The Dow Jones Industrial Average inched higher as the Nasdaq and small caps excelled. Tesla (TSLA) fought back despite a product recall. Virgin Galactic (SPCE) blasted higher even as spinoff Virgin Orbit (VORB) struggled on its Nasdaq debut. Walt Disney (DIS) was one of the day’s top blue chips.
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A few stocks were managing to test buy points amid the mildly positive action. Eastman Chemical (EMN) and Fidelity National Financial (FNF) both flirted with entries.
Nasdaq Gains As Small Caps Excel
The Nasdaq was the leading major index, thanks to a gain of 0.5%. Pinduoduo (PDD) was the top gainer in a strong day for beaten-down China stocks. It rose nearly 12%.
The S&P 500 also rose, though its gain of 0.1% was slender indeed. Twitter (TWTR) was the biggest winner here, rising just over 5%.
The S&P 500 sectors were mostly making up ground. Communication services and real estate were faring best. Consumer staples and energy were the worst laggards.
U.S. Stock Market Today Overview |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 36520.68 | +32.05 | +0.09 |
| S&P 500 | (0S&P5) | 4799.18 | +6.12 | +0.13 |
| Nasdaq | (0NDQC ) | 15840.73 | +74.51 | +0.47 |
| Russell 2000 | (IWM) | 224.94 | +1.95 | +0.87 |
| IBD 50 | (FFTY) | 46.08 | +0.04 | +0.09 |
| Last Update: 2:58 PM ET 12/30/2021 | ||||
Small caps were outperforming the major indexes, with the Russell 2000 rising 0.9%.
Growth stocks were also making mild progress. The Innovator IBD 50 ETF (FFTY), a bellwether for growth stocks, rose 0.1%.
Dow Jones Today: Disney Stock Shines
The Dow Jones Industrial Average also managed to inch higher, gaining about 0.1%.
Disney stock was among the best performers on the Dow Jones today. It rose just over 1% and popped above its 10-week moving average.
If it can hold above this key technical benchmark it will be an encouraging sign after recent poor performance.
Salesforce.com (CRM) was also enjoying a solid session, its gain of around 1% putting it just behind Walt Disney.
Procter & Gamble (PG) was the worst laggard, giving up about 1%.
Tesla Stock Rallies Despite Recall
Tesla flexed its muscles by fighting back despite recall news. It rallied out of the red into positive territory before surrendering and registering a marginal loss.
Tesla stock is trying to move above its 50-day moving average.
TSLA stock dipped early after the company said it was recalling a large number of Model 3 and Model S cars. This was due to the fact that opening and closing the trunk can cause the rearview camera to malfunction.
A potential catalyst is just around the corner. Q4 delivery data will be out soon, most likely on Monday.
The EV leader is still well clear of a cup-with-handle entry of 764.55 and a 900.50 buy point. It is also working on a new double-bottom base. The potential entry point here is 1,202.95.
Tesla is a member of the prestigious IBD Leaderboard list of leading growth stocks.
Virgin Galactic Stock Blasts Off As Virgin Orbit Struggles
Virgin Galactic stock was managing to blast higher even as its spinoff Virgin Orbit had a tough Nasdaq debut.
SPCE stock was up around 8%, with volume mildly higher than average.
Despite its bullish gain for the day, SPCE stock has been struggling mightily for months. It is now marooned below its 200-day and 50-day lines.
In addition, Virgin Galactic stock now sits almost 80% off its all-time of 62.80, which it reached in February. SPCE stock traded as high as 57.51 on June 28.
SPCE rallied despite the fact spinoff Virgin Orbit was having a disappointing debut, falling nearly 3%. It was down as much as 8% earlier in the session.
VORB stock went public via a merger with a special purpose acquisition company.
It went public following an announcement by Virgin Group, which was founded by Sir Richard Branson, that it would sink as much as $100 million into Orbit.
It made the move after the company raised under 50% of its target of nearly $500 million.
Virgin Orbit told the Financial Times its listing had been adversely affected by market conditions. “We’re fighting against some pretty big headwinds at the end of the year,” it said in a statement.
These Stocks Test Buy Points
Eastman Chemical is sitting just below its buy zone after earlier clearing a saucer-with-handle entry of 121.30, MarketSmith analysis shows.
The relative strength line is beginning to gain traction but remains off highs for the year. The stock spiked higher in heavy volume earlier this month.
Eastman Chemical offers a solid blend of earnings and market performance. Institutional investors have also been piling into the stock of late.
Fidelity National Financial is also just below its buy zone after it came within a hair of passing a 53.03 buy point.
It is trying to clear a flat base. This is a first-stage pattern, which is a good sign. IBD research has found early-stage patterns have a better chance of providing rich gains.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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The post Dow Jones Gains As Nasdaq Leads; Tesla Stock Fights Back After Recall; Virgin Galactic Blasts Off appeared first on Investor’s Business Daily.
