The Dow Jones Industrial Average pared losses after an early 425-point dive that followed news of President Donald Trump testing positive for the coronavirus, compounded by a lackluster jobs report. Apple dropped as much as 3%, while Tesla skidded nearly 7% on vehicle deliveries. Twilio soared more than 12% on strong Q3 sales guidance.
Microsoft, ServiceNow and Tesla are all IBD Leaderboard stocks.
Dow Jones Today: Trump Positive For Coronavirus
The Dow Jones Industrial Average whittled its early decline to 0.6%, alongside the S&P 500’s 0.6% loss. The Nasdaq composite trimmed its decline to 0.8% in morning trade.
NBC News, citing a White House official, reported that President Trump is experiencing “mild symptoms.”
Vice President Mike Pence and his wife tested negative, according to the White House.
Among exchange traded funds, Innovator IBD 50 (FFTY) traded down 1.25% Friday, set to snap a six-day win streak. The Nasdaq 100-linked Invesco QQQ Trust (QQQ) ETF fell 1.1%. Meanwhile, the SPDR S&P 500 ETF (SPY) lost 0.6%.
Amid the coronavirus stock market rally, the tech-heavy Nasdaq is up 26.2% for the year through Thursday’s close. Meanwhile, the S&P 500 is up 4.6%, while the Dow is down 2.5% year to date, through the Oct. 1 close.
September Jobs Report
The Labor Department reported nonfarm payrolls grew by 661,000 in September, much weaker than the expected 894,000 increase.
The unemployment rate fell to 7.9%, down from 8.4% for August and better than the 8.2% estimate.
According to the Worldometer data tracker, the cumulative number of confirmed coronavirus cases in the U.S. topped 7.49 million on Friday. Total virus-related deaths topped 212,000.
The cumulative total of Covid-19 cases confirmed since the start of the outbreak worldwide topped 34.5 million Friday, with more than 1.02 million virus-related deaths.
Coronavirus Stock Market Trend
According to IBD’s The Big Picture, the coronavirus stock market rally is trying to shrug off the recent institutional selling, as the major stock indexes regain key levels.
Thursday’s Big Picture reported that, “The Nasdaq showed more positive action Thursday, but lower volume removed some of the power from the trading session. Had the volume been higher than Wednesday, the Nasdaq would have staged a follow-through day of its own, giving investors more confidence in the nascent uptrend.”
After the bullish signal, investors are cleared to start buying new breakout stocks. The best candidates are those that held up the best during the recent stock market weakness. Keep a close eye on stocks with strong relative strength lines. These stock ideas could become stock market leaders.
Use MarketSmith features like the RS Line Blue Dot to easily spot such stock candidates. The RS Line Blue Dot is assigned to stocks whose RS lines are making new highs while the stock is basing or breaking out.
Stocks to watch include IBD Long-Term Leaders, companies with stable earnings growth and price performance.
Dow Jones News: Apple Stock
Among the Dow Jones stocks, Apple fell 2.5% Friday, on pace to snap a two-day win streak. Apple shares decisively reclaimed their 50-day line on Monday, but are testing that key level in morning trade.
Apple stock is about 61% above a 72.15 buy point in a cup-with-handle base. The blue-chip giant is the No. 1-performing Dow Jones stock for 2020, with a 59.1% advance through Thursday’s close. Recent Dow Jones 30 addition Salesforce.com (CRM) is the No. 2 performer with a 55.8% year-to-date advance.
Stocks On The Move: Twilio
Twilio soared as much as 12% after the company announced that its Q3 revenue will be ahead of previously-issued guidance of $401 to $406 million.
The gain lifted shares into a buy range above a 283.44 buy point in a double-bottom base, according to MarketSmith chart analysis.
Tesla stock tumbled nearly 7% before cutting losses after reporting deliveries of 139,200 for the third quarter, including 124,100 Model 3 and Model Y electric vehicles. The company said it produced 145,036 vehicles in the quarter.
Despite Friday’s fall, Tesla shares remain squarely above their 50-day moving average line. The stock is about 15% off its 52-week high.
Stocks Near Buy Zones: Netflix, ServiceNow, Veeva
FANG stock Netflix is approaching a 557.49 buy point in a double bottom, following Thursday’s 5.5% advance. Shares dipped 1.4% early Friday.
According to the IBD Stock Checkup, NFLX stock shows a 98 out of a best-possible 99 IBD Composite Rating. The Composite Rating — an easy way to identify top growth stocks — is a blend of key fundamental and technical metrics to help investors gauge a stock’s strengths.
Software leaders ServiceNow and Veeva Systems are on the verge of completing new bases in the new stock market rally, according to MarketSmith chart analysis.
Both have strong RS lines, indicating significant strength during the recent stock market correction. They also have best-possible 99 IBD Composite Ratings.
IBD 50 member ServiceNow is about to finish a flat base with a 501.92 buy point. Shares rose 1% in morning trade.
Veeva Systems would have a 298.86 buy point. An early entry at 287.28 is also in play. Veeva dropped 0.8% early Friday.
Veeva ranks No. 16 on the IBD Big Cap 20.
Dow Jones Leaders: Microsoft
Among the top Dow Jones stocks, software leader Microsoft slid 1.5% Friday, as the stock continues to find resistance around its 50-day line.
On Sept. 8, shares closed below their 50-day support level for the first time since the May 5 breakout above a cup-with-handle’s 180.10 buy point.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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