Stock Market News for Mar 16, 2021
Benchmarks closed modestly higher on Monday as investors continued to show optimism about economic recovery. Traders also kept eye on Fed’s two-day meeting and economic data scheduled for release this week.
The Dow Jones Industrial Average (DJI) rose 174.82 points, or 0.5%, to close at 32,953.46 and the S&P 500 rose 25.60 points, or 0.7%, to close at 3,968.94. The Nasdaq Composite Index closed at 13,459.71, adding 139.84 points, or 1.1%. The fear-gauge CBOE Volatility Index (VIX) decreased 3.2%, to close at 20.03. Advancing issues outnumbered declining ones for 1.78-to-1 ratio on the NYSE and a 1.35-to-1 ratio on the Nasdaq favored advancers.
How Did the Benchmarks Perform?
The Dow hit its seventh consecutive record close on Monday and this is the blue-chip index’s longest such run since December 2017, as per Dow Jones Market Data. While the S&P 500 hit a fresh all-time high and continued its fifth straight day of gains. Of the 11 major sectors of the broader index, nine closed in the green, with utilities, real estate, consumer discretionary and technology sectors closing at least 1% higher for the day.
McDonald's Corporation MCD, Walgreens Boots Alliance, Inc. WBA and NIKE, Inc. NKE emerged as the Dow’s biggest winners climbing at least 3.2% on Monday. Nike holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Tech stocks made a comeback on Monday and helped the Nasdaq add 1.1% for the session. Among its highest gainers were, NXP Semiconductors N.V. NXPI that closed nearly 9% higher, followed by at least 4% rise in shares of DocuSign, Inc. DOCU, Broadcom Inc. AVGO, Align Technology, Inc. ALGN.
Overall, the S&P 500 posted 90 new 52-week highs and no new lows, while the Nasdaq Composite recorded 281 new highs and 15 new lows.
Investors Eye on Fed’s Policy Briefing
Monday stocks made modest gains as investors remained optimistic about the economy’s recovery and eagerly awaited the Federal Reserve’s scheduled policy briefing on Mar 17. Investors expect the US central bank’s Federal Open Market Committee to forecast the economy’s growth in 2021 in its two-day gathering and also keep a dovish stance for the unpredictable future.
Benchmarks have recorded solid gains last week after President Joe Biden signed a $1.9 trillion COVID-19 relief package into law and investors deflected from sixth straight week rise in Treasury yields. Additionally, expectations of a broader economic reopening have made cyclical stocks more attractive in the past week.
Travel stocks, especially air travel has jumped over the weekend. Rollout of COVID-19 vaccines has helped Americans to go on vacations. Shares of United Airlines Holdings, Inc. UAL and American Airlines Group Inc. AAL closed 8.3% and 7.7% higher, respectively after the Transportation Security Administration reported that it has screened more than 1.34 million people on Sunday. The figure is 86,000 more than that of a year ago, after WHO declared COVID-19 a pandemic.
Stocks that Made Headline
United Airlines (UAL) Up on Expectations of Positive Cash Flow
United Airlines Holdings has witnessed an improvement in passenger demand and bookings in recent weeks, owing to which it expects core cash flow to be positive in March. Following this bullish update, shares of the company touched a 52-week high of $61.69 on Mar 15, before retracing a bit to close the session at $60.94, up 8.3%. (Read More)
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McDonalds Corporation (MCD) : Free Stock Analysis Report
United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
Align Technology, Inc. (ALGN) : Free Stock Analysis Report
NXP Semiconductors N.V. (NXPI) : Free Stock Analysis Report
Broadcom Inc. (AVGO) : Free Stock Analysis Report
Walgreens Boots Alliance, Inc. (WBA) : Free Stock Analysis Report
DocuSign Inc. (DOCU) : Free Stock Analysis Report
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