The Dow Jones Industrial Average rose, while the Nasdaq recorded the best gain from the rebound in technology stocks. Tesla (TSLA) gaped after CEO Elon Musk spoke about spying fears. Chinese rival Nio (NIO) has recovered. Walt Disney (DIS) and Apple (AAPL) were among the main blue chips.
X
The shares were aided by a 10-year decline in Treasury yield. It fell below the 1.7% level. It is trading at around 1.693%. Yield on 30-year Treasury bonds also declined.
Meanwhile, the AstraZeneca (AZN) The Covid-19 vaccine was found to be 79% effective in a trial in the United States. He also found that there was no “increased risk” of blood clots. The fear of blood clots has already led many European countries to suspend delivery of the vaccine.
The safety and efficacy analysis is based on a study of 32,449 participants in a Phase 3 study. AstraZeneca’s shares were up almost 3%.
Meanwhile, Europe is struggling amid a third wave of coronavirus infections. This led to an increase in blocking measures.
Vaccine distribution is slow in the region, and European Union leaders are due to meet on Thursday to discuss possible vaccine export bans. The United Kingdom is currently the leading European nation in terms of vaccine distribution.
Nasdaq, S&P 500 Rally
Overview of the US stock market today |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain / Loss | % Change |
| Dow Jones | (0DJIA) | 32671.04 | +43.07 | +0.13 |
| S&P 500 | (0S and P5) | 3941.20 | +28.10 | +0.72 |
| Nasdaq | (0NDQC) | 13408.91 | +193.68 | +1.47 |
| Russell 2000 | (IWM) | 225.06 | -1.88 | -0.83 |
| IBD 50 | (FFTY) | 46.60 | -0.17 | -0.36 |
Last updated: 12:16 pm ET 3/22/2021 |
||||
Nasdaq was the main index with the best performance, presenting a gain of more than 1%. Splunk (SPLK) was the main component, presenting a gain of almost 6%.
The S&P 500 also went up, up almost 1%. Kansas City Southern (KSU) was the leader here, with more than 12%. Won after rival Canadian Pacific (CP) agreed to acquire it in a merger valued at about $ 25 billion.
The volume was lower than at the same time on Friday. Trades fell about 10% on Nasdaq and more than 51% on the NYSE.
The S&P sectors were mixed, with more winners than losers. Technology was leading, while finance was lagging behind.
Small caps were struggling, with Russell 2000 giving up more than 1%.
Growth stocks were doing better, however, the ETF Innovator IBD 50 (FFTY) still fell around 0.4%.
Disney, leader of Apple shares, Dow Jones
The Dow Jones Industrial Average was behind the other major indices, but was still up 0.2%.
Disney shares were among the main components, showing a gain of almost 2%. It is just above the purchase zone after leaving a flat base. The correct point of purchase here was 183.50.
Apple’s shares also performed well, although that is in the midst of a challenging period for the shares. AAPL’s stock rose more than 2%. It is still trading at its 50-day moving average.
Intel (INTC) was the main component, presenting a gain of about 3%.
Elon Musk calms fears; Charges for Tesla shares
Tesla’s stock rose and its gain of around 5.5% puts it close to the session highs. He is trying to resume his 50-day moving average.
The shift comes after CEO Elon Musk spoke about fears that Tesla cars could be used as spy devices in China. The Chinese military has banned vehicles due to surveillance concerns.
“There is a strong incentive for us to be very confidential with any information,” said Musk at the China Development Forum on Saturday. “If Tesla used cars to spy on China or anywhere, we would be closed.”
The China Development Forum is an annual conference organized by the State Council of the communist government.
Tesla’s shares had another boost after an analyst announced an increase in the target price. Cathie Wood’s Ark Invest sees Tesla’s price rise to 3,000 by 2025. The target is based on expectations that the electric vehicle giant will launch an autonomous robot taxi service built on its fully autonomous technology platform.
The recent poor performance of Tesla’s shares has caused it to lose its place on the Leaderboard. However, it is around 28% at its recent low of 539.49.
Chinese rival Nio was not doing so well, but came out of the red to post a gain of about 0.7%.
Chip stock to watch
A number of semiconductor equipment and 5G chip companies were featured on Monday’s IBD Live. Some are forming bases.
Applied Materials (AMAT) increased by more than 3%. It may be forming a base with a buying point of 124.60. It has a perfect 99 IBD compound rating.
Entegris (ENTG) rose more than 2%. It formed a pattern of consolidation, with the entry here 114.10. It has a Composite Rating of 97, with gains being a strong point.
Qorvo (QRVO) is consolidating and expects to exceed a potential entry point of 191.92. It has an excellent EPS rating of 94.
Brooks Automation (BRKS) could be forming a base with an entry point of 91.88. The gains and performance of the stock market are strong.
Follow Michael Larkin on Twitter at @IBD_MLarkin for more information on growth and analysis actions.
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