[ad_1]
The stock market reversed on Friday morning after the U.S. government avoided a shutdown, economic data improved and a trial of a Covid-19 treatment showed promise.
X
Late Thursday President Biden signed a bill that extends government funding until December 3, after Congress passed the bill at the eleventh hour before a deadline. The bill avoided a partial government shutdown. But lawmakers continue to wrangle over infrastructure and other major spending bills.
The stock exchange friday reduction of early earnings.
The indices opened higher but went into the red for a while. They then reversed higher. The Nasdaq is up 0.2%. The S&P 500 rose 0.5% and the Russell 2000 also rose 0.5%.
The volume was lower on the Nasdaq and higher on the NYSE compared to the same time on Thursday.
Merck Drug A possible breakthrough
Snapshot of the US Stock Market Today |
||||
|---|---|---|---|---|
| Index | symbol | Price | Loss of profit | % Switch |
| Dow jones | (0DJIA) | 34087.96 | +244.04 | +0.72 |
| S&P 500 | (0S & P5) | 4329.07 | +21.53 | +0.50 |
| Nasdaq | (0NDQC ) | 14476.36 | +27.78 | +0.19 |
| Russel 2000 | (ETC.) | 220.82 | +2.07 | +0.95 |
| MICI 50 | (FFTY) | 46.52 | -0.85 | -1.79 |
Last Modified: 11:40 AM ET 10/1/2021 |
||||
The Dow Jones Industrial Average rose 0.7% after Merck (MRK) climbed more than 9%, topping the buy point of 79.33 from a base. Merck and partner Ridgeback Biotherapeutics said a trial of their investigational drug Covid-19 showed it helped prevent high-risk patients from becoming seriously ill or dying.
Covid-19 vaccine manufacturer Modern (MRNA) collapsed to a loss of over 9%, sending the stock back to its base low. BioNTech (BNTX) slipped 14%. Novavax (NVAX), another vaccine maker, has plunged 20% and is below the 200-day line.
The news of the Covid drug has increased travel stocks. Airlines, travel reservations, accommodation, casinos and entertainment services were five of the top seven industry groups.
Travel stocks lead the stock market
Airlines shares rose after a three-day losing streak. US Global Jets (JETS), an ETF that tracks airline stocks, jumped 3.6%.
Southwest Airlines (LCV) jumped 5% after JPMorgan upgraded the discount carrier from neutral to overweight and raised the target price from 64 to 70. Southwest stocks are correcting and trying to move above average 200-day mobile.
Delta Airlines (OF), Gol Intelligent Airlines (GOAL), Hawaiian (HE OWNS), United Airlines (UAL), Blue (BLUE) and Frontier Group (ULCC) also increased by more than 5%. But they remain deep in the price corrections.
Hotel, Casino Stocks Rallye
Reserve assets (BKNG) is heading for a buy point of 2,516.10. Hilton around the world (SDJ) regained a buy point of 136.99. Wyndham Hotels & Resorts (WH) is near a buy point of 78.23. Caesars Entertainment (CZR) was the best performing stock in the IBD 50 this morning, up 4%.
Memes Stock AMC Entertainment (AMC) rose more than 3% after buying back $ 35 million in debt for lower interest charges. The stock is trying to regain the 50-day moving average as it goes through a deep decline.
IBD 50 Innovative ETF (FFTY) has slipped more than 3% and is near the 200-day moving average. Covid vaccine manufacturer Dynavax Technologies (OF THEM) was the worst performer, down 12%.
Jefferies Financial Group (I F) increased by 2% but reduced earnings. The financial services company beat earnings and revenue expectations for the quarter ended in August. Strong investment banking activity supported results. The title found support for its 10 week line.
Personal expenses, income increase in August
On the economic news side, personal spending rose 0.8% in August and income rose 0.2% from July. The expense figure was slightly higher than Econoday’s consensus estimate, while personal income was slightly lower than expected.
Sal Guatieri, senior economist at BMO Capital Markets, called this a partial rebound for consumers after a weak July. Real spending rose 0.4% after a revised 0.5% drop in July.
“Even with another decent gain in September, the low starting point suggests real spending will decline to about 1% annualized in the third quarter from the blistering 12% pace in the second quarter,” Guatieri said in a note. .
The personal consumption expenditure price index warmed, with core PCE advancing 0.3% for a second consecutive month. That kept the annual base rate at 3.6%, the highest since 1991, the economist said. “While increasing less than in the spring, short-term measures are worrying, with the six-month annualized rate at 5.6% and the three-month pace at 4.6%.”
Juan Carlos Arancibia is IBD’s Markets Editor and oversees our market coverage. Follow him on @IBD_jarancibia
YOU MAY ALSO LIKE:
IBD Market Outlook: A Guide to Different Designations
Receive Free EIA Newsletters: Market Preparation | Technical report | How to invest
What is CAN SLIM? If you want to find winning stocks, you better know
[ad_2]
Source link