The Dow Jones Industrial Average surged amid a broad rally as the bond market cooled. Meanwhile Senate Democrats look set to drop a controversial measure from the $1.9 trillion stimulus bill. Boeing (BA) and Apple (AAPL) were among the leading blue chips.
Among EV stocks, Tesla (TSLA) and Nio (NIO) charged higher following last week’s losses. Nio is posting earnings after the close. General Motors (GM) also rose. Bitcoin was also rallying, which propelled the Grayscale Bitcoin Trust (GBTC) higher.
X
Bond Market Cools; This Stimulus Measure Looks Dead
Monday’s advance was aided by a cooling on the 10-year Treasury notes yield. It slipped as low as 1.417% from 1.459% Friday. Yields fall when bond prices rise. This is a key gauge, as the 10-year serves as the benchmark borrowing cost in global debt markets.
Last week, the 10-year yield rose above 1.6% and spent significant time above 1.5%.
Meanwhile Senate Democrats are expected to abandon a plan to help raise workers’ pay by issuing tax penalties against corporations.
Democrats are looking to push President Joe Biden’s $1.9 trillion stimulus bill through the Senate after it was finally passed in the House at the weekend.
Sen. Bernie Sanders had proposed using a tax levy on businesses that pay workers below a certain threshold after the Senate parliamentarian ruled a proposed $15 per hour minimum wage could not be included in the Covid-19 relief bill under the budget reconciliation process.
Nasdaq, S&P 500 Surge
The Nasdaq was the best performing major index, gaining around 2.5%. Coronavirus vaccine play Zoom Video Communications (ZM) was the leading player, gaining almost 8%.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/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 Update: 1:22 PM ET 3/1/2021 |
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The S&P 500 was not far behind, up more than 2%. Nuclear power stock NRG Energy (NRG) performed best, gaining around 14%.
Volume was lower compared to the same time Friday. It fell more around 12% on the Nasdaq and by more than 25% on the NYSE.
The S&P sectors were having a very good day, with all posting gains. Financials and utilities were leading.
Small caps also made strong gains amid the bull charge, with the Russell 2000 up almost 3%.
But it was growth stocks that were faring best. The Innovator IBD 50 ETF (FFTY) was up over 4%. Digital Turbine (APPS) was the top IBD 50 performer, rising almost 13%.
Apple Stock Lifts Dow Jones
The Dow Jones Industrial Average made the lightest gain of the major indexes, but still rose almost 2%. It pulled further clear of its 50-day moving average.
Apple stock was among the biggest winners, rising more than 4%. The move helped it gain further ground on its 50-day line.
The relative strength line has been dipping for Apple stock. Recent poor performance has seen its IBD Composite Rating fall to 73.
But it was Boeing stock that was the standout component Monday. It was up more than 5%, and is closing in on a consolidation pattern buy point of 244.18. However, its Composite Rating highlights the challenges ahead, as it has slumped to a dismal 5 out of 99.
Tesla Stock, Nio Charge Higher
IBD Leaderboard stock Tesla was rallying strongly, gaining more than 5%. Last week TSLA fell more than 13%. It remains marooned beneath its 10-week line.
Tesla stock still remains well extended from a 466 buy point of a cup with handle. The firm has reportedly halted production of its Model 3 sedan at its Fremont, Calif., factory amid a global chip shortage that’s hitting the auto industry.
Chinese rival Nio made an even stronger gain, rising almost 9%. Nio is getting set to post earnings after the close.
A previous breakout from a cup base with a 57.30 buy point failed, and the stock is now well below this entry point.
GM stock also moved, rising more than 2%. This helped move further away from its 50-day moving average. It broke out from a cup base Jan. 12 on positive EV news. However, it has given up ground after a surge.
General Motors is the IBD Stock Of The Day due to its bullish rebounds from its 10-week moving average. This is a buying opportunity. It has also retaken its 21-day line and a trend line. The one caveat is that you’d like to see higher volume as shares rebound.
Li Auto (LI) also rallied, gaining more than 3%.
Bitcoin Rises; GBTC Stock Bounces Back
Bitcoin was coming back strongly. It surged from as low as just over $43,000 to back above the $49,000 level. It currently sits just above $49,000, according to CoinDesk. The price of Bitcoin is still well short of the record high of $58,332, which it reached Feb. 21.
Grayscale Bitcoin Trust was up almost 7%, though it surrendered some gains. GBTC stock plunged 23.8% last week, but is still holding above its 10-week moving average.
These Growth Stocks Breaks Out
Cooking equipment stock Middleby (MIDD) surged out of buy zone after breaking out of a consolidation pattern. The ideal buy point is 149.49.
The RS line hit a fresh high, but the stock boasts a lackluster EPS Rating of 49.
Madison Square Garden Entertainment (MSGE) slipped back below its buy point after breaking out of a short consolidation pattern. The ideal entry point is 111.56. The RS line has just reached a new high.
IPO stock Tern Pharmaceuticals (TERN) broke out of an IPO base. The ideal buy point was 23.78.
Given it is a young stock, its Composite Rating of 56 is not a useful guide at the moment. The company has yet to post a profit, but this is not unusual for such a young firm.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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