With roughly an hour to go in the regular session, major indexes strode higher in unison. But the Nasdaq composite’s gain of nearly 1.2% still beat a rise of 1% by the S&P 500 and 0.8% by the Dow Jones Industrial Average. Meanwhile, iShares Russell 2000 (IWM) lagged with a 0.3% increase.
SPDR Utilities (XLU) enjoyed a 0.9% move up and is having a great week, up 2.6%.
The yield of XLU, an exchange traded fund, is 3%. That more than doubled the S&P 500’s yield of roughly 1.4%.
The yield on the U.S. Treasury key 10-year bond plunged by nearly 10 basis points to 1.53%, according to Cboe data. This huge buyback of bonds follows robust data on the U.S. economy.
While weekly initial jobless claims sank to 576,000 for the week ended April 10, way below the Econoday forecast of 769,000, Wall Street applauded rises in factory activity. They include the latest results of the Empire State Manufacturing Index (26.3 for April vs. 17.4 in March) and the Philadelphia Federal Reserve’s gauge (50.2 in April vs a revised 44.5 figure for March). Please see details in the economic calendar.
Stocks Today: Coinbase Rallies Again, Albeit Mildly
U.S. Stock Market Today Overview
Last Update: 3:06 PM ET 4/15/2021
Coinbase, a major platform for cryptocurrency trading, vaulted to as high as 429.54 on its Nasdaq debut before plunging from that peak to end its first day of trading at 328.28. On Thursday, shares of the fintech play mustered only a 1% advance.
The wild action on its debut reaffirms the importance of any IPO stock to initially trade at least a few weeks, if not months, to establish a meaningful trading range. Out of this action may emerge a bullish IPO base.
With 197 million shares outstanding, Coinbase is clearly a large cap with a market value of $66 billion. In the fourth quarter of 2020, the company earned 90 cents a share vs. a 14-cent net loss a year earlier. Revenue soared 495% to $585 million.
The top line grew 188% in Q1 of last year, fell 12% in Q2, and rebounded 99% in Q3.
Be sure to first wait for a high-quality stock to surpass its buy point, ideally in heavy volume, before buying the stock. Second, stay disciplined with your buys by not chasing them outside the 5% buy zone.
Floor & Decor is trying to regain a 108.64 entry after clearing it on Friday. The home improvement play has already vaulted 367% from its coronavirus bear market low of 24.36 back in March of 2020. So, given that strong advance, it’s also possible for the stock to move sideways after its latest breakout and perhaps form a bullish base-on-base chart pattern.
Yeti and Floor & Decor hold spots in IBD Leaderboard.
Adobe (ADBE) and Century Communities (CCS), a fast-growing homebuilder, also are in the buy zone after staging new breakouts. The latter is trying to stretch past a 65.10 entry point in a three-weeks-tight pattern. See chart annotations on Century Communities in Leaderboard.
Adobe is an IBD Long-Term Leader.
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