The Dow Jones Industrial Average was lower as stocks fell despite President Joe Biden’s promise that the U.S. will have enough Covid-19 vaccines for all Americans ahead of schedule. Weak jobs data and a rise in the 10-year Treasury yield weighed on indexes.
Boeing (BA) and Walt Disney (DIS) were among the top blue chips. Bitcoin was surging, sending the Grayscale Bitcoin Trust (GBTC) higher. Among EV stocks, Tesla (TLSA) and Nio (NIO) moved higher, while auto giants General Motors (GM) and Ford (F) fell.
Biden Makes Vaccine Pledge
President Biden has said the U.S. will have enough coronavirus vaccines for every adult by the end of May, two months earlier than expected.
He also hailed the way private enterprise was aiding the rollout, calling it “the type of collaboration between companies we saw in World War II.”
There has been a sharp decline in the number of confirmed cases since the beginning of 2021. The current figure of just under 68,000 is well shy of the Jan. 8 peak of 300,000.
However Biden said Americans must stay vigilant as “it’s not over yet.”
Job Data Falls Short; Yields Rise Again
Meanwhile, private payrolls increased 117,000 in February, according to a report from ADP released early Wednesday. This was well below the 165,000 Econoday consensus estimate. The Labor Department will report February’s official jobs data on Friday.
The 10-year Treasury yield also inched higher to 1.47%. Stocks slipped after the yield surged to a high of 1.6% last week.
The Nasdaq was the worst performing major index, down 1.5%. Pinduoduo (PDD) was the top Nasdaq performer, rising more than 3%.
U.S. Stock Market Today Overview
Last Update: 9:54 AM ET 3/3/2021
The S&P 500 was faring slightly better, but was down 0.8%. Cruise ship stock Carnival (CCL) was the best performer, rising almost 6%. Norwegian Cruise Line (NCLH) was also making stout gains.
Volume was mixed compared to the same time Tuesday. It rose around 20% on the Nasdaq and fell more than 90% on the NYSE.
The S&P sectors were coming under pressure, with more losers than winners. Energy and financials were leading.
Small caps were bucking the downward trend, but barely. The Russell 2000 rose less than 0.1%.
Growth stocks were struggling, with the Innovator IBD 50 ETF slipping around 1.3%.
Boeing, Disney Stock Help Dow Jones
The Dow Jones Industrial Average was the best performing major index, down 0.2%
Boeing was the top component, jumping more than 3%. The stock is closing in on a cup base buy point of 244.18. One reason to be wary is its abysmal EPS Rating of 4.
Meanwhile Disney stock was another notable performer, rising around 1.5%. Disney stock is near buy range from a flat base after running past a buy point of 183.60. Disney is a recent IBD Stock Of The Day. It was also added to Swing Trader after bouncing off its 21-day exponential moving average.
Tesla Stock, Nio Stock Gain
IBD Leaderboard stock Tesla was rallying in a whipsaw session. It was up around 0.4%. Last week, Tesla fell more than 13%. It remains marooned beneath its 10-week line.
Tesla stock has been affected by the chip shortage hitting the auto industry. It reportedly halted production of its Model 3 sedan at its Fremont, Calif., factory. The stock remains well extended from a 466 buy point of a cup with handle but has made sell signals.
Chinese EV stock Nio was up almost 2%, though it pared some gains. It is looking to bounce back after a sharp decline Tuesday following its disappointing earnings report. The firm has also warned the global chip shortage will slow production.
GM Stock, Ford Stock Reverse
GM stock reversed mildly after opening higher. It is down around 0.4% GM stock broke out from a cup base Jan. 12 on positive EV news, though it has pared gains after a surge.
General Motors was Monday’s IBD Stock Of The Day due to its bullish rebound from its 10-week moving average. This set up a potential buying opportunity. It also retook its 21-day line and a trend line.
Meanwhile Ford stock fell almost 2%. But it remains above the 12.50 buy point of a four-weeks-tight pattern. The relative strength line for Ford stock is near a 52-week high.
The auto giant is also looking to tap the EV market. Ford announced the immediate launch of the Mustang Mach-E electric crossover in Europe amid plans to go “all-in” on electric vehicles there. It is also an investor in electric truck maker Rivian, which could go public as soon as September and become the biggest EV IPO.
Bitcoin Surges Again
Bitcoin surged, though it was just off 24-hour highs. It currently sits just over $51,000, according to CoinDesk. The price of Bitcoin remains still well short of the record high of $58,332, which it reached Feb. 21.
The Grayscale Bitcoin Trust rose around 6%. It is looking to rally back after ceding around 4% on Tuesday. GBTC stock plunged 23.8% last week, but is still holding above its 10-week moving average.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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