Stocks were mixed Thursday afternoon, as the Dow Jones Industrial Average reversed to a loss and the S&P 500 hovered near the flat line.
The Nasdaq held a 0.9% gain, the S&P 500 was flat and the Dow Jones industrials slipped 0.4% in the stock market today. The Dow had rallied as much as 260 points early. Small caps tracked by the Russell 2000 were up 0.6%. Volume was higher on both major exchanges vs. the same time Wednesday.
The Labor Department reported jobless claims of 837,000 for the week ended Sept. 26. That was below Econoday forecasts for 850,000 and an upwardly revised 873,000 the prior week.
Market Outlook Shifts
The Nasdaq holds a 24% year-to-date gain despite recent volatility, while the S&P 500 was up 4% through Wednesday’s close. The Dow is down 3% and the Russell 2000 is 10% underwater this year. Read The Big Picture for detailed market analysis.
Worldwide coronavirus cases have topped 34.2 million, with more than 1.02 million deaths, according to Worldometer. In the U.S., confirmed cases are approaching 7.5 million, with the death toll closing in on 212,000.
U.S. Stock Market Today Overview
Last Update: 2:22 PM ET 10/1/2020
The Dow Jones index, which closed out 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.”
Boeing, now up 0.5%, is trying to retake its 50-day moving average, where it’s hit resistance since late July. The jet maker said Thursday that 787 Dreamliner production will be consolidated at its South Carolina plant.
On Wednesday, Federal Aviation Administration Chief Steve Dickson made positive comments about the 737 Max after a test flight. But he isn’t yet ready to approve the jet for commercial service.
Microsoft Retakes Support Line
Microsoft reclaimed its 50-day line, where it had run into resistance for much of the past month. It’s extended from a 180.10 buy point of a cup-with-handle cleared in May, despite that it has given back gains. The software giant is an IBD Leaderboard and IBD Long-Term Leader stock.
Outside the Dow, SailPoint Technologies (SAIL) gapped up and soared 13% to a record high in heavy trade. It’s extended from a 41.39 buy point in a short consolidation base, as well as from a rebound off the 10-week line.
Automakers, shoe and apparel makers, and internet retail stocks led the upside among IBD’s 197 industry groups. But oil and gas, and medical stocks lagged.
Tesla (TSLA) rose 4% to extend a rebound off its 50-day line. The stock is extended from that level. The electric-car maker confirmed new price cuts of 8%-10% for its Model 3 electric cars made in China. Tesla is expected to report Q3 vehicle deliveries soon.
Deckers Breaks Out
Deckers Outdoor (DECK), up 6% in fast trade, was the biggest winner in the shoe and apparel group. Shares broke out past a 223.34 buy point of a cup-with-handle and remain near the top of the 5% buy zone, which goes up to 234.51. The base is first stage, which means the stock could have more room to run. Deckers’ brands include Ugg and Teva.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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