The Dow Jones Industrial Average slipped even as President Joe Biden got set to make a new pledge on Covid-19 vaccines. Warren Buffett stock Coca-Cola (KO) was among the top performing blue chips, and is nearing a buy point. However, Boeing (BA) dipped.
The Nasdaq was continuing to rally, and growth stocks were performing well. A clutch of names passed buy points, including Green Brick Partners (GRBK), Charles River Labs (CRL) and Avantor (AVTR). The former two got some airtime in Tuesday’s IBD Live show.
Biden Vaccine Pledge Due; Optimism Hits High
President Biden is getting set to announce Tuesday that all U.S. adults should be eligible for Covid-19 vaccines by April 19.
This speeds up the timeline he laid out last month, which called for a May 1 deadline. Biden is also expected to say that the U.S. has delivered 150 million shots since he took office.
It comes as enthusiasm over vaccines has boosted optimism over prospects for the American economy.
The IBD/TIPP Economic Optimism Index, an early monthly read on consumer confidence, rose one point to 56.4 in April. This comes after it popped 3.5 points in March. Readings above the neutral 50 level reflect optimism. It was the fourth straight monthly gain and the highest reading since early February 2020.
Government checks of $1,400 per person began arriving shortly after President Biden signed the $1.9-trillion stimulus into law on March 11. The accelerating vaccine rollout also has encouraged numerous states to ease Covid restrictions, fueling last month’s 916,000-job gain.
Nasdaq; S&P 500 Rally
The tech-heavy Nasdaq was the best performing index, though its gain of 0.1% was lean. Peloton Interactive (PTON) was among the top performers, at one point climbing almost 7%. However, the at-home fitness play remains below its 50-day moving average.
U.S. Stock Market Today Overview
Last Update: 1:20 PM ET 4/6/2021
The S&P sectors were mostly positive, with only real estate, technology and financials in the red. Consumer discretionary was leading.
Small caps were up, but were making slim gains. The Russell 2000 rose around 0.2%.
Growth stocks were making better gains however. The Innovator IBD 50 ETF (FFTY) posted a gain of 0.8%.
Warren Buffett Stock Nears Buy As Dow Jones Dips
The Dow Jones Industrial Average slipped lower after hitting a record high Monday. It was down around 0.2%.
Warren Buffett stock Coca-Cola was among the top performing Dow Jones components. It rose around 1.3%. Warren Buffett is a noted admirer of Coca-Cola stock. His firm Berkshire Hathaway (BRKB) holds more than 36 million shares.
Coca-Cola stock has formed a cup with handle, according to MarketSmith analysis. It is closing in on an ideal buy point of 54.04, or a dime above the handle’s highest price. This pattern has formed within a much longer, deeper base.
Coca-Cola peaked near 60 in February last year. Recently, weak stock market performance means KO stock has a weak IBD Composite Rating of 34.
These Stocks Pass Buy Points
Green Brick Partners passed a consolidation pattern with a buy point of 25.15, while its relative strength line spiked to a new high. It is just out of a buy zone.
The homebuilder stock has a top-notch Composite Rating of 87, with its EPS Rating a near-perfect 98. Big money is snapping up the stock, with its Accumulation/Distribution Rating of B+ representing moderate-to-heavy buying among institutions over the past 13 weeks.
Read more about GRBK in this recent IBD 50 Stocks To Watch story.
Cresco Labs stock is also in a buy zone after it passed a flat base entry point of 303.89. The stock has a strong Composite Rating of 91, with earnings particularly strong.
Avantor stock is also in the buy zone after passing a consolidation buy point of 31.15. It has a good, but not ideal, Composite Rating of 86. Both earnings and stock market performance are steady.
Illumina Stock Does Double
Illumina stock was the best performing stock on both the S&P 500 and the Nasdaq, soaring almost 10%. The biotech stock gapped up close to its 50-day moving average.
Late Monday, the San Diego-based outfit said it expected first-quarter revenue to top $1 billion, with $1.4 billion in orders. Management also predicted full-year revenue growth of 25% to 28%, vs. the 17% growth target expected by analysts. Shares ended Monday up 3.8% so far this year.
The stock soared in February after it served up a strong 2021 outlook. But the stock cratered in March after the Federal Trade Commission challenged the company’s $7.1 billion takeover of liquid biopsy company Grail.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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