Stocks reversed lower midday Tuesday with the Dow Jones Industrial Average erasing a 117-point gain, as consumer confidence fell more than expected. But indexes bounced to post modest gains.
The Nasdaq and S&P 500 were slightly higher and the Dow Jones industrials edged up 0.1% in the stock market today. Small caps tracked by the Russell 2000 dipped 0.1%. Volume was higher on both major exchanges vs. the same time Monday.
Early Tuesday, the Conference Board’s consumer confidence index dipped to 117.2 in May from 117.5 in April. But April’s reading was the highest since February 2020, before the start of Covid-19 lockdowns.
Tech stocks rose early before paring gains. Monday’s tech rally helped the Nasdaq regain its 50-day moving average. On May 10, the Nasdaq tumbled 2.6% to close below the line for the first time since March.
Last year, tech stocks boosted the Nasdaq to a 43.6% gain — its fifth-best year ever. The S&P 500 rose 16.3% in 2020 and the Dow added 7.2%. Read The Big Picture for more detailed daily market analysis.
U.S. Stock Market Today Overview
Last Update: 12:02 PM ET 5/25/2021
The U.S. economy is recovering from the Covid-19 pandemic, which triggered nationwide lockdowns over a year ago. But many states are relaxing restrictions, and cases are plateauing or declining in some states as vaccinations continue to roll out.
Cumulative Covid-19 cases worldwide have topped 168 million, with nearly 3.5 million deaths, according to Worldometer. In the U.S., cases are approaching 34 million with more than 604,000 deaths, although the number of new cases and deaths in the U.S. has slowed dramatically in many states.
As countries rush to vaccinate their populace, Moderna (MRNA) popped 4% in heavy trade as works on a cup-with-handle base with a 189.10 buy point, according to MarketSmith.com. Moderna stock is about 10% away from the entry.
The biotech said it would soon ask global regulators to authorize its Covid vaccine for teens following a successful Phase 3 study. Using the Centers for Disease Control and Prevention’s definition, Moderna’s vaccine was 93% effective in 12-17 year olds who received both doses.
Dow Jones Winners And Losers
Boeing (BA) and Disney (DIS) were the only two blue chips up more than 1%. Boeing lifted 1.7% in fast turnover as the stock tries to retake its 50-day moving average. It’s on track for a fourth straight advance. Boeing stock is shaping a new consolidation with a 278.67 buy point.
Disney stock, up 1%, is also looking to extend its win streak to four days. Last month, the media and theme parks giant reported a 32% gain in fiscal Q2 profit. That halted a nine-quarter string of declines.
Microsoft (MSFT) climbed 0.4%. It remains in buy range from a 246.23 buy point of a flat base, which it regained on Monday. The buy range tops out at 258.54. Microsoft is an IBD Leaderboard and IBD Long-Term Leader stock.
Outside The Dow
Homebuilders, airlines, software and chip stocks led the upside among IBD’s 197 industry groups. Oil and gas, steel and automaker stocks lagged.
Chip-gear maker Applied Materials (AMAT) rose 2% in heavy trade to move further above its 50-day line. The stock is building a consolidation with a 146.10 buy point. Meanwhile, an early entry at 138.77 is also in play. Applied Materials is an IBD SwingTrader stock and was Monday’s IBD Stock Of The Day.
Also in the chip gear group, ASML (ASML) gained nearly 2% as it rebounds off the 10-week line. That set up a chance to buy or add shares. ASML stock, featured in Monday’s IBD 50 Stocks To Watch, is an IBD Leaderboard and IBD 50 stock.
The iShares PHLX Semiconductor ETF (SOXX) advanced nearly 1% earlier but was flat midday as the stock market cooled off.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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