Dow Jones endorses news of Pfizer coronavirus vaccine; Tesla passes new point of purchase

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The Dow Jones Industrial Average gained 125 points after Pfizer provided new updates on the coronavirus vaccine early Wednesday. Boeing has soared with the approval of the 737 Max jet FAA. Tech giant Tesla has passed a buy point following an upgrade from its analyst, while Chinese rival Nio has plunged following its earnings report.



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Among the leaders of the Dow Jones, Apple (AAPL) fell 0.65%, while Microsoft (MSFT) lost 0.6% in the current stock market.Action Dow Jones Boeing (BA) rebounded 4% before slashing earnings after the Boeing 737 Max received FAA approval to resume service.

Tesla (TSLA) jumped 9% on an analyst upgrade, as a new buy point approached. Chinese rival Nio (NIO) plunged 8% despite strong results.

Stocks in or near buy zones in the stock rally are Mexican Grill Chipotle (CMC) and Facebook (FB).

Chipotle, Microsoft and Tesla are both IBD stocks.

Dow Jones Today: Pfizer Coronavirus Vaccine

Early Wednesday, the Dow Jones Industrial Average rose 0.2%, while the S&P 500 was up 0.2%. The highly technological Nasdaq composite gained 0.3% in midday trading.

Wednesday morning, Pfizer (PFE) and BioNTech (BNTX) said a final analysis of the data found their coronavirus vaccine to be 95% effective in preventing Covid-19. The drug makers said the vaccine candidate was very effective against the virus 28 days after the first dose and that its effectiveness was consistent across ages, races and ethnicities.

The researchers found no serious security issues, the companies said.

Last week, the two companies said their coronavirus vaccine candidate was around 90% effective, according to preliminary data.

Pfizer stock was up 3% in morning trading, while BioNTech stock was up 3%.

Among exchange-traded funds, the Innovator IBD 50 (FFTY) lost 0.5% on Wednesday. The Invesco QQQ Trust ETF (QQQ) linked to the Nasdaq 100 was down 0.4%. Meanwhile, the SPDR S&P 500 ETF (SPY) gained less than 0.1%.

Snapshot of the US Stock Market Today

Index symbol Price Loss of profit % Change
Dow Jones (0DJIA) 29853,46 +70,11 +0,24
S&P 500 (0S and P5) 3613,48 +3,95 +0,11
Nasdaq (0NDQC) 11887,67 -11,67 -0,10
Russell 2000 (Etc.) 178,67 +0,21 +0,12
IBD 50 (FFTY) 37,79 -0,16 -0,42
Last updated: 10:26 ET 18/11/2020

Amid the coronavirus stock rally, the high-tech Nasdaq rose 32.6% for the year through Tuesday’s close. Meanwhile, the S&P 500 is up 11.7%, while the Dow Jones is up 4.3% year-to-date, through to the close on November 17.

Coronavirus Updates

According to Worldometer’s data tracking, the cumulative number of confirmed coronavirus cases in the United States exceeded 11.6 million on Wednesday. The total number of deaths linked to the virus has exceeded 254,000.

The cumulative total of Covid-19 cases worldwide confirmed since the start of the epidemic exceeded 56 million on Wednesday, with more than 1.34 million deaths linked to the virus.

Coronavirus stock rally

According to IBD’s The Big Picture, the stock market is back in a new uptrend after a day of bullish tracking on November 4.

Tuesday’s Big Picture commented, “Stocks are reflecting mixed action today which is pretty typical for a bull market that is also showing some rotation. ”

Investors should use the strength of the stock market as a green light to buy further breakouts. Start slowly with new purchases and see how they work. After raising some cash in the recent correction, don’t rush to get fully invested all at once. Try new purchases. If they work, you can add to them; otherwise, you can go back.

In particular, focus on actions with strong relative strength. Find them using the line of relative force. The RS line measures the price performance of a stock relative to the S&P 500. If the stock outperforms the broader market, the RS line is oriented upward. If a stock is performing worse than the overall market, the line will point lower.

Stocks to watch include the long-term leaders of IBD, companies with stable earnings growth and price performance.


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Dow Jones News: Boeing s’envole

Dow Jones Boeing stock rose 3.3% after the Boeing 737 Max, grounded in March 2019, received Federal Aviation Administration approval to enter service on Wednesday.

Shares of the aircraft maker remain around 40% above their 52-week high.

Actions in or near shopping areas: Chipotle, Facebook

FANG stock market leader Facebook plots a cup with a handle with a buy point of 297.48, according to MarketSmith chart analysis. Shares are about 7% off the new entry amid Wednesday’s 0.3% drop.

According to the IBD Stock Checkup, the Facebook stock has a 98 out of a perfect IBD composite rating of 99. The composite rating – an easy way to identify major growth stocks – is a mix of key fundamental and technical metrics to help investors assess the strengths of a stock.

Burrito maker Chipotle is approaching a buy point of 1,366.76 in a double bottom. Stocks are around 7% of new entry as they struggle to move back above their key 50 day line. The stock was down 0.4% early Wednesday.

Both stocks are featured in the Stocks Near A Buy Zone column for this week.


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Gains Nio

Chinese electric car maker Nio fell 8%, despite exceeding third-quarter estimates and strong forecasts on Tuesday night. The company reported a loss of 12 cents per share on revenue of $ 666.6 million. The vehicle margin increased to 14.5% from -6.8% a year ago and 9.7% in the second quarter. Free cash flow more than doubled from Q2 to $ 3.3 billion in Q3.

Wall Street expected the electric SUV maker to lose 15 cents a share on revenue of $ 628 million.

Tesla Stock bursts

IBD Leaderboard Tesla stock rose 9% on Wednesday morning after Morgan Stanley moved the stock from equal weight to overweight, while raising the price target from 360 to 540. Shares pass one purchase point of 466.

On Tuesday, Tesla stock jumped more than 8% on Tuesday on the announcement that it would be added to the S&P 500 Index on December 21.

According to the IBD ranking commentary, “The midpoint of the handle of 422.50 is slightly higher than the midpoint of the cup (416.19) itself. It’s good. A risk that should not be ignored: the new base is behind schedule, following the progress of the cup with grip bases and a high and tight flag that also counted as a base. So the latest model has a higher risk. ”

Tesla was the IBD title of the day Tuesday.

Dow Jones Executives: Apple, Microsoft

Among the major stocks in the Dow Jones, Apple was down 0.65% on Tuesday, as stocks struggled to continue to rebound from their 50-day line. Apple stock is setting a new base with a buy point of 138.08. An early entry exists at 125.49.

The blue chip giant is the No.1 Dow Jones stock for 2020, with a 62.6% lead through Tuesday. Salesforce.com (CRM) is number 2 with an increase of 57.5% since the start of the year.

Software giant Microsoft fell 0.6% on Tuesday, seeking to add to Wednesday’s 1.3% loss. Stocks are above their 50-day threshold as they are trading at around 7% of their all-time high.

Since the start of the year, Microsoft has been one of the main stocks in the Dow Jones, rising 36% until the close on November 17.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and the Dow Jones Industrial Average.

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