The Dow Jones Industrial Average rallied, even as other indexes fell, after President Joe Biden promised the U.S. will have enough Covid-19 vaccines for all Americans ahead of schedule. However weak jobs data and a rise in the 10-year Treasury yield weighed on indexes.
Boeing (BA) took flight, while Walt Disney (DIS) was among the other 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.
Meanwhile crafts retailing giant Michaels (MIK) rocketed higher after it emerged it has agreed to a deal to be taken private. Finally, Avient (AVNT) managed to pass a buy point.
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 is 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.”
Yields Rise Again As Job Data Falls Short
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 1.48%. Stocks slipped after the yield surged to a high of 1.6% last week.
Yields fall when bond prices rise. This is a key gauge, as the 10-year serves as the benchmark borrowing cost in global debt markets.
Nasdaq, S&P 500 Fall
The Nasdaq rallied from session lows, but was still the worst performing major index. It fell around 0.8%. Media stock Fox (FOX) was the top Nasdaq performer, rising around 6%.
U.S. Stock Market Today Overview
Last Update: 11:56 AM ET 3/3/2021
The S&P 500 was faring better, but still fell around 0.1%. Diamondback Energy (FANG) was the top component, rising almost 8%.
Volume was higher compared to the same time Tuesday. It rose around 11% on the Nasdaq and by around 1% on the NYSE.
The S&P sectors were coming under pressure, with more losers than winners. Energy and financials were leading.
Small caps managed to rally back out of the red as the bulls battled the bears. The Russell 2000 rose almost 1%.
Growth stocks were struggling however. The Innovator IBD 50 ETF slipped around 1.6%. Charles Schwab (SCHW) was the leading IBD 50 stock gaining almost 3%.
Boeing, Disney Stock Help Dow Jones
The Dow Jones Industrial Average was the best performing major index. It rallied out of the red and was up around 0.4%
Boeing was the top component, vaulting almost 5%. 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, though it ceded some gains. It was up almost 1%. 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 Whipsaw
IBD Leaderboard stock Tesla was rallying in a whipsaw session. It was in the red, but almost flat. 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 also surrendered gains as it fell around 0.2%. It is trying 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, but it’s trying to rally back. It is down around 0.5%. 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 around 1.5%. It has now slipped below 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.
Michael’s Stock Soars
Michaels stock rocketed higher on the news it is to be bought by private equity firm Apollo Global Management for $3.3 billion.
MIK stock was up almost 23%. It gapped up out of a consolidation pattern buy zone and straight into a profit-taking zone.
The ideal entry point 18 exactly. Michaels stock has a strong Composite Rating of 81.
Apollo will buy all outstanding shares of the arts and crafts retailer for 22 per share. This is a 47% premium to Friday’s closing stock price, the last trading day prior to press speculation about a possible deal.
The terms of the deal were approved unanimously by the Michaels board.
There will be a 25-day go-shop period, during which the Michaels can terminate the deal if it receives a superior offer.
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 almost 7%. 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.
AVNT Stock Hits Buy Zone
Plastics stock Avient (AVNT) is in buy zone after breaking out of a consolidation pattern.
The ideal buy point is 46,48, MarketSmith analysis shows.
The stock is trading above its 50-day line, while its RS line has just hit a new high. These are both bullish indicators.
AVNT stock has a top notch Composite Rating of 96. Earnings are lagging, but its RS Rating is a solid 81. Big money has also been buying the stock of late.
Avient serves a variety of industries, including appliances, consumer goods, healthcare, packaging, and textiles
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
YOU MIGHT ALSO LIKE:
These Are The Best Robinhood Stocks To Buy Or Watch Now
Who Joins Crocs, PayPal, InMode Among Breakout Growth Stocks?
Get Full Access To IBD Stock Lists And Ratings
What’s New In IBD Leaderboard? Check Out Top Growth Stocks Here
These Are The 5 Best Stocks To Buy And Watch Now