The Dow Jones industrial average rose as the Nasdaq recovered in a session where stocks were seeking direction. Airline shares started with optimal booking data, while appeal (AAPL) and Nike (NKE) were the best blue chips.
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However, a Covid vaccine has been suspended in major European countries, including Germany and France, amid concerns over blood clots.
Delta Luglyne (DAL), American Airlines (AAL) and United Airlines (UAL) all made strong profits as travelers returned to the air. Among EV shares, Tesla (TSLA) rose higher even than Nine (NIO) turns upside down.
Germany, France Prepare vaccine
The largest EU countries pulled on Monday to suspend the implementation of the OxfordAstraZeneca (AZN) Covid vaccine. Germany, France, Spain and Italy have made the move after a number of incidents in Europe with blood clots. AstraZeneca’s shares were flat.
The World Health Organization says there is no evidence that the vaccine, which was not approved for use in the US, caused the incidents, but EU countries have decided to wait while safety investigations are conducted. A number of smaller European countries, including Denmark, the Netherlands and Norway, have already suspended the jab.
Meanwhile, the 10-year Treasury yield fell slightly, but was above the 1.6% mark. Yields move inversely to bond prices.
The Federal Public Market Committee will meet Tuesday and Wednesday. Investors will see if this changes their outlook on interest rates. Federal Reserve Chairman Jerome Powell may take a more proactive tone to alleviate market concerns.
Nasdaq rallies; S&P 500 Apartment
The Nasdaq managed to pull out of the red and was the most important index to perform best. It rose a meager 0.3%. NXP Semiconductors (NXPI), which is added to the S&P 500, performed best, rising almost 8%.
US stock market overview today |
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|---|---|---|---|---|
| Index | Symbol | Price | Profit / loss | % Change |
| Dow jones | (0DJIA) | 32797.83 | +19.19 | +0.06 |
| S&P 500 | (0S & 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: 13:14 ET 3/15/2021 |
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The S&P 500 was barely in the green. Outside airline shares, Gap (GPS) performed best with a gain of almost 7%.
The volume was higher compared to the same time Friday. Trading rose about 13% on the Nasdaq and 3% on the NYSE.
The S&P sectors were mixed, with utilities and real estate. The biggest backlogs were financial and energy.
Small-cap capitalism fought back, although the Russell 2000 rose 0.1% in 2000.
Growth stocks managed to pull out of the red, with the Innovator IBD 50 ETF (FFTY) up about 0.3%.
Apple stock as Dow Jones rises
The Dow Jones industrial average returned to positive territory after spending much of the session in the red. It achieved a profit of less than 0.1%.
Apple shares were one of the best-performing components and rose about 1.3%. This enabled the stock to move further away from its 200-day moving average.
The next goal is to take the 50-day line again. It fell below the benchmark after a breakthrough in the cup failed, MarketSmith analysis shows.
Nike performed even better, making a profit of about 3%. Nike stock forms a new base. The flat base offers a buying point of 148.05.
Nike’s earnings are Thursday. One approach highlighted by Investor’s Business Daily is to use options as a strategy to reduce the risk around earnings.
Airline stocks rise with bookings
Airline shares rose after airlines reported higher bookings, while the Transportation Security Administration said performances were rising to the highest levels in a year.
The TSA said it selected more than 1.34 million people on Sunday. That is 86,000 more people than the same day last year, but 45% below the same date in 2019.
Delta Luglyne en JetBlue Airways (JBLU) said discussions have increased this month as more people are vaccinated. Delta Air Lines increased by approximately 3%. JetBlue increased by more than 5%. American Airlines achieved more than 7% and United Airlines performed even better, with an increase of more than 8%.
Southwest Airlines (LUV) achieved a more marginal profit of approximately 1.5%.
While airline stocks are recovering, total traffic levels, or passenger mile turnover, remain well below pre-pandemic levels. Business travel in particular is expected to weaken the boom in leisure travel as more people work from home.
IBD Stock of the Day Nears Buy Point
Applied materials (AMAT) is the IBD stock of the day as it approaches a new buying point.
The company plans to host an investor day on April 6, where updated long-term guidance could be a catalyst for AMAT shares
AMAT stock jumped off the ten-week line last week, a strong signal. The ten-week line represents the average closing price over the past ten trading weeks.
Demand for chips for cloud computing centers, 5G wireless devices and cars has boosted sales of its equipment. However, the demand for manufacturing devices for flat screens was weak.
Read more about AMAT shares here in the Stock Of The Day column.
Tesla shares, Nine stock reversed
Tesla shares rose again, achieving a gain of about 1.5%. This comes after rising by 16% last week.
Tesla’s RS line improves after a recent dive, and the stock moves back to its 50-day moving average.
Tesla stock has previously collided through its 50-day line, but good overall performance means it has achieved a compound score of 94. The recent poor performance of Tesla shares has lost its place on Leaderboard.
However, its Chinese rival Nio hit reverse gear and gave up almost 2%. It is taking a breather after the gain of more than 19% last week.
The Nio stock is still below the 50-day moving average, but it is now well off its 200-day line. The stock collapsed after a 57.30 turnout failed.
Follow Michael Larkin on Twitter @IBD_MLarkin for more information on growth stocks and analysis.
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