The Dow Jones Industrial Average closed near session highs as the stock market powered back. Airline stocks including American Airlines and Delta Air Lines surged on the lifting of the mask mandate. WeWork shot higher on a bullish analyst note. Boeing was a top blue chip.
A number of stocks managed to make bullish moves amid the encouraging market action. New Leaderboard stock Edwards Lifesciences passed an aggressive entry, while Extra Space Storage and HireRight staged breakouts.
Volume was mixed, falling on the New York Stock Exchange but rising on the Nasdaq according to early data.
Meanwhile, the yield on the benchmark 10-year Treasury note popped about seven basis points to 2.93%. Oil skidded, with West Texas Intermediate crude down 5.2% to under $103 per barrel.
Nasdaq Surges As Small Caps Rally
The Nasdaq fared best out of the major indexes, closing up 2.2%. Intuitive Surgical was a top performer here, rising 6.7%.
The S&P 500 also roared higher, ending the day with a 1.6% gain. Signature Bank impressed here, rising 8.1% on earnings.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 34912.88 | +501.19 | +1.46 |
| S&P 500 | (0S&P5) | 4462.48 | +70.79 | +1.61 |
| Nasdaq | (0NDQC ) | 13619.66 | +287.30 | +2.15 |
| Russell 2000 | 201.55 | +3.93 | +1.99 | |
| IBD 50 | 36.61 | +0.29 | +0.80 | |
Last Update: 4:04 PM ET 4/19/2022 |
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The S&P sectors were mostly positive. Consumer discretionary, real estate and communication services were shining brightest while energy was the only area giving up ground.
Small caps gave bears a bloody nose too, with the Russell 2000 jumping 2%.
Growth stocks underwhelmed in comparison. The Innovator IBD 50 ETF, a bellwether for growth stocks, rose 0.8%.
Dow Jones Jumps As Boeing Stock Vaults
The Dow Jones Industrial Average ended the day with a gain of nearly 500 points. It rose 1.5%.
Boeing was a top performer here thanks to a gain of 3.4%. It remains below its 50-day moving average according to MarketSmith analysis.
But Nike fared even better with a 4.1% gain. Travelers was the worst Dow laggard. It dipped 4.9% on earnings.
Airline Stocks Fly Higher On Mask Mandate Move
Airline stocks flew higher after the Transportation Security Administration said it will no longer enforce mask mandates on planes.
The decision came hot on the heels of a federal ruling that the CDC had overstepped its authority with the mandate.
U.S. District Judge Kathryn Kimball Mizelle, who was appointed by President Donald Trump, said the agency had failed to explain its reasons for the mandate. She also said it had violated federal procedures for issuing new rules by failing to allow public comment.
American Airlines closed the day with a gain of 5.7% while Delta rose 2.1%. United Airlines gained 4.4%; Southwest Airlines moved 2.3% higher.
WeWork Stock Rockets On This
There are few companies more controversial than shared workplace play WeWork.
Nevertheless, it netted investors a rich gain of 8% Tuesday. Volume was not ideal as the price spiked upward, coming in only just above average.
Piper Sandler analyst Alexander Goldfarb initiated coverage on the stock with an overweight rating. He set a target price of 10 per share.
Goldfarb said that while the stock's "storied past" is well known, not many realize the firm is on a path to be profitable by late 2023 or early 2024. He also believes its "flexible workstation business" could flourish in the post-Covid economy.
The stock has a long way to go before it is deemed worthy by the CAN SLIM cognoscenti.
At the moment it boasts a poor EPS Rating of 23. In addition, it is in the bottom 11% of stocks in terms of price performance over the past 12 months.
Market Makes Bullish Move, But Futures Fall As Netflix Dives
Three Stocks Pass Buy Points
Heart-valve replacement stock Edwards Lifesciences has moved above an aggressive trendline within its handle.
Those with more patience may choose to wait for it to clear its cup-with-handle standard entry of 125.21. EW is set to post earnings next week, which adds risk.
The encouraging action saw EW stock win a spot on the prestigious IBD Leaderboard list of top stocks earlier on Tuesday.
Extra Space Storage broke out of a cup with handle. Volume improved as the session wore on, ending around 20% above normal but still light for a breakout.
The relative strength line is at new highs, which is a bullish sign. The stock is actionable once again after previously moving above an earlier handle entry at 211.15. Extra Space has been doing well amid overall outperformance by self-storage REITs of late.
Workforce management software firm HireRight surged past a 17.85 cup-with-handle buy point.
It exploded higher in strong volume, though it closed off session highs. Wall Street expects earnings to pop 452% in 2022 and by 22% in 2023. Big money has also been snapping up the stock in recent weeks, which is a positive indicator.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
