The Dow Jones industrial average rose amid a broad rise as the bond market cooled. Meanwhile, Senate Democrats look set to drop a controversial $ 1.9 billion stimulus bill. Boeing (BA) and appeal (AAPL) were some of the leading blue chips.
Among EV shares, Tesla (TSLA) and Nine (NIO) paid higher due to the losses last week. Nio yields an earnings after the end. General Motors (GM) also rose. Bitcoin has also shrunk, which the Grayscale Bitcoin Trust (GBTC) higher.
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Bond Market Cooling; This stimulus measure looks dead
The advance on Monday was helped by the cooling of the 10-year treasury yield. It slipped as low as 1.417% from 1.459% on Friday. The yield decreases when the price of bonds rises. This is an important measure, as the ten years serve as the standard borrowing cost on world debt markets.
Last week, the 10-year yield rose to above 1.6% and spent a significant time above 1.5%.
Meanwhile, Senate Democrats are expected to abandon a plan to increase workers’ salaries by issuing corporate tax fines.
Democrats want to push President Joe Biden’s $ 1.9 billion stimulus bill through the Senate after it was finally passed in the House this weekend.
Sen. Bernie Sanders proposed that a tax levy be applied to businesses that pay workers below a certain threshold, after the Senate MP decided that a proposed minimum wage of $ 15 per hour was not included in the Covid-19 bill under the budget reconciliation process can not be.
Nasdaq, S&P 500 Surge
The Nasdaq was the top performing index, performing at around 2.5%. Coronavirus Vaccination Zoom video communication (ZM) was the leading player and achieved almost 8%.
US stock market overview today |
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|---|---|---|---|---|
| Index | Symbol | Price | Profit / loss | % Change |
| Dow jones | (0DJIA) | 31481.90 | +549.53 | +1.78 |
| S&P 500 | (0S & 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: 13:22 ET 1/3/2021 |
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The S&P 500 was not far behind, by more than 2%. Nuclear power supply NRG Energy (NRG) performed best, achieving about 14%.
The volume was lower compared to the same time Friday. It fell more by about 12% on the Nasdaq and more than 25% on the NYSE.
The S&P sector had a very good day, with all profits. Finance and utilities were prominent.
Small-cap capitalization has also made strong gains amid bull costs, with the Russell 2000 nearly 3%.
But it was the growth stocks that performed best. The Innovator IBD 50 ETF (FFTY) rose more than 4%. Digital turbine (APPS) was the best IBD 50 player and rose by almost 13%.
Apple Stock lifts Dow Jones
The Dow Jones industrial average averaged the lightest gains on the major indices, but continued to rise by almost 2%. This further removed its 50-day moving average.
Apple shares were among the biggest winners, rising more than 4%. The move helped him gain further ground on his 50-day line.
The relative strength line is falling for Apple shares. Recent poor performance has led to the IBD Composite Rating dropping to 73.
But it was Boeing shares that were the most noticeable component on Monday. It rose more than 5% and closed at a 244.18 consolidation pattern buying point. However, his composite rating highlights the challenges ahead as it drops to a grim 5 out of 99.
Tesla Stock, Nine Charge Higher
IBD Leaderboard shares Tesla rose sharply, reaching more than 5%. Last week, TSLA fell more than 13%. It stays below the ten-week line.
Tesla stock continues to expand well from a 466 buy cup of handle with handle. The company reportedly halted production of its Model 3 sedan in Fremont, California, amid a worldwide shortage of chips hitting the automotive industry.
Chinese rival Nio rose even stronger, rising nearly 9%. Nio is achieving its earnings after the end of the financial year.
A previous breakthrough of a cup base with a buying point of 57.30 failed, and the stock is now well below this entry point.
GM stock also moved and rose by more than 2%. This helped move further away from the 50-day moving average. It erupted on January 12 from a cup base on positive EV news. However, it gave up ground after a boom.
General Motors is the IBD Stock Of The Day due to its bullish setbacks from its ten-week moving average. This is a buying opportunity. It also regained its 21-day line and a trend line. The only caveat is that you want to see a higher volume when the stocks recover.
Li Auto (LI) also rose, reaching more than 3%.
Bitcoin rises; GBTC stock reflects
Bitcoin came back strong. It has risen from as low as just over $ 43,000 to above the $ 49,000 level. According to CoinDesk, it is currently just over $ 49,000. The price of Bitcoin is still much less than the record high of $ 58,332, which it reached on February 21st.
Grayscale Bitcoin Trust rose nearly 7%, although it made some gains. GBTC shares fell 23.8% last week but still hold the ten-week moving average.
These growth stocks are breaking out
Cooking equipment stock Middleby (MIDD) rose outside the buying zone after breaking out of a consolidation pattern. The ideal buying point is 149.49.
The RS line reached a new high, but the stock boasts a weak EPS rating of 49.
Madison Square Garden Entertainment (MSGE) fell back below its buying point after breaking out of a short consolidation pattern. The ideal access point is 111.56. The RS line has just reached a new high.
IPO stock Tern Pharmaceuticals (TERN) has broken out of an IPO base. The ideal buying point was 23.78.
As this is a young stock, the composition of 56 is not a useful guide at the moment. The company has not yet made a profit, but it is not uncommon for such a young business.
Please follow Michael Larkin on Twitter @IBD_MLarkin for more information on growth stocks and analysis.
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