Dow Jones rises, Nasdaq sold; Logistics stocks show strength amid the economic recovery

The Dow Jones Industrial Average was higher in today’s stock market while the Nasdaq Composite was down and was the only index trading lower. The S&P 500 posted a modest gain on Monday after closing its best month since November on Friday.




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The small cap Russell 2000 was up 0.5% at the close of trading. Meanwhile, the Nasdaq was down 0.5%. The S&P 500 gained 0.3%. The industrials of Dow Jones rose 0.7% and led upwards. Early data showed lower volume on the Nasdaq and NYSE compared to Friday’s close.

The innovator IBD 50 ETF (FFTY) gained 0.6% in growth stocks. The growth index is now back above its 50-day line as it forms a new consolidation with a entry of 50.06. IBD 50 stocks led the way on Monday BioNTech (BNTX) and Green Brick Partner (GRBK) with increases of more than 7% each.

Coronavirus vaccine maker BioNTech continues to expand well after a buy point of 131.10 due to a long consolidation.

Stocks were mixed on Monday as the 10-year Treasury yield fell below 1.61% after production data was released.

US Stock Market Today overview

index symbol price Gain loss % Change
Dow Jones (0DJIA) 34113.89 +239.04 +0.71
S&P 500 (0S & P5) 4192.65 +11.48 +0.27
Nasdaq (0NDQC) 13895.12 -67.56 -0.48
Russell 2000 (Etc.) 226.02 +1.13 +0.50
IBD 50 (FFTY) 46.91 +0.29 +0.62
Last update: 5:06 p.m. ET 03.05.2021

IHS Markit reported its final April manufacturing purchasing managers index at 60.5. This is an advance from March’s 59.1 level, but is only slightly below expectations of 60.6. The ISM Manufacturing Index also fell short of expectations. According to data from Econoday, 60.7 were registered in April while the consensus was 65. However, the March number of 64.7 was the highest index value since 1983 and showed a very strong recovery in manufacturing.

The overall strength in the manufacturing sector drove up almost all shares in the transport logistics industry on Monday. Logistics stocks appear to be a promising way to tackle the recovery as the global economy picks up pace in a post-pandemic world.

Shipping inventories were among the few logistics inventories that grew by more than 1% Expeditors International (EXPD), which was trading above a three-week tight buy point. In the afternoon session, stocks rose nearly 3%.

The stock is expected to post a profit for the first quarter on Tuesday.

Shares over buy points

Several other stocks were also trading for buy points, including CarMax (KMX), Lamar advertisement (LAMR) and AbbVie (ABBV).

CarMax recently formed a flat base with a buy point of 136.64. On Monday, the growth stock was trading above the bottom of the 5% buy zone, which stands at 143.47. CarMax operates 160 used car stores in more than 70 metropolises.

Lamar Advertising’s shares rose from a flat base to a buy point of 100.48. Stocks traded within the 5% buy zone after rising more than 2%. Investors should note that the poster operator reports profits on Tuesday morning before the market opens.

Elsewhere, AbbVie was negotiating from its 113.51 base buy point within the buy zone. Shares rose nearly 3% after reporting better-than-expected results late Friday. The company develops pharmaceutical products for the treatment of immunology, virology, oncology and other diseases.

Dow Jones today

As for the Dow components, chemical companies Dow (DOW), IBM (IBM) and Walgreens (WBA) came out on top with increases of over 2% in each case. Shares of Salesforce.com (CRM), Visa (V) and Intel (INTC) led down.

Apple (AAPL) was also a top gainer, up 0.8%. According to MarketSmith analysis, the stocks are approaching a cup-with-handle buy point of 135.63. The stock’s RS rating of 53, however, is less than ideal for a growth stock breakout. Investors may also want to wait for the stock’s RS line to show more strength.

Elsewhere, Dow Jones financial stocks Goldman Sachs (GS) also rose over 0.5% on Monday. The stocks are approaching a new cup-based buy point of 356.95 and staying 1% off entry. The stock retains a strong 85 RS rating and an almost perfect 98 composite rating.

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