Dow Cuts Loss On Deal Hopes; Biden Tests Negative – Investor's Business Daily

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The Dow Jones Industrial Average nearly recovered from a 434-point dive Friday afternoon on rising hopes for a stimulus deal.

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The Nasdaq shed 1.7%, the S&P 500 lost 0.4% and the Dow Jones industrials edged 0.1% higher in today’s trading. Small caps tracked by the Russell 2000 outpeformed, up 0.5%.

Volume was mixed, higher on the NYSE but lower on the Nasdaq vs. the same time Thursday. For the week, the Nasdaq was headed toward a 2.7% gain, the S&P 500 is up 1.7% and the Dow Jones index up 1.5%.

The stock market tumbled at the open after President Trump tested positive for Covid-19 on Thursday. Trump is reportedly experiencing “mild symptoms” as he and First Lady Melania Trump quarantine at home.

Late Thursday, Trump tweeted: “Tonight, @FLOTUS and I tested positive for COVID-19. We will begin our quarantine and recovery process immediately. We will get through this TOGETHER!”

Biden Tests Negative

Democratic presidential candidate Joe Biden and his wife, Jill, tested negative for the virus.

“I’m happy to report that Jill and I have tested negative for COVID. Thank you to everyone for your messages of concern. I hope this serves as a reminder: wear a mask, keep social distance, and wash your hands,” Biden tweeted.

Meantime, House Majority Leader Nancy Pelosi struck an optimistic tone about a new coronavirus stimulus deal. “We’ll find our middle ground. We’re legislators. We’ll get the job done,” she told MSNBC.

Friday morning, the Labor Department reported the U.S. economy added 661,000 jobs in September, well below forecasts for 894,000.

Covid-19 Update

The Nasdaq holds a 26% year-to-date gain despite recent volatility, while the S&P 500 was up 5% through Thursday’s close. The Dow is down 3% and the Russell 2000 is 8% underwater this year. Read The Big Picture for detailed market analysis.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 27847.74 +30.84 +0.11
S&P 500 (0S&P5) 3367.99 -12.81 -0.38
Nasdaq (0NDQC ) 11139.65 -186.86 -1.65
Russell 2000 (IWM) 153.06 +0.88 +0.58
IBD 50 (FFTY) 37.35 -0.45 -1.19
Last Update: 1:30 PM ET 10/2/2020

Worldwide coronavirus cases are approaching 34.6 million, with nearly 1.03 million deaths, according to Worldometer. In the U.S., confirmed cases have topped 7.5 million, with the death toll closing in on 213,000.

The Dow Jones index, which wrapped up September with a 2.3% loss, has climbed back above its 50-day moving average. On Wednesday, the IBD stock market outlook was upgraded to “confirmed uptrend” from “market in correction.”

Apple, Microsoft Test 50-Day Again

Amgen (AMGN) fell 3.4% on the Dow. The biotech giant continues to work on a flat base with a 265.07 buy point, according to MarketSmith chart analysis. Shares are about 6% below the entry.

Apple (AAPL) and Microsoft (MSFT) were down about 2.5% each.

Apple is testing its 50-day moving average after regaining the line on Monday. The iPhone maker’s stock remains sharply extended from a 72.15 buy point of a cup with handle, even as it consolidates for a few weeks now.

Microsoft, which reclaimed its 50-day on Thursday, slid back below the line Friday. It had been hitting resistance at the 50-day line since Sept. 8. Shares are 16% extended from a 180.10 buy point of a cup with handle cleared May 5. Microsoft is an IBD Leaderboard and IBD Long-Term Leader stock.

But Caterpillar (CAT) and Dow Inc. (DOW) rose more than 2% apiece. Caterpillar shares are back above a 150.65 buy point of a long consolidation. The stock is still in potential buy range from the entry.

Automakers, airlines and software stocks led the downside among IBD’s 197 industry groups. But solar, metal ores miners and home furnishing retailers advanced.

Tesla Reports Q3 Deliveries

Tesla (TSLA) skidded 6% in average turnover. The electric-car maker reported 139,200 vehicle deliveries in Q3. It produced 145,036 vehicles during the quarter. Tesla shares remain well above their 50-day line and are 14% off their 52-week high.

Biotechs weighed on the IBD 50 with Emergent BioSolutions (EBS), Alexion Pharmaceuticals (ALXN) and Vertex Pharmaceuticals (VRTX) down about 4% each.

Emergent and Vertex are both below their 50-day lines. Alexion is closest to a potential breakout. It’s about 8% away from a 120.91 buy point of a cup with handle.

The Innovator IBD 50 ETF (FFTY) fell 1.3%.

Follow Nancy Gondo on Twitter at @IBD_NGondo

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