The Dow Jones Industrial Average hit fresh highs after the House passed President Joe Biden’s $1.9 trillion stimulus plan, and as inflation fears ease.
The Dow Jones industrials rallied 1.7%, the S&P 500 rose 1% and the Nasdaq added 0.5% in the stock market today. Small caps tracked by the Russell 2000 outperformed, up 1.9%. Volume was higher on both major exchanges vs. the same time Tuesday.
Consumer prices rose 0.4% in February in line with consensus estimates, signaling minor inflation. Excluding food and energy, prices rose 0.1% vs. the 0.2% consensus.
The 10-year Treasury yield fell to 1.516% from around 1.54% earlier Wednesday, after the 10-year Treasury auction.
The House voted along party lines to pass the Senate’s version of Biden’s $1.9 trillion stimulus bill, which the Senate passed on Saturday. Now that the House has approved the bill, it goes to President Biden, who said he will sign it on Friday.
“This legislation is about giving the backbone of this nation — the essential workers, the working people who built this country, the people who keep this country going — a fighting chance,” Biden said in a statement after the vote.
U.S. Stock Market Today Overview
Last Update: 2:54 PM ET 3/10/2021
Tech stocks boosted the Nasdaq to a 43.6% gain in 2020 for its fifth best year ever. The S&P 500 rose 16.3% and the Dow added 7.2% last year. After a strong start this year, the market is now in a correction but is rebounding. Read The Big Picture for detailed daily market analysis.
The Covid-19 pandemic continues to roil the U.S. economy, as nationwide lockdowns approach the one-year mark. But many states are relaxing restrictions, and there are signs of hope as vaccinations roll out and cases start to plateau in some states.
Cumulative Covid-19 cases worldwide have topped 118 million with more than 2.6 million deaths, according to Worldometer. In the U.S., cases surpassed 29.8 million with nearly 541,000 deaths, although the number of new cases in the U.S. has slowed dramatically in recent weeks.
Dow Winners — And A Loser
Boeing (BA) soared nearly 7% in fast turnover and is now extended from a 229.71 buy point of a cup with handle, according to a MarketSmith weekly chart. On a daily chart, Boeing stock just broke out past a 244.18 buy point of a cup base. The 5% buy range goes up to 256.39.
On Tuesday, Boeing shares rose nearly 3% as the jet maker landed more orders than cancellations in February. It secured 82 new orders and recorded 51 cancellations for the month.
The biggest decliner in afternoon trade was Apple (AAPL), down 0.3%. On Tuesday, the iPhone maker’s shares rallied 4.1%. Apple stock has been stuck under its 10-week moving average for nearly four weeks. On Feb. 18, it triggered the 7%-8% loss-cutting sell rule when it fell more than 7% below a 138.89 buy point of a cup with handle.
Outside The Dow
Consumer electronics retailers, drugstores and gaming stocks led the upside among IBD’s 197 industry groups. But airlines, chips and solar stocks lagged.
DraftKings (DKNG) soared 13% in heavy trade, after the company held a virtual investor conference on Tuesday. The online sports betting app increased its long-term adjusted EBITDA target more than 40% to $1.7 billion from $1.2 billion predicted a year ago.
Bitcoin rallied nearly 5% Wednesday, topping $56,000. The price of Bitcoin traded around $56,736 in afternoon action, according to CoinDesk. Prices hit an all-time high on Feb. 21, topping out at $58,332.
The Grayscale Bitcoin Trust (GBTC) looked to extend a win streak to three sessions Wednesday, as the Bitcoin-tracking ETF continues to rally from its 50-day support level. GBTC was up 4.4%.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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