The Dow Jones Industrial Average was leading a broad stock market fight-back amid improving jobless claims data. Cisco Systems (CSCO) and International Business Machines (IBM) were the leading blue chips, while Moderna (MRNA) stock was plunging despite reporting its first-ever profit.
The Labor Department reported a drop to 498,000 initial jobless claims in the week ended May 1. This beat forecasts for a decline to 533,000 claims.
That was also down from the prior week’s 590,000 claims, and the first week of fewer than 500,000 claims since the start of the pandemic.
Nasdaq, S&P 500 Turn Positive
The Nasdaq briefly rallied out of the red, but was basically flat. Pinduoduo (PDD) was the top performer, rising almost 4%.
The S&P 500 fared better, turning in a gain of around 0.3%. Corn flakes behemoth Kellogg (K) was the big winner here, gaining around 8% as earnings and revenue surpassed estimates.
U.S. Stock Market Today Overview
Last Update: 1:16 PM ET 5/6/2021
The S&P sectors were largely positive. Consumer staples and communication services were leading, while health was the biggest laggard.
Home Depot Stock Helps Dow Jones
The Dow Jones Industrial Average was the leading major index, posting a gain of 0.5%.
Cisco Systems was the best performing component, turning in a gain of around 2.5%. The gain saw Cisco stock break a downtrend.
IBM stock was following closely behind, turning in a gain of around 2%.
Amgen (AMGN) was the biggest laggard, falling around 0.6%.
Moderna Plunges Despite Profit
Moderna stock was battered lower after its first full quarter of Covid vaccine sales lagged forecasts. This overshadowed the fact it managed to post a profit for the first time ever. It has also been plunging on fears the Biden administration could waive patent protection for Covid vaccines.
Moderna posted adjusted EPS of $2.84 per share. That swung from a 35-cent loss in the year-earlier period, and was well clear of analyst views. However $1.94 billion in revenue, including $1.73 billion in sales of its Covid vaccine, was lower than expected. Wall Street was looking for $2.06 billion in sales.
Guidance for 2021 was a bright spot however. The firm expects $19.2 billion in sales this year based on its already-scheduled deliveries. Moderna also boosted its outlook for doses manufactured to 800 million this year. It’s still working to hit 1 billion.
The biotech stock has plunged after nearly reaching a cup-base buy point at 189.36, according to MarketSmith analysis. It is down more than 2% for the day, and has surrendered more than 11% for the week.
Deere Stock Leads Breakouts
Deere was the IBD 50 Stocks To Watch pick for Wednesday.
North Carolina-based supermarket play Ingles Markets is also in a buy zone after breaking out of a flat base. The ideal entry point here is 65.75. Earnings are this stock’s key strength, with its EPS Rating a strong 93 out of 99.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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