Key market indexes extended their gains midday Tuesday, with the Dow Jones Industrial Average roaring 600 points higher on Election Day.
The Dow Jones industrials rallied 2.5%, the S&P 500 rose 2.3% and the Nasdaq gained 2.2% in the stock market today. Small caps tracked by the Russell 2000 also rose 2.2%. Volume was slightly higher on both major exchanges vs. the same time Monday.
The final IBD/TIPP Trump vs. Biden poll shows former Vice President Joe Biden leading the national popular vote on Election Day. But the poll also hints the race may be close enough to keep President Donald Trump’s Electoral College chances.
Amid recent volatility, the Nasdaq’s year-to-date gain has been cut to 22%, while the S&P 500 was up 2% through Monday’s close. The Dow is down 6% and the Russell 2000 is now 6% underwater this year. Read The Big Picture for detailed daily market analysis.
The Dow Jones index, which wrapped up September with a 2.3% loss, has fallen below its 50-day moving average. On Sept. 30, the IBD stock market outlook was upgraded to “confirmed uptrend” from “market in correction.” But on Oct. 23, the outlook was downgraded to “uptrend under pressure” as stocks sold off.
U.S. Stock Market Today Overview
Last Update: 11:56 AM ET 11/3/2020
Worldwide coronavirus cases have topped 47.5 million, with more than 1.2 million deaths, according to Worldometer. In the U.S., confirmed cases are approaching 9.6 million, with the death toll over 237,000.
Bank Stocks Lead Dow Jones
Walgreens Boots Alliance (WBA), JPMorgan Chase (JPM) and Goldman Sachs (GS) led the Dow with gains of about 4% each. A 3.3 basis-point increase in the 10-year Treasury yield to 0.9% boosted the bank stocks. JPMorgan and Goldman remain more than 20% off their 52-week highs.
Automakers, banks and computer networking stocks led the upside among IBD’s 197 industry groups. Agricultural chemical makers and homebuilders were among the few losers.
Good Day For Automakers
China rivals also advanced. Nio (NIO) rose 4%, Li Auto (LI) gained 3% and Xpeng (XPEV) was up 2%. The trio added to their gains from Monday, when they reported robust October sales. Li Auto stock is now extended from a 21.96 buy point of a cup with handle it cleared on Monday.
Among other automakers, Ferrari (RACE) surged 8% in fast turnover to gap above its 50-day line. The Italian sports car maker reported Q3 results that beat views on both the top and bottom lines. Shares are about 1% away from a 200.07 buy point of a flat base, according to MarketSmith chart analysis.
On the downside, SolarEdge Technologies (SEDG) plunged 24% in massive trade after reporting mixed Q3 results. Earnings beat views, but sales were weaker than expected. The stock gapped down below its 50-day line for the first time since late September.
Alibaba Takes A Hit
But Alibaba (BABA) gapped down and slumped 6% in heavy trade after the Shanghai stock exchange suspended Ant Group Co.’s $35 billion IPO listing due to regulatory issues. Alibaba owns about a third of the payments company, which was expected to debut in Hong Kong and Shanghai on Nov. 5.
The drop sent the Leaderboard stock to its 50-day line, which it hasn’t tested since late September. Alibaba also fell below 299.10 buy point of its recent base, but the decline from the entry isn’t big enough to trigger the 7%-8% loss-cutting sell rule.
The Innovator IBD 50 ETF (FFTY) advanced 1.7% as it continues to trade below a 40.05 buy point of a flat base.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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