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Dow Jones Leads Upside, Nasdaq Reverses Higher; These Covid Vaccine Makers Plunge

The Dow Jones Industrial Average rallied more than 390 points in today’s stock market and traded near its highs of the day. The Nasdaq composite traded higher as well after paring an earlier loss. Stocks were up across the board as investors responded to positive debt ceiling news.




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Dow Jones In The Stock Market Today

At around 1:30 pm ET, the Nasdaq composite gained 0.4%. The Dow Jones traded up around 1.2%, leading the upside. The S&P 500 rose 0.9%, while the Russell 2000 climbed 1.7%. Early data showed higher volume on the NYSE and lower volume on the Nasdaq vs. the same time on Thursday.

President Biden signed a bill late Thursday to extend government funding through Dec. 3, averting a government shutdown. In economic news, personal spending climbed 0.8% in August and incomes also rose 0.2% from July. The spending figure was slightly above the Econoday consensus estimate, while personal income came in slightly below projections.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 34247.09 +403.17 +1.19
S&P 500 (0S&P5) 4344.84 +37.30 +0.87
Nasdaq (0NDQC ) 14512.50 +63.92 +0.44
Russell 2000 (IWM) 222.55 +3.80 +1.74
IBD 50 (FFTY) 46.90 -0.47 -0.99
Last Update: 1:42 PM ET 10/1/2021

Despite Friday’s positive trading, the market remains dented from this week’s heavy sell-off. IBD’s current outlook has downgraded to “market in correction” status. Therefore, it’s not an ideal time to be initiating new positions or acting bullish.

As Thursday’s The Big Picture column noted, the sell-off could be attributed to a number of factors, from spiking oil prices to fears over slowing economic growth. One thing was clear: Thursday’s trading marked a fourth straight session of institutional distribution. This caused a downgrade in the market outlook.

During a market correction, the best thing investors can do is generate a top notch watchlist and monitor the market closely for the next follow-through day. This key signal confirms that a new uptrend is underway. Also, clean up your current positions by taking profits on your biggest gainers, especially if they’re failing to hold support at their 10-week or 40-week lines.

Growth Stocks To Watch

The Innovator IBD 50 ETF (FFTY) lost 1% amid a tough market for growth stocks. Shares of the growth-focused ETF extended weekly losses and fell further below a recent failed buy point. The ETF also lost support at its 10-week line. Now, shares are scrambling to hold support at the 40-week line after losing over 9% for the week.

Stocks underperforming in the IBD 50 included Dynavax (DVAX), UpStart (UPST) and Shockwave Medical (SWAV). Shockwave fell below support at its 10-week line, while UpStart is testing for support at its 21-day exponential line.

Meanwhile, Dynavax slipped below its 21-day exponential line as shares plunged 14% in heavy volume. It’s still holding above its 50-day line. The stock was among a few Covid-19 vaccine developers trading lower on Friday.

Moderna (MRNA) gapped down and lost 11%, falling below the bottom of a consolidation. Pfizer (PFE) slipped 2%, while its vaccine partner BioNTech (BNTX) shed 8% after paring an earlier double-digit loss. Johnson & Johnson (JNJ) fell 1% while Novavax (NVAX) led the downside, sinking more than 16%. Shares are below the 200-day line for the first time in four months. Maravai LifeSciences (MRVI) declined 11%.

The vaccine maker meltdown was caused by positive news from Merck (MRK), which rose 8%, fueling the Dow’s market lead. Shares gapped up past a 79.33 buy point of a six-week flat base in strong volume. The drugmaker said a late-stage study of an oral Covid-19 drug developed with Ridgeback Biotherapeutics reduced the risk of hospitalization or death in high-risk patients. Merck and Ridgeback plan to apply with the Food and Drug Administration for emergency use authorization.

Follow Rachel Fox on Twitter at @foxonstocks for more Dow Jones and market commentary.

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