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Nasdaq Pares Gains As Stock Advance Slows; This IBD 50 Stock Tops Buy Point

The stock market rose modestly Wednesday morning as the Nasdaq composite slowed following three days of solid gains. An IBD 50 stock broke out, nonetheless.




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The major indexes Wednesday traded in narrow price ranges, all 0.1% higher around 10:15 am ET. Volume was lower compared with the same time on Tuesday.

In the Dow Jones Industrial Average, Salesforce.com (CRM) will announce earnings after today’s close. The stock is nearing its November highs.

Johnson & Johnson (JNJ) said a second dose of its Covid-19 vaccine showed in studies to be an effective booster against the virus. The stock, though eased 0.5% and is back near the 173.75 buy point.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 35382.03 +15.77 +0.04
S&P 500 (0S&P5) 4491.01 +4.78 +0.11
Nasdaq (0NDQC ) 15032.87 +13.07 +0.09
Russell 2000 (IWM) 222.29 +0.51 +0.23
IBD 50 (FFTY) 47.11 +0.36 +0.77
Last Update: 10:14 AM ET 8/25/2021

The S&P 500 was flat as weakness in energy, materials and utilities weighed on the index. The Nasdaq composite pared gains. Software and semiconductors made gains in the first hour of trading. VanEck Vectors Semiconductor (SMH) rose 1.5%.

The Nasdaq found support at its 50-day moving average on Thursday and rose 1.2%, 1.5% and 0.5% the next three days. That rally now appears to be cooling off.

On Tuesday, the Nasdaq topped the 15,000 level for the first time. It took 136 trading days for the composite to rise from 14,000, according to Dow Jones Market Data. It was the longest period between 1,000-point milestones since the 335 trading days the Nasdaq went from 8,000 to 9,000. That was from August 2018 to December 2019.

The few largest stocks shouldered the Nasdaq’s latest 1,000-point move to 15,000. But they weren’t the largest gainers in that time. Small caps, some that trade at low share prices, made most of the largest gains, Dow Jones Market Data found.

The one big cap among the winners is BioNTech (BNTX), the Covid vaccine maker. It more than tripled. The stock, which was in IBD Leaderboard for part of that run, is extended from a breakout in July.

The small-cap Russell 2000 climbed 0.2%. Finance Select Sector SPDR (XLF) rose 1% to lead the S&P sector ETFs.

Innovator IBD 50 ETF (FFTY) rose 0.6%. Technology stocks gave the index much of its outperformance, while some consumer, health care and financials lagged.

Rent-A-Center (RCII) broke out of a cup-with-handle base. The stock pared gains and remains in buy range from the 65.10 buy point. Bank of America initiated coverage of the lease-to-own company with a buy rating and an 85 price target.

Dynavax Technologies (DVAX) led the IBD 50 with gain of more than 2%, hitting a new high. Shares are well extended from a cup base that broke out this month, according to MarketSmith pattern recognition. Dynavax developed a Covid vaccine with a Taiwanese company that has been approved for use in that country.

Juan Carlos Arancibia is the Markets Editor of IBD and oversees our market coverage. Follow him at @IBD_jarancibia

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