The Dow Jones Industrial Average moved higher but it was growth stocks that surged most. Tesla (TSLA) rocketed higher after CEO Elon Musk spoke out. Moderna (MRNA) took a dive as Pfizer (PFE) saw its Covid treatment pill clear a key hurdle. Caterpillar (CAT) and Boeing (BA) were the top blue chips.
Nasdaq Up, Growth Stocks Shine Brightest
The Nasdaq was the leading major index, rising about 0.8%. Paychex (PAYX) was one of the top performers here, rising about 5%.
The S&P 500 slipped just a hair behind the Nasdaq after holding an early lead. It was up 0.7%. Royal Caribbean (RCL) stood out here, rising 4%.
U.S. Stock Market Today Overview
Last Update: 3:00 PM ET 12/22/2021
The S&P 500 sectors were all making up ground. Consumer discretionary and health were faring best while utilities and industrials made the smallest gains.
Small caps continued to make up ground, with the Russell 2000 rising 0.6%.
But it was growth stocks that were making the strongest gains. The Innovator IBD 50 ETF (FFTY), a bellwether for growth stocks, popped 1.2%.
Dow Jones Today: CAT Stock Up On This, Boeing Stock Climbs
The Dow Jones Industrial Average participated in the wider bullish action, The blue chip index was up almost 200 points as it rose 0.6%.
Caterpillar was the biggest gainer, rising 1.5%. It is now close to moving back above the key 50-day moving average.
CAT stock was boosted after Bernstein upgraded it to an outperform rating.
Boeing stock was moving well for the second day in a row. The aerospace giant rose more than 1%. It surged Tuesday after it received an order for 19 new 767 freighters from UPS (UPS). Boeing was also this week named a top stock pick for 2022 by RBC.
The stock remains mired under its 50-day and 200-day lines, but has flown above its short-term moving averages.
Elon Musk Says This, Tesla Stock Charges
Tesla stock rocketed higher after the firm’s CEO Elon Musk said he is done with selling shares for now.
“I sold enough stock to get to around 10% plus the option exercise stuff and I tried to be extremely literal here,” he told the Babylon Bee.
The eccentric executive added some context Wednesday via Twitter But “This assumes completion of the 10b sale,” he said.
Tesla filings show Musk has been exercising stock options that expire next year under a Rule 10b5-1 trading plan. He has been selling Tesla securities to help pay for taxes.
Musk sold a further 583,611 shares on Tuesday. This means he has now sold 13.5 million shares in total.
Tesla stock is now close to its 50-day moving average. It fell below this key benchmark last week.
Shares traded as high as 1,243.49 on Nov. 4, but TSLA stock is now nearly 20% off its 52-week high.
The EV leader is still well clear of a cup with handle entry of 764.55, It is also working on a new base however it will take more time develop before new entry point emerges.
Moderna Stock Dives As Pfizer Covid Pill Is Cleared
Moderna stock was struggling badly Wednesday, falling nearly 7%. Fellow Covid vaccine play BioNTech (BNTX) tumbled over 5%.
Both stocks are trading below the key 50-day moving average.
They were tumbling after the Food and Drug Administration granted emergency authorization to Pfizer’s Covid treatment pill. It The medication could be available to patients as early as this weekend.
The drug is recommended for people at a high risk of developing severe Covid-19. It will be available to patients aged 12 or older.
Pfizer stock was up around 1%. The drug giant is already in a partnership with BioNTech to offer a Covid vaccine. In addition, a new study out of Scotland found the risk of hospitalization with Covid-19 was two-thirds lower with omicron than with delta.
The study looked at the health records of 5.4 million people in Scotland. Experts said that the fact omicron is more contagious means that more people could still end up hospitalized in total.
These Stocks Pass Buy Points
Clinical research stock Icon is sitting in a buy zone after clearing a handle entry of 290.01. The move was made in above average volume, an encouraging sign.
The relative strength line is also beginning to spike. A clutch of major funds hold Icon stock, including the MFS Growth A Fund (MFEGX).
Nutrien is also actionable after it moved above a flat-base buy point of 73.60. The fertilizer play was smelling of roses Wednesday amid strength in agricultural chemical firms.
Its new base sits on top of a longer consolidation.
Both Nutrien and Icon have been added to the prestigious IBD Leaderboard list of leading growth stocks.
American Homes 4 Rent is sitting just below a consolidation pattern with an entry of 42.71 after earlier rising above. The REIT boasts a strong mix of market and earnings performance.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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