The Dow Jones industrials rose 0.1%, the S&P 500 fell 0.6% and the Nasdaq sank 1.4% in the stock market today. The small capitalizations tracked by Russell 2000, with a fall of almost 2%, also stumbled. The volume was decreasing on the two main exchanges compared to Tuesday.
Earlier on Wednesday, the Commerce Department reported that January retail sales increased 5.3%. This represents a sharp increase in relation to the 1% drop in December and Econoday’s forecast of a 1.1% increase. Without vehicles, sales jumped 5.9%. Excluding gas and automobiles, sales grew 6.1%.
Technology stocks propelled Nasdaq to a 43.6% gain in 2020, its fifth best year ever. The S&P 500 was up 16.3% and the Dow was up 7.2% last year. Read The Big Picture for a detailed daily market analysis.
The Covid-19 pandemic continues to cloud the US economy as national blockages approach the one-year mark. But there are signs of hope as vaccinations spread and the number of cases begins to stabilize in some states.
Overview of the US stock market today |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain / Loss | % Change |
| Dow Jones | (0DJIA) | 31486.07 | -36.68 | -0.12 |
| S&P 500 | (0S and P5) | 3911.61 | -20.98 | -0.53 |
| Nasdaq | (0NDQC) | 13849.61 | -197.89 | -1.41 |
| Russell 2000 | (IWM) | 222.33 | -3.50 | -1.55 |
| IBD 50 | (FFTY) | 47.61 | -1.34 | -2.74 |
Last update: 12h00 ET 17/02/2021 |
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Cumulative Covid-19 cases worldwide have exceeded 110 million, with more than 2.4 million deaths, according to the Worldometer. In the United States, cases have passed 28.3 million, with more than 500,000 deaths.
Dow winners and losers
Verizon (VZ) grew and rose 4% in heavy trade. A regulatory document showed that Warren Buffett’s Berkshire Hathaway (BRKA) opened a new stake in the telecommunications giant by buying 147 million shares for $ 8.62 billion. Verizon’s shares now represent 3% of the portfolio, making it the 6th position by number of shares held.
Chevron (CVX) gained 2.4% in large volumes, also after news that Buffett opened a new stake in the oil giant. Berkshire Hathaway bought 48.5 million shares of Chevron, which is back to a 95.92 point buy from a previous flat base.
Merck (MRK) rose 2% in trade above the average. Buffett increased his stake in the pharmaceutical company by 28%. In other news, Nektar Therapeutics (NKTR) said it will test a combination using Merck’s Keytruda in patients with head and neck cancer.
Nektar’s bempegaldesleukin has shown promise when used with drugs like Keytruda. Nektar’s shares soared 11% to exceed a 23.10 point of purchase of a glass with handle, according to analysis by the MarketSmith chart.
Back at Dow, blue chip losers included Apple (AAPL), Disney (DIS) and Honeywell (HON), down more than 1% each.
Buffett reduced his stake in Apple by 6%. But the iPhone maker remains the main share in its portfolio in market value and the second in number of shares held. Apple’s stock fell below its 50-day moving average for the first time since November. It is now about 6% below its 138.89 buy point in a cup with handle.
Outside the Dow
Inventories of solar energy, software and chips led the disadvantage among IBD’s 197 industrial groups. But shares in airlines, drugstores and telecommunications were among the few groups that resisted the sale.
Bitcoin’s price jumped more than 4% to its all-time high on Wednesday morning. Bitcoin reached $ 51,735 before slightly reducing earnings, according to CoinDesk. The cyber-currency was above the $ 51,000 midday level. The Grayscale Bitcoin Trust (GBTC) has gained almost 4% and is at new highs.
The Innovator IBD 50 ETF (FFTY) sank more than 3% before cutting part of that big loss when growing stocks plummeted. 360 DigiTech (QFIN), Chegg (CHGG) and SciPlay (SCPL) fell by more than 8% each.
Ligand Pharmaceuticals (LGND), Etsy (ETSY), Commercial counter (TTD) and Marvell Technology (MRVL) also presented great losses.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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