Stock Market Falls After Shutdown Averted; Covid Drug News Boost
The stock market erased early gains Friday morning despite that the U.S. government avoided a shutdown, economic data improved and a trial of a Covid-19 treatment showed promise.
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Late Thursday, President Biden signed a bill that extends government funding through Dec. 3, after Congress passed the bill in the eleventh hour before a deadline. The bill avoided a partial government shutdown. But lawmakers continue to tussle over infrastructure and other major spending bills.
The stock market Friday reduced early gains.
The Nasdaq erased an opening gain and was down 0.7%. The S&P 500 lost 0.3% and the Russell 2000 eased 0.2%.
Volume was lower on the Nasdaq and higher on the NYSE compared with the same time on Thursday.
Merck Drug A Possible Breakthrough
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 33865.28 | +21.36 | +0.06 |
| S&P 500 | (0S&P5) | 4296.90 | -10.64 | -0.25 |
| Nasdaq | (0NDQC ) | 14349.34 | -99.24 | -0.69 |
| Russell 2000 | (IWM) | 218.32 | -0.43 | -0.20 |
| IBD 50 | (FFTY) | 45.87 | -1.50 | -3.17 |
Last Update: 10:18 AM ET 10/1/2021 |
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The Dow Jones Industrial Average rose 0.3% after Merck (MRK) soared more than 8%, gapping above the 79.33 buy point of a base. Merck and partner Ridgeback Biotherapeutics said a trial of their experimental Covid-19 drug showed it helped prevent high-risk patients from becoming seriously ill or dying.
Covid-19 vaccine maker Moderna (MRNA) gapped down to a loss of more than 9%, sending the stock back to the lows of its base. BioNTech (BNTX) slid 14%. Novavax (NVAX), another vaccine maker, plunged 20% and is below the 200-day line.
The Covid drug news boosted travel stocks. Airlines, travel booking, lodging, casinos and leisure services were five of the top seven industry groups.
Travel Stocks Lead Stock Market
Airline stocks ascended after a three-day losing streak. U.S. Global Jets (JETS), an ETF that tracks airline stocks, jumped 3.6%.
Southwest Airlines (LUV) surged 5% after JPMorgan upgraded the discount carrier to overweight from neutral and raised the target price to 70 from 64. Southwest shares are in a correction and are trying to move back above the 200-day moving average.
Delta Air Lines (DAL), Gol Intelligent Airlines (GOL), Hawaiian (HA), United Airlines (UAL), Azul (AZUL) and Frontier Group (ULCC) also rose more than 5%. But they remain deep in price corrections.
Hotel, Casino Stocks Rally
Booking Holdings (BKNG) is heading back toward a 2,516.10 buy point. Hilton Worldwide (HLT) regained a 136.99 buy point. Wyndham Hotels & Resorts (WH) is near a 78.23 buy point. Caesars Entertainment (CZR) was the best performing stock in the IBD 50 this morning, up 4%.
Meme stock AMC Entertainment (AMC) rallied more than 3% after it set a repurchase of $35 million in debt to obtain lower interest costs. The stock is trying to regain the 50-day moving average as it works through a deep decline.
Innovator IBD 50 ETF (FFTY) slid more than 3% and is close to the 200-day moving…
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