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The Dow Jones Industrial Average slid lower after Treasury Secretary Janet Yellen issued an inflation warning. Meanwhile, Galactic Virgo (SPCE) has dipped again and is on track for a massive weekly decline. Memes Stock AMC Entertainment (AMC) also faces a weekly dip.
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Modern (MRNA), meanwhile, jumped on news of its addition to the S&P 500, while related stocks BioNTech (BNTX) has continued to rise from the 10 week moving average support.
Yellen warns about inflation
The stock market was down on Friday following Yellen’s comments on inflation.
“We will still have several months of rapid inflation,” senior administration member Biden told CNBC. “So I’m not saying it’s a month-long phenomenon.”
However, she also said that in the medium term, she believes inflation will “come down to normal levels”. The former chairman of the Federal Reserve also promised that she would keep “a watchful eye” on inflation.
The 10-year Treasury yield edged up to 1.305%. Yields move in the opposite direction to bond prices.
Shares fell despite positive retail data. The Commerce Department said retail sales jumped 0.6% in June, well above expectations of a 0.4% drop. It was also much better than May’s 1.3% drop. Excluding vehicles, sales jumped 1.3%, excluding forecasts of a 0.5% increase. It also reversed from May’s 0.7% drop.
Nasdaq, fall of the S&P 500
The Nasdaq performed better among the major indexes, but still fell around 0.6%. Ribbons (CTAS) was the best performer with a gain of over 4%, while Trip.com (TCOM) is doing the worst with a loss of just over 4%.
The S&P 500 was almost at the Nasdaq’s level, shedding 0.6%. Teleflex (TFX) was among the stars here, gaining over 3%. But the stock fell nearly 10% on Thursday. Norwegian Cruise Line (NCLH) was the worst laggard on the S&P 500 due to a decline of nearly 5%.
Snapshot of the US Stock Market Today |
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|---|---|---|---|---|
| Index | symbol | Price | Loss of profit | % Switch |
| Dow jones | (0DJIA) | 34732.87 | -254.15 | -0.73 |
| S&P 500 | (0S & P5) | 4333.70 | -26.33 | -0.60 |
| Nasdaq | (0NDQC) | 14462.51 | -80.62 | -0.55 |
| Russel 2000 | (IWM) | 215.73 | -1.90 | -0.87 |
| MICI 50 | (FFTY) | 42.19 | -0.17 | -0.40 |
Last updated: 2:52 PM ET 7/16/2021 |
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S&P sectors were mixed, led by utilities and real estate. Energy and materials were the worst.
Small caps fell again, with the Russell 2000 falling about 0.6%. Growth stocks were also forced to fall again, with ETF Innovator IBD 50 (FFTY) down 0.4%.
Dow Jones plunges as Amgen stock leads
The Dow Jones Industrial Average slipped nearly 8%.
Amgen and Procter & Gamble (PG) were the best performers, with Amgen up 0.7% and Procter & Gamble up 1.1%.
Amgen is well below a flat base buy point of 261.10, according to MarketSmith analysis. The PG stock is in a buy zone from a flat base entry of 139.20. Chemical stock Dow Inc. (DOW) was the biggest laggard, slipping around 3%.
Virgin Galactic and AMC shares take big losses
Virgin Galactic shares extended losses, this time down around 5%. It has plunged all week following the news of a large stock offering and is on track to post a weekly decline of nearly 40%.
The sharp drop in SPCE shares began after the company revealed in a regulatory filing that it planned to sell up to $ 500 million in shares. This caused Virgin Galactic shares to drop sharply, even though the company made its first full crew flight last weekend.
Some of the most well-known memes stocks were also on their way to a painful bear spanking. AMC stock, the region’s current big beast, was up about 1.5% for the day.
But that means he’s on track for a weekly loss of more than 20%, his fourth week of decline in a row. It is also set to close the week below the key 50-day moving average. Despite its stark downside, the stock still has a perfect relative strength rating of 99.
GameStop also advanced for the day, increasing by around 5%. If it fails to recover, it will show a weekly loss of around 8% and fall for the sixth week in a row.
Moderna Stock Pops, BioNTech Pass Buy
The Moderna Covid-19 vaccine game was charging more when it announced its S&P 500 membership. Stock rose more than 9% in a high-volume move.
Moderna’s stock is greatly expanded from a point of purchase of 189.10 a mug with handle. Biotech will join the S&P 500 on Wednesday, replacing Alexion Pharmaceutical (ALXN).
Meanwhile, BioNTech is in a buy zone after breaking a trendline after a recent pullback near 222. It is bouncing off its 10-week moving average.
Although the stock market performance is its strong point, it also posts decent profits. The Covid vaccine share posted a profit of $ 5.15 per share in the most recent quarter, down from a loss of 26 cents the year before.
The bullish move saw the stock join the prestigious IBD ranking of top growth stocks.
Please follow Michael Larkin on Twitter at @IBD_MLarkin to learn more about growth stocks and analysis.
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