The Dow Jones Industrial Average gained as the Nasdaq rebounded in a session where stocks were seeking direction. Airline stocks took off on upbeat bookings data, while Apple (AAPL) and Nike (NKE) were the top blue chips.
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However a Covid vaccine has been suspended in major European nations including Germany and France amid concerns over blood clots.
Delta Air Lines (DAL), American Airlines (AAL) and United Airlines (UAL) all turned in strong gains as travelers return to the skies. Among EV stocks, Tesla (TSLA) edged higher even as Nio (NIO) hit reverse.
Germany, France Suspend Vaccine
The biggest EU nations moved Monday to suspend rollouts of the Oxford-AstraZeneca (AZN) Covid vaccine. Germany, France, Spain and Italy made the move after a string of incidents in Europe involving blood clots. AstraZeneca shares were flat.
While the The World Health Organization says there is no evidence the vaccine, which is not approved for use in the U.S., caused the incidents, the EU nations have decided to wait while safety checks are made. A number of smaller European countries, including Denmark, the Netherlands and Norway, had already suspended the jab.
Meanwhile, the 10-year Treasury yield slipped back somewhat, but was holding above the 1.6% mark. Yields move inversely to bond prices.
The Federal Open Market Committee is set to meet on Tuesday and Wednesday. Investors will look to see if it alters its outlook on interest rates. Federal Reserve Chairman Jerome Powell may adopt a more proactive tone to soothe market worries.
Nasdaq Rallies; S&P 500 Flat
The Nasdaq managed to rally out of the red, and was the best performing major index. It rose a slender 0.3%. NXP Semiconductors (NXPI), which is being added to the S&P 500, performed best, rising almost 8%.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/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 Update: 1:14 PM ET 3/15/2021 |
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The S&P 500 was barely in the green. Outside of airline stocks, Gap (GPS) performed best with a gain of almost 7%.
Volume was higher compared with the same time Friday. Trading rose around 13% on the Nasdaq and inched up 3% on the NYSE.
The S&P sectors were mixed, with utilities and real estate leading. The biggest laggards were financials and energy.
Small caps were fighting back, though the Russell 2000 was up a mere 0.1%.
Growth stocks managed to rally out of the red, with the Innovator IBD 50 ETF (FFTY) up around 0.3%.
Apple Stock Up As Dow Jones Rises
The Dow Jones Industrial Average made its way back into positive territory after spending much of the session in the red. It posted a gain of less than 0.1%.
Apple stock was among the best performing components, rising around 1.3%. It allowed the stock to move further away from its 200-day moving average.
Its next objective will be to retake its 50-day line. It slipped below the benchmark after a cup-base breakout failed, MarketSmith analysis shows.
Nike was performing even better, posting a gain of around 3%. Nike stock is forming a new base. The flat base is offering up a buy point of 148.05.
Nike earnings are due Thursday. An approach highlighted by Investor’s Business Daily is to use options as a strategy to reduce risk around earnings.
Airline Stocks Take Off On Bookings Boost
Airline stocks took off after carriers reported higher bookings, while the Transportation Security Administration said screenings rose to the highest levels in a year.
The TSA said it screened more than 1.34 million people Sunday. This is 86,000 more people than the same day last year, but 45% below the same date in 2019.
Delta Air Lines and JetBlue Airways (JBLU) said bookings have risen this month as more people got vaccinated. Delta Air Lines rose around 3%. JetBlue was up more than 5%. American Airlines popped more than 7% and United Airlines fared even better, with a rise of more than 8%.
Southwest Airlines (LUV) posted a more marginal gain of around 1.5%.
While airline stocks are recovering, overall traffic levels, or revenue passenger miles, remain well below pre-pandemic levels. Business travel in particular is expected to lag the rebound in leisure travel as more people work at home.
IBD Stock Of The Day Nears Buy Point
Applied Materials (AMAT) is the IBD Stock of the Day as it nears a new buy point.
The company plans to host an investor day April 6, where updated long-term guidance could be a catalyst for AMAT stock
AMAT stock bounced off the 10-week line last week, a bullish signal. The 10-week line represents the average closing price over the 10 past trading weeks.
Demand for chips for cloud-computing data centers, 5G wireless handsets and automobiles has been driving sales of its equipment. Demand for flat-panel display manufacturing gear, however, has been weak.
Find out more about AMAT stock in Monday’s Stock Of The Day column here.
Tesla Stock Rallies, Nio Stock Reverses
Tesla stock was rallying again, posting a gain of around 1.5%. It comes after it rallied 16% last week.
Tesla’s RS line is improving after a recent plunge, and the stock is moving back toward its 50-day moving average.
Tesla stock previously crashed through its 50-day line, but good overall performance means it holds a Composite Rating of 94. Tesla stock’s recent poor performance saw it lose its spot on Leaderboard.
However, its Chinese rival Nio hit reverse gear, giving up almost 2%. It is taking a breather after last week’s gain of more than 19%.
Nio stock remains marooned below its 50-day moving average, but is now well clear of its 200-day line. The stock collapsed after a breakout from a 57.30 entry failed.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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