Stock Market News for Aug 24, 2021
U.S. stock markets rallied on Monday after a disappointing last week.
U.S. stock markets rallied on Monday after a disappointing last week. Investors’ confidence was boosted by FDA’s full approval of the first COVID-19 vaccine. Additionally crude oil prices have also rebounded. All three major stock indexes ended in positive note.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.7% or 215.63 points to close at 35,335.71. Notably, 21 components of the 30-stock index ended in the green while 9 in red. Moreover, the tech-heavy Nasdaq Composite finished at 14,1942.65, gaining 1.3% or 227.99 points due to strong performance by large-cap stocks. This marked a fresh closing high for the index. The tech-laden index hit an all-time high of 14,963.47 in intraday trading.
Meanwhile, the S&P 500 moved up 0.8% to end at 4,4479.53, marking a new closing high. The Technology Select Sector SPDR (XLK), the Energy Select Sector SPDR (XLE), the Consumer Discretionary Select Sector SPDR (XLY) and the Communication Services Select Sector SPDR (XLC) rallied 1.3%, 3.8%, 1.3% and 1.2%, respectively, while the Utilities Select Sector SPR (XLU) fell 1.3%. Eight out of eleven sectors of the broad-market index closed in positive territory while three in red.
The fear-gauge CBOE Volatility Index (VIX) was down 7.6% to 17.15. A total of 8.63 billion shares were traded on Monday, lower than the last 20-session average of 9.15 billion. Advancers outnumbered decliners on the NYSE by a 2.46-to-1 ratio. On Nasdaq, a 2.81-to-1 ratio favored advancing issues.
FDA Grants First Full Approval of COVID-19 Vaccine
On Aug 23, the U.S. Food and Drug Administration granted first approval to the COVID-19 vaccine developed by Pfizer Inc. PFE and BioNTech SE BNTX for people age 16 and above. The regulator also granted emergency-use authorization for those between 12 and 15 and for immunocompromised individuals who qualify for a third shot. Consequently, shares of Pfizer and BioNtech climbed 2.5% and 9.6%, respectively. Both stocks carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A full approval of the vaccine is expected to convince many Americans who are still reluctant to receive a shot despite rapid spread of the highly-infectious Delta variant of coronavirus. More than 60% of the U.S. citizens have already received at least a shot.
Full approval of a COVID-19 vaccine is extremely positive for air and leisure travel operators. These companies are operating under strict restrictions as vaccination for all are compulsory to travel. As a result, shares of Delta Air Lines Inc. DAL and American Airlines Group Inc. AAL climbed 2.9% and 3.3%, respectively.
Crude Oil Prices Rebound
Crude oil prices rebounded on Monday, terminating a seven-day losing streak, the largest since 2019. The U.S. oil benchmark - West Texas Intermediate crude futures - surged $3.50 or 5.6%, to settle at $65.64 per barrel. The global oil benchmark – Brent crude – moved up 5.5% or $3.57, to $68.75 per barrel. Consequently, shares of Diamondback Energy Inc. FANG and Occidental Petroleum Corp. OXY jumped 5.9% and 6.9%, respectively.
The National Association of Realtors reported that the existing homes sales in July rose 2% from June to a seasonally adjusted, annualized rate of 5.99 million units. The consensus estimate was 5.84 million units. June’s data was revised upward from 5.86 million units to 5.87 million units. Year over year, existing home sales grew 1.5%.
The IHS Markit reported that its flash U.S. composite index for manufacturing and service dropped to 55.4% in August, marking an eight-month low. However, any reading above 50% indicates expansion in private sector. The flash services index fell to 55.2% in August from 55.9% in July, marking its lowest since December 2020. The flash manufacturing index dropped to 61.2% in August from 63.4% in July, reflecting a four-month low.
Tech IPOs With Massive Profit Potential
In the past few years, many popular platforms and like Uber and Airbnb finally made their way to the public markets. But the biggest paydays came from lesser-known names.
For example, electric carmaker X Peng shot up +299.4% in just 2 months. Think of it this way…
If you had put $5,000 into XPEV at its IPO in September 2020, you could have cashed out with $19,970 in November.
With record amounts of cash flooding into IPOs and a record-setting stock market, this year’s lineup could be even more lucrative.See Zacks Hottest Tech IPOs Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Pfizer Inc. (PFE): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
Occidental Petroleum Corporation (OXY): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Diamondback Energy, Inc. (FANG): Free Stock Analysis Report
BioNTech SE Sponsored ADR (BNTX): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research