MARKETS: Dow surges into the close, up 268 points — YF Premium is bullish on Abbvie (ABBV)

Yahoo Finance's Jared Blikre joins Seana Smith to break down the day's price action in stocks as well as a long in Abbvie (ABBV), a Yahoo Finance Premium Investment Idea.

Video Transcript

MYLES UDLAND: Let's go over to Jared Blikre now for a look at this market. Again, all three majors higher as we head towards the bell, but losing a bit of steam towards the end of today's session. Jared.

JARED BLIKRE: Yeah, losing a little bit of steam but not seeing the weakness that we had early on in the session. And that was caused by the big mega cap FANG stocks being mostly in the red. If we take a look at the NASDAQ 100 here in the YFi interactive, we can still see a lot of them are in the red but not by nearly as much as it had been earlier in the day. And importantly, Microsoft crawling into the green here.

Tech software had been weak. Chip stocks were doing OK. But if you lose the big guys, the FANGs, and the software names, which we're going to take a look at here, you're not going to have a lot to work with. The energy sector, materials, and industrials, discretionary, those are all outperforming. So we're seeing that Dow in a little bit better shape here.

But just looking at the indices, we can see the Dow, now, is up about 145 points. NASDAQ is up 14 basis points. Had been in the red most of the day. And the S&P 500 up about 1/3 of a percent.

I want to turn now to our Yahoo Finance Premium idea of the day. And that is a long in AbbVie. And in this stock, this is presented by [INAUDIBLE] Research. They are doing a fundamental analysis. Now, they're maintaining their hold on this for a couple of reasons I'll get into. But they are increasing the long-term target to $115. That would be somewhere up here. And that's an appreciation of potentially 27%. If you're looking for a stop, we've got a cheap one here at about 88 and under the 200-day in this price action here at 80.

Just a couple of bullet points on what they're saying about AbbVie. They completed their merger with Allergan in May. And this is diversifying its revenue and substantially expanding its product portfolio.

Now, they are issuing some caution that Humira will face competition from biosimilars in the US. That's beginning in early 2023. And so that's why they're maintaining their long-term hold rating. Humira represents about 30% of the combined AbbVie-Allergan revenue. But they also note that the shares carry a dividend yield of about 5.1%, which they view as very attractive during a period of market volatility and economic uncertainty.

And this is our Yahoo Finance Premium idea of the day. You can sign for a free trial for 14 days at YahooFinance.com. Myles.