Dow Jones Pares Big Early Gain; Stocks Mixed As Rally Fueled By Biden Bill Fades - Investor's Business Daily

Stocks were mixed midday as the Dow Jones Industrial Average erased most of its early 238-point gain fueled by the $1 trillion infrastructure bill.

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The Dow Jones industrials rose 0.15%, the Nasdaq climbed 0.1%, and the S&P 500 was flat in the stock market today. Small caps tracked by the Russell 2000 outperformed, up 0.6%. Volume was mixed, lower on the NYSE and higher on the Nasdaq, vs. the same time Friday.

Also, among exchange traded funds, Innovator IBD 50 (FFTY) rose 1.6%, while the Nasdaq 100-tracking Invesco QQQ Trust (QQQ) edged down 0.1%. The IBD 50 ETF is now shaping a new flat base with a 52.56 buy point.

Late Friday, the House passed the $1 trillion infrastructure bill, which includes $550 billion in new funding. The vote was 228-206, with 13 Republicans providing crucial support as six Democrats opposed the measure. The legislation, which already passed the Senate months ago, will go to President Joe Biden for his signature.

The passage of the infrastructure bill boosted related industry groups, such as steelmakers, construction machinery, heavy construction, cement, transportation equipment and metals distributors.

U.S. Stock Market Today Overview
Index	Symbol	Price	Gain/Loss	% Change
Dow Jones	(0DJIA)	36372.24	+44.29	+0.12
S&P 500	(0S&P5)	4697.30	-0.23	+0.00
Nasdaq	(0NDQC )	15986.78	+15.19	+0.10
Russell 2000	(IWM)	243.18	+1.37	+0.57
IBD 50	(FFTY)	52.43	+0.83	+1.61
Last Update: 12:12 PM ET 11/8/2021

Among the S&P sectors, the SPDR Materials ETF (XLB) rose 1.1% as it approaches an 89.31 buy point of a six-month flat base, according to MarketSmith chart analysis.

Covid Update

The U.S. economy continues to recover from the Covid-19 pandemic, which triggered nationwide lockdowns over a year ago. A resurgence in cases fueled by the more contagious delta variant has been slowing down as vaccinations rise.

Globally, Covid-19 cases are approaching 251 million, with over 5 million deaths, according to Worldometer. In the U.S., cases have surpassed 47 million with more than 775,000 deaths.

Infrastructure Stocks Rally

U.S. Steel (X) jumped more than 3% in heavy trade to break out past a 27.10 buy point of a cup with handle. It remains in potential buy range, which goes up to 28.46. The steel giant has recovered from losses and lower sales, with triple-digit earnings growth and 33% or higher revenue in the past three quarters.

Sterling Construction (STRL) gapped up and rose more than 6% in heavy volume to a 15-year high. Shares of the heavy construction and building services provider are now extended from a 25.84 buy point of a five-month consolidation.

Additionally, construction aggregates and ready-mixed concrete producer Vulcan Materials (VMC) gained 3% in twice normal trade. The stock is near the top of its buy range, which goes up to 203.98.

Deere & Co. (DE) climbed 2% as it builds the right side of a double-bottom base with a 393.10 buy point. The tractor and combine giant's stock is about 7% away from the entry.

Caterpillar (CAT) led the Dow Jones industrials with a 3.2% gain in heavy volume as the stock aims to retake its 200-day moving average for the first time in over two months. CAT is working on the right side of a 22-week consolidation with a 246.79 buy point.

Over in the IBD 50, Cleveland-Cliffs (CLF) gapped up and surged nearly 7% in heavy trade. The steelmaker, bouncing off its chart's 50-day moving average, is expected to benefit from the infrastructure bill.

Travel Stocks Soar

Also in Monday's market action, airline and other travel stocks rallied as the U.S. lifted travel restrictions to vaccinated travelers from 33 countries. Among IBD's industry groups, airlines soared nearly 2%, travel bookers advanced 1% and lodging stocks added 0.6%.

Expedia (EXPE), up 3% in busy trade, cleared a 188.03 buy point of a cup base before easing below the entry. The buy zone tops out at 197.43. The online travel booker returned to a profit in Q3, after six straight quarters of losses due to shutdowns stemming from the Covid-19 pandemic.

Airbnb (ABNB) rallied nearly 5% in early trade before paring its gain to 1% by midday. The IBD Leaderboard stock is well-extended from a 177.06 buy point cleared last week. Shares soared 13% on Friday, after the online lodging marketplace reported Q3 earnings and revenue that jumped a respective 239% and 67%.

Advanced Micro Devices (AMD) led the IBD 50 and the Nasdaq 100, spiking 10% higher in fast turnover. The company launched several new products at its virtual Accelerated Data Center Premiere, and confirmed that Facebook (FB)/Meta had adopted AMD's EPYC to power its infrastructure and the buildout of Frontier, the first U.S. exascale supercomputer.

AMD shares soared passed the 20%-25% profit-taking goal from a 114.59 buy point of a double-bottom base. The graphics-chip designer leads the 32-stock fabless semiconductor group with a 99 Composite Rating and 99 Earnings Per Share Rating. AMD is also an IBD Leaderboard stock.

Callon Petroleum (CPE) vaulted 7% in heavy volume to a two-year high. Shares broke out past a 61.59 buy point of a cup with handle. They're now just out of buy range, which topped out at 64.67. The stock has been rallying since the oil producer reported earnings last week.

Follow Nancy Gondo on Twitter at @IBD_NGondo

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Dow Jones Pares Big Early Gain; Stocks Mixed As Rally Fueled By Biden Bill Fades - Investor's Business Daily
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