Dow Hits To Record High On Positive Vaccine Data – Investor's Business Daily

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The Dow Jones Industrial Average rose 330 points in today’s market after climbing over 1,500 points last week, but gains were fading. News of positive coronavirus vaccine trial results from Moderna (MRNA) boosted the market. The company’s coronavirus vaccine proved 94.5% effective at an interim analysis of its final-phase test.

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Shares of Moderna rallied over 8% to a new high of 100.50 while breaking out past a 95.31 cup-based buy point. The stock is currently in buy range, which tops out at 100.08.

Meanwhile, the Nasdaq composite lagged the major indexes on Monday. But tech giants like Apple (AAPL) and Nvidia (NVDA) traded higher 1.2% and 1.3%, respectively.

Stock Market Today

While most of IBD’s 197 industry groups rose on Monday, alcoholic beverage makers, software companies and gold miners were among the worst performers, but with mild declines. Meanwhile, retail, airline and oil and gas stocks led the market on the upside.

At around 1:35p.m. ET on Monday, the Dow was up 1.1%. The S&P 500 traded 0.7% higher, while the Nasdaq gained 0.3%. All three were giving back earlier gains. The Russell 2000 small-cap index traded 1.9% higher, leading the market. Volume was stronger on both the Nasdaq and the NYSE vs. the same time on Friday, according to early data.

The recent stock market rally has led the market to new highs as the tech-heavy Nasdaq is up 31.8% for the year. The S&P 500 is up 11% year to date while the Dow held a 3.3% gain through Friday’s close.

The Innovator IBD 50 ETF (FFTY) traded 0.8% higher. Shares of the growth-focused ETF are now trading back above the 50-day line. Top gainers among IBD 50 stocks Monday included Taiwan Semiconductor (TSM) and Teradyne (TER), which climbed 8.8% and 3.7%, respectively.

Dow Jones Today

As for the Dow Jones, stocks leading the index higher included Boeing (BA), Chevron (CVX) and Walgreens (WBA). Boeing led with a gain of over 7% while Chevron held a gain of about 5.1%.

Elsewhere, home-improvement retailer Home Depot (HD) gained 3% in early afternoon trading. The Dow giant is nearing a 293.05 flat base entry, according to MarketSmith chart analysis. The stock is fighting to regain its 50-day line.

Both Home Depot and Dow component Walmart (WMT) are set to report earnings Tuesday before the market opens.

Home Depot is expected to report a 20% EPS increase year-over-year while sales rise 16%, according to IBD data. Meanwhile, analysts expect Walmart to report a 2% increase in earnings on a sales gain of 3%, year over year.

Shares of Walmart broke out into the 5% buy zone from a 151.43 buy point in a flat base. The consumer staples company maintains a 78 RS Rating and an 84 Composite.

Breakout Stocks To Watch: Pacira BioSciences

Biotech firm Pacira BioSciences (PCRX) broke out of a lopsided base with a 64.54 buy point on Monday. The stock was featured in the IBD 50 Stocks To Watch column last week.

Shares rose over 26% last week and regained the 50-day moving average. The stock’s RS line rose sharply higher over the past week alongside the stock’s price. Pacira also maintains a decent 84 RS Rating with a strong 96 Composite.

Additionally, the stock has already gained over 135% since hitting a low of 27.46 amid the coronavirus crash.

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

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