The Dow Jones Industrial Average rose amid a broad recovery as the bond market cooled. Meanwhile, Senate Democrats look set to withdraw a controversial measure from the $ 1.9 trillion stimulus bill. Boeing (BA) and Apple (AAPL) were among the main blue chips.
Among the EV actions, Tesla (TSLA) and Nio (NIO) charged more after last week’s losses. Nio is reporting earnings after the close. General Motors (GM) also went up. Bitcoin was also recovering, which boosted the Grayscale Bitcoin Trust (GBTC) higher.
X
The bond market cools; This stimulus measure seems dead
Monday’s advance was aided by a cooling in the yield of 10-year Treasury bills. It fell to as low as 1.417%, from 1.599% on Friday. Yields fall when bond prices rise. This is an important indicator, as the 10-year term serves as the benchmark loan cost in the global debt markets.
Last week, the 10-year yield rose above 1.6% and spent a significant amount of time above 1.5%.
In the meantime, Senate Democrats must abandon a plan to help raise workers’ wages by issuing tax penalties against companies.
Democrats are trying to approve President Joe Biden’s $ 1.9 trillion stimulus bill in the Senate after it finally passed the House over the weekend.
Senator Bernie Sanders proposed using a tax levy on companies that pay workers below a certain threshold after the Senate congressman decided that a proposed minimum wage of $ 15 an hour could not be included in the relief bill. Covid-19 in the budget reconciliation process.
Nasdaq, S&P 500 Surge
Nasdaq was the main index with the best performance, gaining about 2.5%. Coronavirus vaccine kit Zoom Video Communications (ZM) was the main protagonist, with gains of almost 8%.
Overview of the US stock market today |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain / Loss | % Change |
| Dow Jones | (0DJIA) | 31481.90 | +549.53 | +1.78 |
| S&P 500 | (0S and P5) | 3890.20 | +79.05 | +2.07 |
| Nasdaq | (0NDQC) | 13498.66 | +306.32 | +2.32 |
| Russell 2000 | (IWM) | 224.64 | +6.33 | +2.90 |
| IBD 50 | (FFTY) | 47.49 | +1.83 | +4.01 |
Last updated: 13h22 ET 01/03/2021 |
||||
The S&P 500 was not far behind, more than 2%. Nuclear energy stock NRG Energy (NRG) had the best performance, gaining about 14%.
The volume was lower compared to the same time on Friday. It fell about 12% more on the Nasdaq and more than 25% on the NYSE.
The S&P sectors were having a very good day, with everyone showing gains. Finance and utilities were leading.
Small caps also made big gains amid the rise, with the Russell 2000 up almost 3%.
But it was growth stocks that were doing better. The Innovator IBD 50 ETF (FFTY) was up more than 4%. Digital Turbine (APPS) had the best performance of IBD 50, increasing almost 13%.
Apple Stock Lifts Dow Jones
The Dow Jones Industrial Average had the slightest gain from the main indices, but still rose almost 2%. It has moved further away from its 50-day moving average.
Apple’s shares were among the biggest winners, rising more than 4%. The move helped to gain more ground in its 50-day line.
The relative strength line has been falling for Apple’s stock. The recent poor performance saw its composite IBD Rating drop to 73.
But it was Boeing’s shares that stood out on Monday. It has risen more than 5% and is approaching a consolidation pattern buying point of 244.18. However, its Composite Rating highlights the challenges ahead, as it dropped to a dismal 5 out of 99.
Tesla Stock, Nio Charge Superior
The shares of the IBD Leaderboard Tesla were recovering strongly, gaining more than 5%. Last week, the TSLA fell more than 13%. He remains isolated below his 10-week line.
Tesla’s stock still remains well extended from a 466 point purchase point to a cup with handle. The company halted production of its Model 3 sedan at its Fremont, Calif. Plant, amid a global chip shortage that is affecting the auto industry.
Chinese rival Nio had an even stronger gain, up almost 9%. Nio is preparing to post earnings after closing.
A previous leak from a canopy base with a purchase point of 57.30 failed, and the stock is now well below that entry point.
GM shares also moved, rising more than 2%. This helped to move further away from its 50-day moving average. He left a cup base on January 12 with positive EV news. However, it gave way after a wave.
Li Auto (LI) also went up, gaining more than 3%.
Bitcoin Rises; GBTC stock is returned
Bitcoin was coming back strongly. He went up from just $ 43,000 to get back above the $ 49,000 level. It is currently just over $ 49,000, according to CoinDesk. Bitcoin’s price is still well below the $ 58,332 record that hit February 21.
The grayscale Bitcoin Trust is up almost 7%, although it has yielded some gains. GBTC’s shares plunged 23.8% last week, but are still above its 10-week moving average.
These growth stocks are broken
Kitchen equipment stock Middleby (MIDD) left the purchase zone after leaving a consolidation pattern. The ideal point of purchase is 149.49.
The RS line hit a new high, but the stock boasts a dull EPS rating of 49.
Madison Square Garden Entertainment (MSGE) fell below its point of purchase after coming out of a short consolidation pattern. The ideal entry point is 111.56. The RS line has just reached a new record.
IPO Stock Tern Pharmaceuticals (TERN) came out of an IPO base. The ideal point of purchase was 23.78.
As it is a young action, its rating of 56 is not a useful guide at the moment. The company has yet to make a profit, but that is not uncommon for such a young company.
Follow Michael Larkin on Twitter at @IBD_MLarkin for more information on growth and analysis actions.
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