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The Dow Jones Industrial Average had risen nearly 300 points by noon on Friday, on track for a second straight week of big gains.
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The Dow Jones industrialists rose 1%, the S&P 500 by 0.9% and the Nasdaq by 0.6% on the stock market today. Small caps followed by the Russell 2000 outperformed with a 1.5% jump. Volume was higher on the two major exchanges compared to the same time Thursday.
For the week, the Dow Jones Index is heading for a gain of 3.5%, after last week’s nearly 7% surge. The S&P 500 is looking at a 1.5% lead and a new closing high. But the Nasdaq is forecasting a loss of 1.1% as tech and other household stocks took a beating earlier in the week.
The Nasdaq has gained 31% this year, while the S&P 500 is up 9% through Thursday’s close. The Dow Jones is up 2% and the Russell 2000 small cap is also up 2%. All four are back above their 10-week moving average. Read The Big Picture for a detailed daily market analysis.
It’s been a few unstable weeks. On September 30, the outlook for the IBD stock market was revised to “confirmed uptrend” versus “correcting market”. But on October 23, the outlook was downgraded to “bullish under pressure,” with stocks selling.
Snapshot of the US Stock Market Today |
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|---|---|---|---|---|
| Index | symbol | Price | Loss of profit | % Change |
| Dow Jones | (0DJIA) | 29,368.99 | +288.82 | +0.99 |
| S&P 500 | (0S and P5) | 3569.00 | +31.99 | +0.90 |
| Nasdaq | (0NDQC) | 11783.29 | +73.70 | +0.63 |
| Russell 2000 | (Etc.) | 172.36 | +2.38 | +1.40 |
| IBD 50 | (FFTY) | 37.56 | +0.20 | +0.54 |
Last updated: 12:00 PM ET 13/11/2020 |
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Last Wednesday, after polling day, the market outlook returned to a “confirmed uptrend” as the major indices staged large rallies. This gives the green light to buy leading stocks that are coming off solid foundations.
Covid-19 update
Meanwhile, Covid-19 cases continue to rise around the world. Worldwide coronavirus cases have exceeded 53.3 million, with more than 1.3 million deaths, according to Worldometer. In the United States, cases confirmed since the start of the pandemic are approaching 10.9 million, with a death toll of nearly 249,000.
As the race for a coronavirus vaccine or treatment heats up, Sciences of Gilead (GILD) climbed 1.3%, despite comments from a leading intensive care doctor about his treatment for the Veklury coronavirus (also known as remdesivir). Dr Jozef Kesecioglu, president of the European Society of Critical Care Medicine, told Reuters that remdesivir should not be used routinely in intensive care units.
Dow Winners
The biggest winner of the Dow, Cisco Systems (CSCO), moved away and climbed nearly 7% in high volume. This sent the stock permanently above its 50-day moving average, where it had encountered resistance this week.
Late Thursday, the networking giant reported first quarter fiscal year adjusted earnings and sales that fell from a year ago, but exceeded views. Cisco’s advice also exceeded expectations.
Among the other top notch winners, American Express (AXP), Boeing (BA), Chevron (CLC) and Goldman Sachs (GS) gained more than 2% each.
Disney (DIS) added 1.4% in intense trade after reporting better-than-expected fourth-quarter budget results on Thursday night. The theme park and media giant also forecasted a drop in coronavirus-related costs, as its Disney + service continued to register more subscribers.
Stocks jumped 4% early Friday, before stopping the gains. Disney stock is now back in the potential buy range from a buy point of 131.46 on a double basis, according to MarketSmith chart analysis.
… and a loser
But Apple (AAPL), down 0.9%, missed the lead. The title lost 0.2% Thursday. It holds above its 50 day line as it shapes a new base with a buy point of 138.08. Apple stock has risen more than 60% this year.
Airlines, energy, banks and hospitals led the rise among IBD’s 197 industry groups. Software, automakers and internet retail inventories were among the few groups to see minor declines.
Electric car stocks in motion
You’re here (TSLA) fell 1.4%, extending Thursday’s 1.3% loss. The stocks have encountered resistance at their 50 day line as they work on a handle cup with a buy point of 466. Tesla is an IBD Leaderboard stock.
Tesla Rival Li Auto (LI) jumped 28% to an all-time high before reducing its gain to 6.5%. Shares are still extended around 60% from a buy point of 21.96 from a cup whose handle was cleared on November 2.
The Chinese electric car maker reported mixed third-quarter results in its first earnings report after its recent IPO in the United States. The company expects deliveries of 11,000 to 12,000 vehicles in the fourth quarter, which would represent an increase of 27% to 38.6% from the third quarter.
More in the IBD 50, Futu Holdings (ENTER), Trex (TREX), Materials applied (AMAT), Pacira BioSciences (PCRX) and Taiwan Semiconductor (TSM) increased by more than 3% each.
Innovative IBD 50 ETF (FFTY) climbed 0.4% in Veeva Systems (VEEV), Ali Baba (BABA) and ServiceNow (NOW) has dropped by about 2% each.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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