The Dow Jones Industrial Average pared gains as the stock market made mild gains. Treasury Secretary Janet Yellen called for more aggressive government spending, even as Republicans came up with an infrastructure spending offer way short of the plan mooted by President Joe Biden.
Boeing (BA) was the leading blue chip, while General Electric (GE) was closing in on a buy point amid an aerospace rally. TransDigm (TDG) and Hilltop Holdings (HTH) staged breakouts.
XYellen Calls For Spending; Republicans Make Biden Offer
Yellen has called for more spending, claiming the government is operating on a budget that has been stagnant for 11 years.
"Our team has done valiant work implementing these programs with the resources at our disposal," Yellen told the House Subcommittee on Financial Services and General Government Committee on Appropriations. "But we cannot continue to be good stewards of this recovery — and tackle the new bodies of work that Congress assigns to us in the years beyond — with a budget that was designed for 2010."
The former Fed Chair's comments come as President Biden gets set to release his first budget, a $6 trillion package that is expected to carry big tax increases and deficit spending.
Meanwhile, Republicans have made Biden an infrastructure spending offer that falls well short of his demands. Biden's latest offer to Republicans was $1.7 trillion, while the Republican offer stands around $1 trillion.
Nasdaq, S&P 500 Gain
The tech-heavy Nasdaq was up, though gains were slim. It rose around 0.3%. Micron Technology (MU) was making the biggest move, rising more than 2%.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 34441.52 | +118.47 | +0.35 |
| S&P 500 | (0S&P5) | 4207.07 | +11.08 | +0.26 |
| Nasdaq | (0NDQC ) | 13773.08 | +35.08 | +0.26 |
| Russell 2000 | (IWM) | 225.66 | +2.31 | +1.03 |
| IBD 50 | (FFTY) | 44.83 | +0.37 | +0.83 |
Last Update: 1:22 PM ET 5/27/2021 |
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The S&P 500 was also up by 0.3% The biggest gainer here was Ford (F), whose gain of almost 6% lifted it out of buy zone past a 13.72 entry.
The S&P sectors were mostly positive, with industrials and materials posting the biggest gains. Energy and utilities were the biggest laggards.
Small caps were outperforming once again, with the Russell 2000 up 1%. Growth stocks were also doing better than the major indexes, with the Innovator IBD 50 ETF (FFTY) gaining almost 1%.
Boeing Stock Leads Dow Jones Higher
The Dow Jones Industrial Average was the leading major index, barely. It rose a paltry 0.4%.
Boeing was the top-performing component, rising more than 3%. The move allowed it to retake its 50-day moving average.
Honeywell (HON) was another of the top performing components. The conglomerate, which has an aerospace division, was up more than 2%.
Aerospace stocks were broadly lifted after Airbus (EADSY) announced ambitious production plans. The firm is aiming to produce 64 A320 aircraft per month by the second quarter of 2023. Airbus stock gapped up past a flat base buy point of 31.40, MarketSmith analysis shows. It remains in its buy zone.
GE Stock Eyes Buy Point
The Airbus move boosted General Electric, which rose almost 6%. This puts it within striking distance of a buy point of 14.51.
The relative strength line has been bending higher of late, but it remains off March highs. GE, which makes jet engines, has a poor IBD Composite Rating of 45, with earnings performance a major weakness.
However, share-price performance has been improving under the leadership of CEO Larry Culp, with the stock gaining more than 30% so far in 2021.
TranDigm Stock Leads Breakouts
TransDigm was also benefiting from the rally in aerospace stocks. The aircraft component manufacturer moved above a flat base entry of 633.14. Its buy zone tops out at 664.80.
The RS line is spiking, which is bullish, while volume was high on the breakout.
The move saw the stock added to the prestigious IBD Leaderboard.
Hilltop Holdings was also making a bullish move, breaking out of a cup with handle base. The ideal buy point here is 37.18. But shares eased below the entry in afternoon trading. The banking stock has a near-perfect Composite Rating of 98, with earnings a key strength.
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May 28, 2021 at 12:42AM
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Dow Jones Leads As Yellen Calls For More Government Spending; GE Stock Eyes Buy Point - Investor's Business Daily
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