Dow Jones Up 370 Points This Week Ahead Of Biden Budget Plan; These Stocks Soar

The Dow Jones Industrial Average headed for a third straight gain Friday, on track for a 370-point jump for the week and a 2% gain for May.


The Nasdaq rose 0.5%, the Dow Jones industrials added 0.3% and the S&P 500 climbed 0.3% in today’s stock market. Small caps tracked by the Russell 2000, up 0.1%, lagged. Volume was higher on both major exchanges vs. the same time Thursday.

President Joe Biden is expected to unveil his $6 trillion federal budget for fiscal 2022 Friday, providing additional detail on massive investment in the U.S. economy planned over the next several years.

Personal income fell 13.1% in April, the Commerce Department reported early Friday, vs. economist forecasts for a 0.5% increase. Income had jumped 20.9% in March. Consumer spending rose 0.5%, below views for a 0.6% increase and down from a 4.7% rise in March.

For the week, the Nasdaq is headed for a 2.4% gain to retake its 10-week moving average. But after a tough May, it could end a six-month win streak. The S&P 500 and Dow are on track for a respective 1.3% and 1% weekly advance. Both are poised for a fourth straight monthly gain.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 34579.62 +114.98 +0.33
S&P 500 (0S&P5) 4215.04 +14.16 +0.34
Nasdaq (0NDQC ) 13806.34 +70.06 +0.51
Russell 2000 (IWM) 225.88 +0.23 +0.10
IBD 50 (FFTY) 45.28 +0.09 +0.20
Last Update: 12:00 PM ET 5/28/2021

Last year, tech stocks boosted the Nasdaq to a 43.6% gain — its fifth-best year ever. The S&P 500 rose 16.3% in 2020, and the Dow added 7.2%. Read The Big Picture for more detailed daily market analysis.

Covid-19 Update

The U.S. economy is recovering from the Covid-19 pandemic, which triggered nationwide lockdowns over a year ago. But many states are relaxing restrictions, and cases are plateauing or declining in some states as vaccinations continue to roll out.

Cumulative Covid-19 cases worldwide have topped 169 million, with more than 3.5 million deaths, according to Worldometer. In the U.S., cases are approaching 34 million with nearly 608,000 deaths, although the number of new cases and deaths in the U.S. has slowed dramatically in many states.

Dow Jones Winners And Losers (CRM) surged 6% in heavy trade to gap up above its 200-day moving average for the first time this month. The customer relationship management software maker reported earnings and revenue that beat Wall Street targets. It also offered Q2 guidance above views.

CRM stock is building the right side of a consolidation with a 271.02 buy point, according to MarketSmith chart analysis. It’s about 12% away from the entry.

Other blue chip winners include Amgen (AMGN) and Johnson & Johnson (JNJ), up more than 1% apiece. J&J stock is getting close to a 173.75 buy point of a four-month flat base.

On the downside, Boeing (BA) fell 1.9% and Intel (INTC) was down nearly 1%.

Outside The Dow

Specialty retail, software and chip stocks led the upside among IBD’s 197 industry groups. But consumer electronics retailers, department store and apparel stocks underperformed.

In the specialty retail group, Ulta (ULTA) gapped up and rose more than 5% in heavy volume, on pace for a fourth straight advance. Late Thursday, the beauty products and salon chain reported a Q1 earnings beat and a 66% jump in same-store sales.

Ulta stock is approaching a 351.10 buy point of a 12-week consolidation.

Medical software maker Veeva Systems (VEEV) vaulted 11% in fast turnover after crushing earnings and sales estimates late Thursday. Veeva earned 91 cents per share on $433.6 million in sales. Veeva stock is moving further above the 50-day line. Shares remain about 10% off their 52-week high.

Market Rally Gains Steam; Four Stocks In Buy Zones

AMC Stock Goes Vertical

AMC Entertainment (AMC) rocketed as much as 38% early Friday, before erasing most of its gains to about 4% midday. On Thursday, shares surged 35%. AMC stock is on track for a more than 130% gain this week.

Recent IPO and IBD 50 stock Cricut (CRCT) soared 17% to a new high. Cricut, which went public in March, recently reported a triple-digit profit and sales gain for Q1. The Utah-based company makes connected devices, accessories and materials that enable people to make do-it-yourself and craft goods.

Ulta, Veeva, AMC and Cricut all got airtime on the IBD Live show this past week.

The Innovator IBD 50 ETF (FFTY) edged 0.2% higher after reclaiming its 50-day line on Thursday. Other IBD 50 winners Friday include Progyny (PGNY) and PLBY Group (PLBY), up about 4% each.

Follow Nancy Gondo on Twitter at @IBD_NGondo


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