The Dow Jones Industrial Average briefly rallied more than 150 points Thursday, as IBM soared 9% on spinoff news. Dow Jones stock Apple advanced 1%, also briefly, while tech leaders Roku and Tesla surged on analyst actions. Domino’s dived as much as 8% after a disappointing earnings report.
Dow Jones leaders Apple (AAPL) and Microsoft (MSFT) were mixed in today’s stock market. International Business Machines (IBM) soared as much as 9% on spinoff news and was the top performer on the Dow 30.
Stocks on the move early Thursday include Beyond Meat (BYND), Domino’s Pizza (DPZ), Regeneron Pharmaceuticals (REGN) and Roku (ROKU). Beyond Meat jumped another 4%. Domino’s slid 8% on weak earnings results. Regeneron advanced 2% on coronavirus news, while Roku surged almost 7% to hit another all-time high.
Meanwhile, Tesla (TSLA) advanced 3% before trimming gains after New Street upgraded the stock from neutral to buy.
Alibaba, Beyond Meat, Microsoft, Tesla are all IBD Leaderboard stocks.
Dow Jones Today
The Dow Jones Industrial Average moved up 0.4% in morning trade Thursday. The S&P 500 rallied 0.7%, while the Nasdaq composite gained 0.6%.
U.S. Stock Market Today Overview
Last Update: 10:38 AM ET 10/8/2020
Amid the coronavirus stock market rally, the tech-heavy Nasdaq is up 26.7% for the year through Wednesday’s close. Meanwhile, the S&P 500 is up 5.8%, while the Dow is down 0.8% year to date, through the Oct. 7 close.
According to the Worldometer data tracker, the cumulative number of confirmed coronavirus cases in the U.S. topped 7.77 million on Thursday. Total virus-related deaths topped 216,000.
The cumulative total of Covid-19 cases confirmed since the start of the outbreak worldwide topped 36.4 million Thursday, with more than 1.06 million virus-related deaths.
Coronavirus Stock Market Rally
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.
Wednesday’s Big Picture reported that, “The Nasdaq claimed a 1% gain or more for the sixth time since Sept. 22. If volume jumped Wednesday vs. the prior session, then no doubt the day could have qualified as a follow-through day.”
After the Dow’s recent 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: IBM Stock
Among the Dow Jones stocks, IBM soared as much as 9% after the company said it would spin off the managed infrastructure services unit of its global technology services division into a separate public company.
Shares are rapidly approaching a 135.98 buy point in a cup with handle.
Regeneron Jumps On Coronavirus News
Regeneron Pharmaceuticals jumped nearly 4% before cutting gains after submitting an “emergency use authorization” request to the U.S. Food and Drug Administration for its coronavirus antibody treatment. The treatment is what President Donald Trump received last week.
Regeneron stock is moving up the right side of a new base. For now, the new buy point is 664.74, but be on the lookout for a potential handle to offer a more risk-optimal entry.
Stocks On The Move: Beyond Meat, Roku
Beyond Meat jumped another 4% early Thursday, following up on Wednesday’s 4% advance. BYND stock is on pace to extend a win streak to four sessions.
Beyond Meat is more than 15% beyond the 167.26 entry in a cup base, following a breakout on Sept. 29.
Roku stock rallied nearly 7% after Needham and Deutsche Bank raised their price targets. Needham upped the target from 190 to 255, while Deutsche Bank raised it from 185 to 235.
Shares hit an all-time high amid a potential four-day win streak.
Stock Market Earnings: Domino’s
Domino’s Pizza reported that earnings rose 21.5% to $2.49 a share, missing consensus estimates for $2.75. Revenue grew nearly 18% to $967.72 million, topping the $945.59 million consensus.
Domino’s stock stumbled more than 8% before paring losses to fall sharply below its 424.82 buy point in a flat base. Shares are still holding above their 50-day line.
Tesla stock raced 3% higher in morning trade Thursday after New Street upgraded the stock from neutral to buy with a price target of 578.
Shares looked to add to Wednesday’s 2.7% gain and are about 13% off their 52-week high.
Stocks Near Buy Zones: Alibaba, Fastly
Alibaba is trying to break out past a 299.10 buy point in a flat base. Shares gained 1.3% in morning trade Thursday and is in buy range.
The stock’s RS line hit a new high in recent sessions, a sign of bullish stock market outperformance.
According to the IBD Stock Checkup, BABA stock boasts 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.
Wednesday’s IBD Stock Of The Day, Fastly, fell out of the 5% buy zone past a 117.89 buy point in a consolidation base. The buy zone tops out at 123.78.
Shares declined almost 4% Thursday morning.
Dow Jones Leaders: Apple, Microsoft
Among the top Dow Jones stocks, Apple rose 1% before trimming gains Thursday, adding to Wednesday’s 1.7% advance. Shares are again trying to retake their key 50-day support level, according to MarketSmith chart analysis.
Apple stock is about 60% above a 72.15 buy point in a cup-with-handle base. The blue-chip giant is the No. 2-performing Dow Jones stock for 2020, with a 56.8% advance through Wednesday’s close. Recent Dow Jones 30 addition Salesforce.com (CRM) is the No. 1 performer with a 59.9% year-to-date advance.
Software leader Microsoft moved down 0.1% Thursday, as the stock continues the battle to retake 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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