Your Monday Blip 3/1/21

Your Monday Blip 3/1/21

Stocks bolted higher as investors reacted positively to the Johnson & Johnson news on its single shot vaccine approval and the stimulus bill that appears to be getting near approval from Congress. At the close the Dow was higher by 603 points to close at 31,535. Trading volume was lower which indicates that big institutional buyers were not leading the charge into stocks today. IBD has the current rally listed as “rally under pressure” so caution is advised.
US manufacturing activity increased to a three year high amid an acceleration in new orders. The latest ISM reading from January to February went from 58.7 to 60.8 and suggests the US economy is off to a good start for the year. This increase in factory activity was more remarkable given headwinds from the semiconductor chip shortage plaguing the auto industry and rising high raw material costs that are pressuring margins.
Riding the good news in manufacturing were shares of Boeing which today jumped higher by almost 6%. United Airlines announced it was boosting its 737 Max order by 25 jets and Saudi Arabia is said to be in the process of ordering Boeing airplanes as well. While Boeing still faces issues with the 777x program it appears the worst of the Max crisis is in the rear view mirror and blue skies might lay ahead.