Banking

Dow Jones Rises, Nasdaq Sells Off; Logistics Stocks Show Strength Amid Economic Recovery

The Dow Jones Industrial Average traded higher in today’s stock market, while the Nasdaq composite led on the downside and was the only index trading lower. The S&P 500 held a modest gain Monday, after closing out its best month since November on Friday.




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About an hour before the close, the small-cap Russell 2000 was up 0.8%. Meanwhile, the Nasdaq was down 0.4%. The S&P 500 traded up 0.4%. The Dow Jones industrials gained 0.8%, leading on the upside. Data showed volume higher on the Nasdaq and the NYSE vs. the same time on Friday.

As for growth stocks, the Innovator IBD 50 ETF (FFTY) gained 0.5%. The growth-focused index is now trading back above its 50-day line as it forms a new consolidation with a 50.06 entry. IBD 50 stocks leading the upside on Monday were BioNTech (BNTX) and Green Brick Partners (GRBK), with gains of more than 7% each.

Coronavirus vaccine maker BioNTech remains well extended from a 131.10 buy point from a long consolidation.

Stocks were mixed on Monday as the 10-year Treasury yield faded slightly to 1.61% after manufacturing data came out.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 34154.10 +279.25 +0.82
S&P 500 (0S&P5) 4198.80 +17.63 +0.42
Nasdaq (0NDQC ) 13916.18 -46.50 -0.33
Russell 2000 (IWM) 226.81 +1.92 +0.85
IBD 50 (FFTY) 47.08 +0.46 +0.99
Last Update: 3:18 PM ET 5/3/2021

IHS Markit reported its final manufacturing purchasing managers index for April at 60.5. That’s a step up from March’s 59.1 reading, but just slightly below expectations of 60.6. The ISM Manufacturing Index also came in below expectations. It registered 60.7 in April, while the consensus was for 65, according to Econoday data. However, March’s number of 64.7 was the index’s highest reading since 1983, showing a very strong recovery in the manufacturing sector.

The overall strength in the manufacturing sector sent nearly all stocks in the transportation logistics industry group higher on Monday. Logistics stocks appear to be a promising way to play the recovery as the global economy picks up speed amid a post-pandemic world.

Among the handful of logistics stocks rising more than 1% was freight forwarding stock Expeditors International (EXPD), which traded above a three-weeks-tight buy point. Shares were up over 3% in afternoon trading.

The stock is set to report first-quarter earnings on Tuesday.

Stocks Above Buy Points

A few other stocks also traded above buy points including CarMax (KMX), Lamar Advertising (LAMR) and AbbVie (ABBV).

CarMax recently formed a flat base with a 136.64 buy point. On Monday, the growth stock traded above the lower edge of the 5% buy zone, which tops out at 143.47. CarMax operates 160 used car stores in more than 70 metropolitan markets.

Shares of Lamar Advertising rose above a 100.48 buy point from a flat base. Shares traded within the 5% buy zone after rising more than 2%. Investors should note that the billboard operator reports earnings Tuesday morning before the market opens.

Elsewhere, AbbVie traded within the buy zone from its 113.51 flat base buy point. Shares gained nearly 3% after reporting better-than-expected earnings late Friday. The company develops pharmaceutical products to treat immunology, virology, Oncology and other diseases.

Dow Jones Today

As for the Dow components, chemicals company Dow (DOW), IBM (IBM) and Walgreens (WBA) led the upside with gains of over 2% each. Shares of Salesforce.com (CRM), Visa (V) and Intel (INTC) led on the downside.

Apple (AAPL) was also a top gainer, rising over 1%. Shares are approaching a cup-with-handle buy point of 135.63, according to MarketSmith analysis. However, the stock’s RS Rating of 53 is less than ideal for growth stocks breaking out. Investors may also want to wait for the stock’s RS line to show more strength.

Elsewhere, Dow Jones financial stock Goldman Sachs (GS) traded up over 1% as well on Monday. Shares are approaching a new cup-based buy point of 356.95 and remain 1% away from the proper entry. The stock maintains a strong 85 RS Rating and a near-perfect 98 Composite Rating.

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