Driven by the strong March non-agricultural employment report released during the holiday on Friday, the stock market entered its first full trading week in April on Monday. Airlines, casinos and semiconductors all contributed to the early growth. After exceeding the delivery target for the first quarter, Tesla led the rally of electric car manufacturers. Boeing bought on the Dow Jones Index today.
The Dow Jones Industrial Average briefly rose by 300 points, or 0.8%, setting a new record high. The S&P 500 index rose 0.9% in the stock market today, bringing it to a record high, breaking through 4,000 points. The Nasdaq Composite Index rose 1.1%, which gave it more breathing room above its 50-day moving average.
Tesla TSLA (TSLA) rose nearly 5% after the company reported on Friday that its first-quarter deliveries easily exceeded expectations. Tesla stock is trying to start the right side of a three-month merger, but is seeking resistance at its 21-day exponential moving average.
Other electric car manufacturers have mixed ups and downs in early trading, Ford (F) After delivering more than 6,600 Mach-E Mustangs during the quarter, it increased by 1.9%. IBD ranking stocks General Motors (GM) rose 2.9% in early trading. Among the electric car manufacturers in China, o (NIO) increased by 0.5%, while Xpeng (XPEV) fell 1.2%. Lee Motors (LI) also fell, down 0.3%.
Caesars Entertainment (CZR) rose 4.3%, while MGM International Resort After Morgan Stanley (MGM) raised both stocks to overweight, its stock price rose 6.5%. Airlines also showed early strength, United Airlines Holdings (UAL) and American Airlines Group (AAL) each rose by 4%.
Steel manufacturer Cleveland cliffs (CLF) rose 3.8% in early trading. IBD 50 stock broke through the 18.87 buy point on Wednesday based on the 11-week cup, and ended Thursday’s trading within the buying range.
Salary report exceeded the target
According to data released by the Labor Department during the Good Friday holiday, 916,000 jobs were added in March, and the figures for January and February were revised upwards significantly. This combination raised the unemployment rate to 6.0% and boosted the “high-risk” sentiment that investors showed late last week.
The 6% unemployment rate has met expectations, but the 916,000 statistic is much higher than the expected growth of 625,000 workers. The number of non-agricultural employment is still 8.4 million less than the peak of 152.5 million in February 2020.
Boeing buys range at Dow Jones today
Boeing (BA) rose 2.1%, leading the decline in the Dow Jones Index. The IBD ranking stocks settled a buying basis point of 244.18 in early March, and then fell back to retest that point and the support level of the 21-day exponential moving average.
The rebound from the 21-day support level put Boeing stock at the low point of the buying range, extending to 256.39.
Microsoft (MSFT) is another Dow Jones stock on the Dow Jones list, which rose 0.6% in early trading on Monday. This makes the prices of heavyweight software developers and cloud service providers less than 1% lower than the purchase point of 246.23 on a six-week flat basis.
TSMC reverses, chip inventory rises
TSMC (TSM) topped the rankings in pre-market trading, but fell by 0.1%. The stock blocked a five-week correction last week and rose sharply on Thursday after announcing a $100 billion plan to expand Taiwan’s semiconductor production capacity over the next three years.
This news boosted chip inventories as a whole, with chip equipment manufacturers getting the biggest boost. Applied Materials (AMAT) and Forest Research (LRCX) traded at Monday’s high of the Nasdaq 100 Index, up 1.1% and 1.3% respectively.
iShares PHLX Semiconductor (SOXX) rose 0.9%, and VanEck Vectors Semiconductor ETF (SMH) rose 0.6% in early trading. Both ETFs are below the buying point of the basic pattern. The purchase price of the PHLX fund is 444.07. VanEck Fund’s buying point is 258.69.
Oil, copper, bonds, bitcoin
Oil prices plummeted, and West Texas Intermediate oil fell more than 2%, but remained above $60 per barrel. Copper prices rose 2.8% to above $4.10 per pound. Copper prices hit a 10-year high of $4.30 in February.
Bonds were effectively flat, and the 10-year Treasury bond yield rose by 1 basis point to 1.73%. Yields have rebounded rapidly from the record low of 0.50% in August. Last week, they avoided pre-pandemic levels and climbed to more than 1.76%, the highest level since January 2020. The return rate starting in 2020 is about 1.8%, which is lower than the 2.7% in the same period last year.
Stock market ETF strategy and how to invest in the current upward trend
The Hong Kong market remains closed on Monday and Tuesday, and plans to restart on Wednesday. The stock exchanges in Shanghai, London, Frankfurt and Paris reopened on Tuesday.
Earlier on Monday, Bitcoin fell slightly, dropping 0.3% to below $58,000. According to CoinDesk. On March 13, the cryptocurrency climbed to a record high of $61,556.
Biotech companies lead early small-cap rally
Small trading volumes were strong in early trading, with Russell 2000 rising 1%. Biotechnology and pharmaceuticals helped promote the early development of small-cap stocks.Russell 2000 stock reluctantly (NVTA) shares rose 8% after the company announced a $200 million acquisition.In addition, Japanese SoftBank Group (SFTBY) acquired US$1.1 billion of shares in the company in the form of convertible senior debt. Softbank shares soared more than 5%.
Also in Russell 2000, Pharmaceutical Shrine (SUPN) jumped 8.2%, Pacific Biosciences (PACB) rose 5.7%.
The VanEck Vectors Biotechnology ETF (BBH) trails ordinary shares by 0.3%.
Nano-X imaging (NNOX) rose 35% in open trading after announcing its single-source Nanox last Friday. ARC digital X-ray technology has received 510(k) license from the US Food and Drug Administration. The Israeli company’s Nanox.ARC technology emits less radiation than traditional X-ray technology.
Newly issued shares in August ended Thursday at 130% higher than the initial issue price in August, and were down 56% from the January peak.
Dow Jones Today: Strong first quarter
The healthy gains on Wednesday and Thursday brought the Nasdaq back to above its 50-day moving average and 21-day exponential moving average. The Standard & Poor’s 500 Index is at a new high above 4,000 points.
At the same time, after three days of flat trading, the Dow Jones Index is today below its high point a week ago. In the first quarter and so far this year, the Dow Jones Index has risen 11.3%, almost twice the 5.8% gain of the S&P 500. The Nasdaq index rose 2.7%.
Nearly 7% of the Dow Jones index’s rise occurred in March. The Standard & Poor’s 500 Index rose 4.4% that month, while the Nasdaq Index rose 0.4%. The Nasdaq Index has contracted abnormally for the third consecutive month.
A more detailed analysis of the current stock market and its state, Research the big picture.
The strong gains on Wednesday and Thursday sent a bullish follow-up signal, and the state of the market returned to a definite uptrend. But it is worth noting that the monthly closing price of Nasdaq is very tight. They show that institutional investors have nothing to do, and may be waiting to see how Treasury yields work, or they are waiting for the Biden administration to prove that it can advance budget and policy plans in a tightly divided Senate.
Currently, the Nasdaq’s support level above its 50-day line is temporary, and the 13,600 level may bring additional resistance. One or two days of gains will give the upward trend a certain profit margin and may narrow the gap between the Nasdaq, the S&P 500 and the Dow Jones Industrial Average. Nasdaq will then face 14,000 points again, which briefly broke through in February before going down again.
Find Alan R. Elliott on Twitter @IBD_Aelliott
You may also like:
Chip gear stocks surge in Taiwan’s semiconductor spending plan
Why use this IBD tool to simplify the search for popular stocks
The best growth stocks to buy and watch
IBD Digital: Unlock IBD’s advanced inventory lists, tools and analysis today