Dow Jones rallies as retail sales excel; Moderna plunges into this delay in vaccination; Craters of the Galactic Virgin
The Dow Jones Industrial Average rallied amid strong retail data and declining profits for Goldman Sachs (GS). Moderna (MRNA) has fallen amid reports that approval of its Covid vaccine for adolescents is being delayed due to fears of heart problems. Galactic Virgo (SPCE) dived on a delay, while American Express (AXP) was another top blue chip.
Stocks were boosted after September retail sales were much better than expected.
The Commerce Department said sales rose 0.7% in September, while analysts expected a decline of 0.1%. The Commerce Department also revised its August sales figures up to 0.9%.
However, September’s sales figure of 0.7% less vehicles and gasoline was in line with expectations.
Nasdaq makes small gain, JB Hunt shares rise
The Nasdaq lagged behind other major indexes, rising about 0.4%. Hotel park Marriot International (MAR) is doing the best, with an increase of over 3%.
The S&P 500 is doing better than the Nasdaq, up 0.6%. JB Hunt Transport Services (JBHT) was the best dog here, increasing by almost 10%. It broke a buy point of 184.48 on a flat basis, according to MarketSmith chart analysis.
Snapshot of the US Stock Market Today
|Index||symbol||Price||Loss of profit||% Switch|
|S&P 500||(0S & P5)||4464.96||+26.70||+0.60|
Last updated: 1:30 p.m. ET 10/15/2021
The S&P 500 sectors were mostly green, led by consumer discretionary and financials. Consumer staples were the worst laggards.
Small caps grew only slightly, despite the strength of financials. The Russell 2000 gained nearly 0.3%.
Growth stocks are doing a little better. The Innovative ETF IBD 50 (FFTY) increased by 0.3%.
Dow Jones Today: Goldman Sachs Gains, AXP Gains
The Dow Jones Industrial Average is doing the best among the major indices, up about 0.9%. It managed to climb back above its 50-day moving average. Closing the day above would be a positive decision.
Goldman Sachs was in contention to be the first Dow Jones title of the day, up nearly 3%. It increased in volume and rallied bullish to its 50-day moving average. The stocks continue to operate on a flat basis with a buy point of 420.86.
Early Friday, Goldman reported Q3 results that easily exceed expectations. Goldman earned $ 14.93 per share on revenues of $ 13.62 billion, well above Wall Street targets for $ 9.99 EPS on sales of $ 11.7 billion. The investment bank’s income soared 88% to $ 3.7 billion.
He was playing for the top spot with American Express stock. The payout game increased by about the same amount, and the top position shifted between the two.
The AXP share is close to a point of purchase of 178.90 cups with handle, according to MarketSmith.
Moderna Stock Plunges Amid Covid Vaccine Delay
Moderna stock sold off gains and reversed lower on a Wall Street Journal report, FDA is delaying approval of its Covid vaccine use in adolescents.
The agency has reportedly delayed its decision to expand use of the treatment to 12- to 17-year-olds while it investigates the risk of rare heart disease.
It comes after four countries in Scandinavia took a stand against administering the vaccine to young people last week.
Moderna had already benefited from it after an FDA panel recommended a booster dose of its Covid-19 vaccine for people 65 years of age and older, as well as those at high risk.
Moderna stock has fallen more than 3% and remains below its 50-day moving average. Its short-term moving averages are also falling.
Corn Johnson & johnson (JNJ) increased by almost 1%. FDA advisers have approved a recall for its Covid-19 vaccine. They unanimously recommended that all adults who received a first dose of the vaccine receive the second dose at least two months later.
Virgin Galactic stock craters on this
Virgin Galactic shares plunged after the firm announced another delay. While at the low of the day, SPCE shares remained down more than 15%.
The company, founded by billionaire Sir Richard Branson, has announced that it will delay the launch of its commercial space service until the fourth quarter of 2022.
It was previously scheduled to take off in the third quarter of that year.
Virgin Galactic will use this time to further improve its space vehicles. So far 2021 has been wild for the SPCE stock, but it is now down almost 20% for the year.
The move comes after rival Blue Origin, which is backed by Amazon (AMZN) founder Jeff Bezos, made waves by sending Star Trek actor William Shatner into space.
5 points to purchase share passes
According to MarketSmith’s analysis, Boot Barn is in a buy zone after breaking out of a rare bottom-up base pattern. The entry point here is 99.74.
Retail inventory, which sells western and work clothing, benefited from strong retail sales. He sees strong earnings and price performance.
Saia is subject to action after exceeding a fixed base buy point of 259.23. The trucking company is seeing its relative strength increase amid the demand for transportation.
However, the income is due in 13 days making the purchase riskier now.
One approach highlighted by Investor’s Business Daily is to use options as a strategy to reduce profit risk. It is a way to capitalize on the upside potential of a stock’s earnings trend, while reducing downside risk.
Bancorp East West (EWBC) rose above a consolidation model buy point of 82.63. Payouts are also imminent here, making it a potential options game. Overall performance, however, is solid.
Nordson (NDSN) managed to break through a flat-based buy point of 246.01. However, the volume was light. The adhesives and sealants game is performing well, but it only makes it into the top 26% of stocks in terms of market performance in the past 12 months.
Textainer Group (TGH) is in a shopping area after escaping from a cup base. The buy point here is 36.90, and volume was solid on this move. Textainer, which shows top-notch profits and market performance, focuses on the purchase, rental and resale of ocean freight containers.
Please follow Michael Larkin on Twitter at @IBD_MLarkin to learn more about growth stocks and analysis.
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