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Dow Jones Closes Near Session High Despite J&J News; Bitcoin Soars

Key market indexes closed near session highs Tuesday, as the S&P 500 hit a new high and the Dow Jones Industrial Average erased most of a 200-point loss.




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The Nasdaq rallied more than 1%, the S&P 500 climbed 0.3% and the Dow Jones industrials edged 0.2% lower in the stock market today. Small caps tracked by the Russell 2000 also gave up 0.2%. Early data showed higher volume on both major exchanges vs. Monday.

The Labor Department’s Consumer Price Index inflation gauge jumped 0.6% in March, picking up the pace after a 0.4% increase for February. That was just above the 0.5% rise targeted by economists.

Tech stocks boosted the Nasdaq composite to a 43.6% gain in 2020 for its fifth best year ever. The S&P 500 rose 16.3% and the Dow added 7.2% last year. After a strong start this year, the market is rebounding from a short correction. Read The Big Picture for detailed daily market analysis.

Covid-19 Update

The Covid-19 pandemic has roiled the U.S. economy, as nationwide lockdowns pass the one-year mark. But many states are relaxing restrictions, and while cases are starting to plateau in some states, there are signs of hope as vaccinations roll out.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 33679.44 -65.96 -0.20
S&P 500 (0S&P5) 4141.66 +13.67 +0.33
Nasdaq (0NDQC ) 13996.10 +146.10 +1.05
Russell 2000 (IWM) 221.14 -0.58 -0.26
IBD 50 (FFTY) 45.75 +0.17 +0.37
Last Update: 4:14 PM ET 4/13/2021

Cumulative Covid-19 cases worldwide are approaching 138 million, with nearly 3 million deaths, according to Worldometer. In the U.S., cases have topped 32 million with more than 576,000 deaths, although the number of new cases in the U.S. has slowed dramatically.

As vaccinations continue to roll out, Johnson & Johnson (JNJ) gapped down and at one point fell more than 3.1% in heavy trade to give up support at its 10-week moving average. J&J stock is still working on a flat base with a 173.75 buy point, according to MarketSmith chart analysis. It trimmed losses to 1.3% by the close.

Early Tuesday, the Food and Drug Administration and the Centers for Disease Control recommended a pause in the use of J&J’s single-dose vaccine “out of an abundance of caution.” Six women ages 18-48 who received the vaccine in the U.S. developed a rare disorder involving blood clots within about two weeks.

Competing Covid vaccine stocks were mostly higher.

Moderna (MRNA) gapped up and soared 7% in fast trade to retake its 50-day line. Germany’s BioNTech (BNTX), up nearly 7% in heavy volume, is close to a 131.10 buy point of an 18-week consolidation. BioNTech partner Pfizer (PFE) climbed 0.5%.

Dow Jones Winners And Losers

Aside from J&J, other big blue chip losers included IBM (IBM) and Nike (NKE), down more than 2% each. Nike stock is building a shallow base with a 148.05 buy point. It’s about 9% away from the entry.

Apple (AAPL), up 2.4%, was the Dow’s biggest winner. Shares regained their 50-day line last week and are about 8% away from a 145.19 ideal buy point of a new base. Apple reportedly has a product launch event scheduled for April 20.

Outside The Dow

Software, automaker and gold miner stocks led the upside among IBD’s 197 industry groups. But retail, transport and steel stocks lagged.

In the automaker group, Tesla (TSLA) surged nearly 9% to reclaim its  50-day line for the first time in nearly two months. Shares added to Monday’s 4% gain. Canaccord Genuity on Monday upgraded its rating on the electric-vehicle maker to buy from hold. Tesla stock may be starting the right side of a new base. It’s still well extended from a 466 buy point of a cup with handle.

Bitcoin jumped more than 5% Tuesday to top the $63,000 level and mark a record high. It was near $63,219 in afternoon trade, according to Coindesk. Grayscale Bitcoin Trust (GBTC), which tracks the price of the cryptocurrency, leapt more than 5% to clear an early entry of 54.10.

Coinbase, a cryptocurrency exchange, will debut Wednesday on the Nasdaq Global Select Market under the ticker symbol COIN.

IBD 50 ETF Advances

The Innovator IBD 50 ETF (FFTY), which tracks the performance of top-rated growth stocks in the IBD 50, reversed to a 0.4% gain. The exchange traded fund, up 18.2% in 2020, extended its win streak to four sessions. BioNTech was one of the IBD 50 winners, while Plby Group (PLBY), Square (SQ), PayPal (PYPL) and Dynatrace (DT) also scored solid gains.

UFP Industries (UFPI), Floor & Decor (FND) and Century Communities (CCS) each gave up 2% or more.

In the MarketSmith Growth 250, Roblox (RBLX) surged 9% to a new high. The stock, which came public March 10, broke out past a 79.20 buy point of an IPO base. Roblox joined Leaderboard on Friday; the position was increased today and gained even more attention on the IBD Live show Tuesday.

Follow Nancy Gondo on Twitter at @IBD_NGondo

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