The Dow Jones Industrial Average rallied as yields fell. You’re here (TSLA) slipped after CEO Elon Musk issued a warning. Warren Buffett stock fell despite news of his company Berkshire Hathway (BRKB) had bought more shares. Modern (MRNA) rose after a boost from the Centers for Disease Control.
A few healthcare stocks look solid despite the market being in the throes of a correction. Johnson & Johnson (JNJ) and centene (CNC) are both in the running.
Volume increased amid a positive market reversal. It rose on both the Nasdaq and the New York Stock Exchange, according to preliminary data.
Meanwhile, the yield on the benchmark 10-year Treasury slipped six basis points to 3.1% amid growing recession fears. Fed Chairman Jerome Powell also maintained his hawkish stance on fighting inflation in a second day of congressional briefing Thursday.
West Texas Intermediate crude oil fell 2% to trade at around $104 a barrel.
Nasdaq leads as small caps gain
The Nasdaq was the best performer, ending the day up 1.6%. Datadog (DDOG) stands out with a gain of 10.4%.
The S&P 500 also showed strength rising 1%. Autodesk (ADSK) shone by jumping 8.4%.
Overview of the US stock market today
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Last Updated: 4:24 PM ET 06/23/2022
S&P 500 sectors were mixed. Utilities and health care were the best performing sectors. Energy and materials lagged.
Small caps also shone, with the Russell 2000 posting a 1.1% gain.
Growth stocks were mangled by the bears, however, with the Innovator IBD 50 (FFTY) ETF ending the day down 2.2%.
Dow Jones Today: Software Stock Leads Higher
The Dow Jones Industrial Average rallied at the close. It closed up 195 points, or 0.6%.
Selling power (CRM) was the most important stock in the Dow Jones today, as it gained more than 3%.
Park of industrial machines caterpillar (CAT) and energy play Chevron (CVX) were the worst performers.
Tesla Stock Drops After Elon Musk’s Warning
Tesla stock fell after negative comments emerged from CEO Elon Musk.
The quirky executive voiced fears about the company’s financial health during an interview with a group of Tesla owners
“The last two years have been an absolute nightmare of supply chain disruptions, one thing after another,” Musk said. “We’re not out of it yet. Our main concern is how to keep the factories running so we can pay people and not go bankrupt.”
He also described the company’s new factories in Berlin, Germany and Austin, Texas as “gigantic money furnaces”.
It comes after Musk previously revealed the company was looking to cut around 10% of its salaried workforce even as it hired more hourly production workers.
Tesla stock closed the day with lows but still fell 0.4%. The former Leaderboard stock remains entrenched well below its 50-day moving average.
Warren Buffett shares gain as BRKB adds shares
Warren Buffett Stock western oil (OXY) rallied on news that Berkshire Hathaway had increased its stake in the oil company.
The pressure on energy stocks overall forced Occidental lower for a while, but it ended the day up 0.6%.
OXY stock is now up over 80% so far in 2022. Nonetheless, it remains stuck below its 50-day moving average after falling from highs.
Buffett’s Berkshire Hathaway Company added another 9.6 million shares. It now owns nearly 153 million, which represents more than 16% of the company.
Among other oil stocks, Callon Oil (CPE) fell nearly 4% while Diamondback Energy (FANG) fell more than 5%. apache parent PAA (APA) fell about 3%.
The Vanguard Energy Index Fund ETF (VDE) fell nearly 4%, but remains up more than 22% year-to-date.
Moderna Stock gets a vaccine boost
Moderna’s stock rose Thursday after advisers from the Centers for Disease Control and Prevention approved the company’s Covid vaccine for children ages 6 to 17.
TSWT expert panel had reviewed the safety and effectiveness of the vaccine at a public meeting.
They found that there is a high risk of heart inflammation after vaccination in boys aged 12 to 17.
But they also decided that the coronavirus itself carries a higher risk.
CDC Director Dr. Rochelle Walensky is now expected to approve the recommendation later Thursday.
Moderna stock ended the day up 5.3%.
Children in the age group can already take vaccines manufactured by Pfizer (PFE) and its partner BioNTech (BNTX). PFE rose 2.1% while BNTX jumped 7%.
The Nasdaq leads the rally as recession fears rock this sector
Outside of Dow Jones: Entries in Healthcare Stocks
It’s always a good idea to add to your watch list when the market is in a correction. These names are solid options.
Dow Jones Johnson & Johnson stock saw a flat bottom move into a double bottom. The sweet spot here is 181.84, according to MarketSmith analysis.
The stock managed to retake the 50-day moving average, which is a bullish sign. It offers a yield of 2.5%, which beats the S&P 500 average of 1.7%.
JNJ is in the top 8% of stocks by price performance over the past 12 months. Revenues are expected to grow 5% in 2022 and 6% in 2023.
Centene is another health stock that is showing signs of life. It also has a double bottom pattern, with an entry of 87.44. The relative strength line has just reached a new high and remains on a strong long-term uptrend.
Earnings are expected to rise, with 9% growth this year and 13% growth expected in 2023. Big Money is a major backer of the stock, with 66% of shares currently held by funds.
Centene provides health plans and related healthcare management services.
Please follow Michael Larkin on Twitter at @IBD_MLarkin to learn more about growth stocks and analysis.
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