The Dow Jones Industrial Average jumped over 250 points on new coronavirus stimulus hopes Thursday before cutting gains, as the stock market rally continues. Dow Jones leader Apple rallied as much as 1.5%, while Tesla advanced 3%. Amazon jumped 2% on a price-target hike.
Dow Jones leaders Apple (AAPL) and Microsoft (MSFT) rallied 0.5% and 1%, respectively, in today’s stock market. Boeing (BA) jumped 4% after the FAA chief made positive comments regarding changes to the 737 Max jet.
Alibaba, Beyond Meat, Microsoft, SailPoint and Tesla are all IBD Leaderboard stocks.
Dow Jones Today: Coronavirus Stimulus Hopes
The Dow Jones Industrial Average shed early gains and dipped into narrow losses, while the S&P 500 pared its rally to 0.2%. The Nasdaq composite climbed 0.7% in morning trade.
According to Roll Call, Treasury Secretary Steven Mnuchin offered a $1.6 trillion coronavirus stimulus package to House Democrats on Wednesday afternoon. The discussion ended without a deal, but Mnuchin and Speaker Nancy Pelosi agreed to continue negotiations Thursday.
The House delayed a vote on its $2.2 trillion plan, giving Mnuchin and Pelosi more time to hash out an agreement. Meanwhile, President Donald Trump offered to endorse a coronavirus stimulus deal of more than $1.5 trillion, the White House chief of staff told reporters.
Thursday morning, the Labor Department reported jobless claims of 837,000, beating Econoday consensus estimates for claims of 850,000.
Among exchange traded funds, Innovator IBD 50 (FFTY) traded up 0.5% Thursday morning, working on a sixth straight advance. The Nasdaq 100-linked Invesco QQQ Trust (QQQ) ETF rose 9%. Meanwhile, the SPDR S&P 500 ETF (SPY) jumped 0.2%.
Amid the coronavirus stock market rally, the tech-heavy Nasdaq is up 24.5% for the year through Wednesday’s close. Meanwhile, the S&P 500 is up 4.1%, while the Dow is down 2.7% year to date, through the Sept. 30 close.
According to the Worldometer data tracker, the cumulative number of confirmed coronavirus cases in the U.S. topped 7.45 million on Thursday. Total virus-related deaths topped 211,000.
The cumulative total of Covid-19 cases confirmed since the start of the outbreak worldwide topped 34.2 million Thursday, with more than 1.01 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.
Wednesday’s Big Picture reported that, “It’s best to see follow-through days convey strength and power, not begrudging and on the fence. Wednesday’s session had the feel of the latter. Nonetheless, the stock market is back in a confirmed 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: Boeing Stock
Among the Dow Jones stocks, Boeing rallied 4% after Federal Aviation Administration chief Steve Dickson gave positive reviews of fixes for the 737 Max jet after a test flight. But the FAA chief is still not ready to approve the revamped jet for commercial passenger service.
Shares are trying to regain their 50-day moving average line, and are about 55% off their 52-week high.
Stocks To Watch: Alibaba, Amazon, Tesla
Tuesday’s IBD 50 Stocks To Watch pick, Chinese retail leader Alibaba continues its rebound from a critical support level in the current stock market rally. Shares slipped 1% early Thursday.
Alibaba is an IBD Leaderboard member. According to Leaderboard commentary, “Support near the 10-week line is now in full force. The stock may also form a base, if it doesn’t make new highs this week.”
According to the IBD Stock Checkup, BABA stock shows 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.
Amazon stock rallied 1.5% early Thursday after Pivotal Research upped its price target from 3,925 to 4,500.
Shares are trying to regain their 50-day line after finding resistance there on Wednesday.
Tesla jumped 3% before trimming gains after the company confirmed new price cuts of 8%-10% for its made-in-China Model 3 electric cars. Shares continue to rebound from their 50-day support level.
Tesla is expected to report third-quarter vehicle deliveries sometime during the first few days of October. Analysts polled by FactSet look for Tesla to deliver 144,000 vehicles during the quarter, a 59% jump from the prior quarter.
Last week, CEO Elon Musk sent out an email to employees saying, “We have a shot at a record quarter for vehicle deliveries, but will have to rally hard to achieve it.”
Stocks In Buy Zones: Beyond Meat, Datadog, SailPoint
IPO stock Beyond Meat continues to try to break out above a cup base’s 167.26 buy point. Shares rallied 2% Thursday to again retake the entry.
Software leader Datadog broke out above a 99.09 buy point Wednesday on the company’s partnership with Microsoft. Shares rallied another 1.5% early Thursday and are at the top of the buy range. The buy zone tops out at 104.04.
Wednesday’s IBD Stock Of The Day, SailPoint, is extended past the 5% buy zone above a 41.39 buy point in a short consolidation base, according to a MarketSmith chart analysis. The 5% buy zone goes up to 43.46. Shares soared 15% early Thursday on news that the company will join the S&P MidCap 400.
Bullishly, SailPoint’s RS line is at new highs, indicating that shares are sharply outperforming the S&P 500 during the recent span of weakness.
Dow Jones Leaders: Apple, Microsoft
Apple stock is about 60% 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 57.8% advance through Wednesday’s close. Recent Dow Jones 30 addition Salesforce.com (CRM) is the No. 2 performer with a 54.5% year-to-date advance.
Software leader Microsoft rose 1% Thursday, as the stock continues its attempt to regain 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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