The Dow Jones Industrial Average rose as yields fell. Tesla (TSLA) skids after CEO Elon Musk’s warning.Warren Buffett’s stock tumbles despite news of his company Berkshire Hathaway (BRKB) bought more shares. Modena (MRNA) rose after CDC intensification.
While the market is in a correction, some healthy stocks look strong. Johnson & Johnson (JNJ) and pyrethene (CNC) are all entries of concern.
Volumes rose amid a positive market reversal. It rose on both the Nasdaq and the New York Stock Exchange, according to preliminary data.
Meanwhile, the benchmark 10-year U.S. Treasury yield fell 6 basis points to 3.1% as recession fears intensified. Federal Reserve Chairman Jerome Powell also maintained his hawkish stance against inflation during a second day of briefings to Congress on Thursday.
West Texas Intermediate crude fell 2% to around $104 a barrel.
Nasdaq leads small cap gains
The Nasdaq was the best performer, closing up 1.6%. data dog (DDOG) stood out with a 10.4% gain.
The S&P 500 was also strong, up 1%. Autodesk (ADSK) rose 8.4%.
US stock market overview today
Last update: 6/23/2022 4:24pm EST
S&P 500 sectors were mixed. Utilities and healthcare were the top performers. Energy and materials are laggards.
Small-cap stocks also outperformed, with the Russell 2000 up 1.1%.
Growth stocks, however, were hit by bears, with the Innovators IBD 50 ETF (FFTY) closing down 2.2%.
Dow Jones Today: Software stocks lead gains
The Dow Jones Industrial Average closed higher. It closed up 195 points, or 0.6%.
sales force (CRM) was the top Dow stock today, up more than 3%.
Industrial Machinery Inventory caterpillar (CAT) and energy games Chevron (CVX) was the worst performer.
Tesla stock falls after Elon Musk warning
Tesla shares fell after negative comments from CEO Elon Musk.
The eccentric executive expresses concerns about the company’s finances in an interview with Tesla owner groups
“The last two years have been an absolute nightmare of supply chain disruptions, one after the other,” Musk said. “We’re not out of the woods yet. Our biggest concern is how to keep the factory running so we can pay our employees and not go bankrupt.”
He also described the company’s new plants in Berlin, Germany and Austin, Texas, as “giant melting pots.”
Musk has previously revealed that the company wants to cut about 10% of its salaried workforce, even as it hires more hourly workers.
Tesla shares closed the day at a low, but were still down 0.4%. The top-ranked stock remains well below its 50-day moving average.
Warren Buffett’s stock rises as BRKB builds up
Warren Buffett stock western oil (OXY) rose on news that Berkshire Hathaway increased its stake in the oil company.
Overall pressure on energy stocks forced Occidental lower for a while, but ended the session up 0.6%.
Shares of OXY are now up more than 80% so far in 2022. Still, it stayed below the 50-day moving average after pulling back from the highs.
Buffett’s company Berkshire Hathaway added another 9.6 million shares. It now holds nearly $153 million, or more than 16% of the company.
Among other oil stocks, Karon Oil (CPE) fell nearly 4%, while Diamondback Energy (square) fell more than 5%.Apache Father APA (APA) fell about 3%.
The Vanguard Energy Index Fund ETF (VDE) is down nearly 4% but is still up more than 22% since the start of the year.
Moderna stock gets vaccine boost
Moderna shares rose on Thursday after advisers from the U.S. Centers for Disease Control and Prevention approved the company’s Covid vaccine for children ages 6 to 17.
Their independent panel of experts examined the vaccine’s safety and efficacy in a public meeting.
They found that boys between the ages of 12 and 17 had an increased risk of heart inflammation following the vaccine.
But they also believe the coronavirus itself carries a higher risk.
CDC Director Dr. Rochelle Walensky is now expected to sign off on the recommendation later Thursday.
Moderna shares closed up 5.3%.
Children in this age group can already be vaccinated by Pfizer (PFE) and its partners Biological Technology (BNTX). PFE rose 2.1%, while BNTX surged 7%.
Nasdaq leads rally as recession fears shake sector
Beyond the Dow: Health stocks to watch
It’s always a good idea to beef up one’s watch list when the market is in a correction. These names are solid choices.
Dow Jones stock Johnson & Johnson has seen a flat base evolve into a double bottom. According to MarketSmith’s analysis, the ideal buy point here is 181.84.
The stock managed to regain its 50-day moving average, which is a bullish sign. It yields 2.5%, beating the S&P 500’s average of 1.7%.
Johnson & Johnson is in the top 8% of stocks in terms of price performance over the past 12 months. Revenue is expected to grow 5% in 2022 and 6% in 2023.
Centene is another healthy stock showing signs of life. It also has a double bottom formation with an entry at 87.44. The RSI has just made a new high and is still in a strong long-term uptrend.
Profits are expected to increase, rising 9% this year and 13% in 2023. Big Money is a major backer of the stock, with funds currently holding a 66% stake.
Centene provides health plans and related healthcare management services.
Follow Michael Larkin on Twitter @IBD_MLarkin Learn more about growth stocks and analytics.
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