The shares were mixed at noon on Monday, with the Dow Jones Industrial Average turning negative after a 152 point recovery to a new high. Airlines soared as reservations increased.
X
The Nasdaq had a gain of 0.1%, while the Dow Jones industrials and the S&P 500 fell 0.2% in the stock market today. Small capitalizations monitored by Russell 2000 fell 0.4%. The volume was higher in the two main exchanges compared to the same time on Friday.
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. After a strong start this year, the market is recovering from a short correction. 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 many states are easing restrictions and there are signs of hope as vaccinations are launched and cases are starting 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) | 32730.38 | -48.26 | -0.15 |
| S&P 500 | (0S and P5) | 3937.24 | -6.10 | -0.15 |
| Nasdaq | (0NDQC) | 13338.79 | +18.93 | +0.14 |
| Russell 2000 | (IWM) | 233.36 | -0.23 | -0.10 |
| IBD 50 | (FFTY) | 47.01 | -0.01 | -0.02 |
Last updated: 12:12 pm ET 3/15/2021 |
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Cumulative cases of Covid-19 worldwide reached 120 million, with almost 2.7 million deaths, according to the Worldometer. In the United States, cases have exceeded 30 million, with more than 547,000 deaths, although the number of new cases in the United States has declined dramatically in recent weeks.
Dow winners and losers
The biggest Dow Jones winners on Monday included Apple (AAPL), Merck (MRK) and Nike (NKE).
Apple rose 2% earlier, but reduced its gain to 1%. It is now entering its fifth week below the 10-week average. Last week, stocks tested the 40-week line. On February 18, Apple shares triggered the 7% -8% loss-of-sale rule when they fell more than 7% below a 138.89 point-of-purchase for a glass with a handle.
Merck, also up 2% in volume, is trying to resume its 10-week line. The pharmaceutical and Gilead Sciences (GILD) announced that they will jointly develop long-term HIV treatments. They will combine Gilead’s lenacapavir and Merck’s islatravir in a two-dose regimen.
Nike went up 2.5% in turnover fast. Nike shares are approaching 148.05 points of purchase on a flat basis, according to the analysis of the IBD MarketSmith chart. The shares are about 3% away from the point of purchase, after last week’s 5% advance. Nike reports its earnings on Thursday.
3M (MMM), an increase of 1%, briefly exceeded a purchase point of 187.37 for a flat base before reducing its gain. It has advanced nearly 7% this year, but a relative strength rating of 34 means that 3M is behind 64% of all other stocks.
Dow’s biggest losers included Chevron (CVX) and Dow Inc. (DOW), out of more than 2% each.
Outside the Dow
Oil and gas, steel and bank stocks led the handicap among IBD’s 197 industrial groups. But clothing retailers, airlines and other travel stocks outperformed.
In the airline group, United airlines (UAL) skyrocketed 8% in rapid turnover, reaching the highest increase in a year. The shares are almost 20% extended from a 51.41 point purchase to a cup base. The Chicago-based carrier said it saw an increase in travel bookings and “expects primary cash flow to be positive in the future” if that improvement continues.
American Airlines (AAL) and Jetblue Airways (JBLU) rose more than 5% each, to pre-coronavirus market breakdown levels. Airlines, hotels and other travel stocks have soared recently as coronavirus cases have stagnated.
Virtu Financial (VIRT) surpassed a 29.86 buying point for a six-week flat base on Monday morning, before slashing earnings to fall below the entry. The shares were up about 0.5% at noon. The composite rating provider’s rating of 90 places it in fifth place in the 53-share group of specialized financial services. An assessment of 98 earnings per share, part of the overall composite score, leads the group.
Drugstore Dives
Eli Lilly (LLY) fell and plunged more than 8% in mass trade, breaking its 50-day moving average for the first time since December. The stock fell below the bottom of a flat base with a buy point of 218.10. At 12% below the height on the left side, it is still technically in the flat base range. But the sudden break in the 50-day line is a sell signal.
The drugmaker released more details on a phase two study of its donanembab Alzheimer’s disease drug on Saturday. But some secondary goals were mixed.
Caesars Entertainment (CZR), Generac (GNRC), NXP Semiconductors (NXPI) and Penn National Gaming (PENN) recovered on Friday night with the news that they will join the S&P 500 index on March 22 before opening.
Generac, down 0.6%, is an IBD Leaderboard and an IBD 50 stock. Generac last week recovered from its 10-week line to create a buying chance. But now it is extended from the subsequent entry. The shares also reached the 20% -25% profit target from a 234.65 flat-base purchase point, so investors can guarantee some gains.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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