Dow Jones Slips But Nasdaq Advances As These Covid Stocks Hit New Highs

Stocks were mixed Monday as the Nasdaq advanced, but the Dow Jones Industrial Average and S&P 500 backed off from Friday’s record highs.


The Dow Jones industrials dipped 0.2% after closing at a new high Friday. The S&P 500 gave up 0.1% and the Nasdaq was 0.2% higher in the stock market today. Small caps tracked by the Russell 2000 were down 0.3%. Volume was lower on both major exchanges vs. the same time Friday.

Among exchange traded funds, Innovator IBD 50 (FFTY) climbed 0.7%, while the Nasdaq 100-tracking Invesco QQQ Trust (QQQ) edged up 0.1%.

The U.S. economy continues to recover from the Covid-19 pandemic, which triggered nationwide lockdowns over a year ago. Most states had relaxed restrictions as vaccinations continued to roll out and cases decreased. But mask mandates are returning in some areas as the delta variant spreads.

Cumulative Covid-19 cases worldwide are approaching 204 million, with over 4.3 million deaths, according to Worldometer. In the U.S., cases have surpassed 36.5 million with over 633,000 deaths.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 35123.38 -85.13 -0.24
S&P 500 (0S&P5) 4432.70 -3.82 -0.09
Nasdaq (0NDQC ) 14864.63 +28.87 +0.19
Russell 2000 (IWM) 222.84 -0.55 -0.25
IBD 50 (FFTY) 46.50 +0.32 +0.69
Last Update: 1:40 PM ET 8/9/2021

Although the numbers of new cases and deaths in the U.S. have decreased dramatically, cases are back on the rise in some states due to delta.

Covid-19 Stocks Rally

Among Covid-19 vaccine makers, BioNTech (BNTX) gapped up and soared 13% in fast trade, on track for a new high. Early Monday, Q2 results for the German biotech and Pfizer (PFE) partner easily beat Wall Street targets. Pfizer added 1.2%.

BioNTech stock has reached the 20%-25% profit goal from a 252.88 buy point of a cup base, according to IBD MarketSmith chart analysis. But the IBD Leaderboard stock has also triggered the eight-week hold rule due to its rapid ascent.

Moderna (MRNA) surged 15% in heavy volume to a new high. The Massachusetts-based biotech said its Covid-19 vaccine was granted provisional registration in Australia for people 18 and older. Australia has already secured 10 million doses for this year and has an option to buy 15 million next year. Moderna stock has soared more than 140% from its last buy point cleared in June.

Growth Stock Movers

Moderna led the IBD 50, followed by DLocal (DLO) and Upstart Holdings (UPST), up more than 5% each. Freedom Holding (FRHC) and Kulicke & Soffa (KLIC) added over 3% apiece.

DLocal, an Uruguay-based payment platform provider, has advanced 140% since going public on the Nasdaq June 3 at 21 a share. It may be consolidating again, after breaking out from a short IPO base in mid-June.

San Mateo, Calif.-based lending platform Upstart rallied 5.3%, on pace for a fourth straight weekly advance. The stock regained its 10-week moving average last week.

Kazakhstan-based brokerage Freedom gapped up and rose 3.7% in heavy trade. Shares are about 3% away from a 68.90 buy point of a five-week flat base. Freedom earns a 98 Composite Rating, which leads the 32-stock investment bank and brokerage group.

The biggest IBD 50 losers included Cricut (CRCT) and Lightspeed POS (LSPD), down about 4% each. Cricut tumbled below its 50-day line, though volume was light. Analysts expect Cricut to earn 20 cents a share on roughly $319 million in revenue when it reports Thursday after the close.

Tesla (TSLA) gained 2.3% Monday to recoup more than Friday’s loss. Jefferies upgraded the electric-vehicle giant to buy from hold early Monday, and boosted its price target to 850 from 700. Tesla stock continues to rebound off support at its 50-day and 200-day lines.

Dow Jones Winners And Losers

Goldman Sachs (GS) led the blue chip index with a 1.2% advance to hit a new high. Shares remain in potential buy range from a 393.36 entry of a flat base. The buy zone goes up to 413.03.

Intel (INTC) climbed nearly 1%. But Chevron (CVX) and Visa (V) gave up more than 1% each. West Texas intermediate crude prices slid nearly 3% to $66.42 a barrel.

Amgen (AMGN) and UnitedHealth (UNH) were down about 1% apiece. Amgen has been trading well below its 50-day line since Wednesday, when shares gapped down and sank 6.5%. Early last week, the biotech giant reported Q2 earnings and sales that beat analyst targets but lowered its outlook for the full year.

Disney (DIS), which reports quarterly results late Thursday, fell 0.7%. Disney stock has been consolidating for nearly five months but has hit recent resistance at its 10-week line. It’s about 13% away from a 203.12 buy point.

Follow Nancy Gondo on Twitter at @IBD_NGondo


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Harry Byrne

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