The Dow Jones Industrial Average accelerated almost 500 points more in the middle of the day, despite more modest gains earlier as coronavirus cases continue to increase in the United States.
The Dow Jones index rebounded 1.9%, the S&P 500 rose 1.2% and the Nasdaq returned to a 0.9% gain in the stock market today. The small caps followed by the Russell 2000 climbed 3.2%. The volume was lower on the two main exchanges compared to the same time on Friday.
A recent resurgence in tech stocks pushed the tech-rich Nasdaq up 9% since Friday’s close, while the S&P 500 was down 7% and the Dow Jones down 12%. Small caps continue to lag, with the Russell 2000 index down 17%.
While the stock market is in an upward trend confirmed since the April 2 tracking day for the S&P 500, it has had hiccups as fears of a second increase in the Covid-19 wave. (Read The Big Picture for a detailed analysis of daily market action.)
Coronavirus cases worldwide are approaching 10.3 million, with more than 505,000 deaths, according to Worldometer. In the United States, confirmed cases now exceed 2.6 million, the death toll exceeding 128,000.
US Stock Market Today overview
|Index||symbol||Price||Loss of profit||% Change|
|S & P500||(0S and P5L)||3041.04||+31.99||+1.06|
Last update: 12:08 PM ET 06/29/2020
As the US economy reopens, several states are experiencing record levels of new Covid-19 cases and hospitalizations as the number of cases increases. Texas, one of the hardest hit states with new case peaks, announced Thursday that it will stop reopening.
Texas and Florida have since closed bars. On Sunday, California ordered seven counties, including Los Angeles, to close bars to curb the spread of the coronavirus.
Boeing takes off
Boeing (BA) climbed 10% in fast trading to lead the Dow Jones Index, after receiving clearance from the Federal Aviation Administration on Sunday to begin certification test flights on its 737 Max. The jet maker is scheduled to begin test flights today, as it will return to service soon. Boeing stocks are about 50% of their 52-week high.
Among the other top notch winners, caterpillar (CAT), Raytheon Technologies (RTX) and Dow Inc. (DOW) added more than 2% each.
But large-cap technologies were under pressure with Cisco (CSCO), Intel (INTC) and Microsoft (MSFT) down less than 1% each. But they made up for their losses in the middle of the day, with Microsoft returning to a gain of 0.5%.
This put Microsoft stocks out of the buying range from a 187.61 point of purchase of a cup with handle. The purchase area exceeds 197. The software giant is a stock IBD Leaderboard and IBD Long-Term Leaders.
Apple (AAPL) rose almost 2% as it headed for records. Stocks are down 3% from last week’s peak. The iPhone manufacturer’s stock is well-stocked from an additional point of purchase of a cup with handle. It also triggered the 20% to 25% profit-taking rule from a 288.35-cup entry with handle, according to analysis from the MarketSmith chart.
Software, Internet retail and film stocks led the decline among the 197 industry groups at IBD.
At the start of trade, FANG stocks Facebook (FB), Amazon (AMZN) and Netflix (NFLX) sold approximately 1% each. But Facebook rose slightly at midday, while Amazon and Netflix cut their losses or reversed.
Facebook boycott is growing
Facebook returned to 1.6% gain after plunging 8% on Friday Unilever (UN) has joined a growing number of companies that say they will stop advertising on Facebook and Instagram as the “Stop Hate for Profit” boycott is gaining momentum. During the weekend, PepsiCo (PEP) would have followed suit.
Facebook exceeded its 50-day moving average on Friday for the first time since mid-April. He started the round-trip rule after clearing a gain of almost 14% from the purchase point 215.38 of a cup with handle.
In biotechnology news, Gilead Sciences (GILD) rose more than 2% in above-average trade after announcing the price of its remdesivir to treat Covid-19. Gilead said it would cost $ 3,120 for a typical American patient with commercial insurance and that he would start billing for Covid-19 in July.
The title is trying to get back above its 50-day line, while a base with a buying point of 86.07 continues to take shape. In the afternoon trade, Gilead reduced its gain to 0.7%.
More in IBD 50, Palomar Holdings (PLMR), Kroger (KR) and Cabbage farmers market (SFM) increased by more than 4% each.
The Kroger supermarket chain is nearing a 34.60 point of purchase cup with handle. A composite rating of 89, which gives investors a quick way to assess the main growth characteristics of a stock, places Kroger third among 16 supermarkets; Sprouts takes first place.
But the Innovator IBD 50 ETF (FFTY) fell 0.2% Futu Holdings (FUTU), Box (BOX) and Video zoom (ZM) weighed.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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