Stocks were higher just after midday Wednesday ahead of the Federal Reserve’s policy decision at 2 p.m. ET. The Dow Jones Industrial Average rallied more than 200 points.
The Dow Jones industrials rose 0.8%, the S&P 500 climbed 0.5%, and the Nasdaq was roughly flat in the stock market today. Small caps tracked by the Russell 2000, up 1.4%, outperformed. Volume was lower on both major exchanges vs. the same time Tuesday.
The Fed, which wraps up its two-day monetary policy meeting today, will release its statement at 2 p.m. ET.
Wall Street had reached new highs following the coronavirus crash. But the market uptrend fell under pressure Sept. 8, as the major indexes suffered sharp declines.
The Nasdaq holds a 25% year-to-date gain despite recent volatility, while the S&P 500 was up 5% through Tuesday’s close. The Dow is down 2% and the Russell 2000 is now 8% underwater this year. Read The Big Picture for detailed market analysis.
Worldwide coronavirus cases have topped 29.8 million, with more than 940,000 deaths, according to Worldometer. In the U.S., confirmed cases are approaching 6.8 million, with the death toll over 200,400.
U.S. Stock Market Today Overview
Last Update: 11:56 AM ET 9/16/2020
As the race for a Covid-19 treatment or vaccine heats up, Eli Lilly (LLY) rose nearly 2% in above-average volume. The drug giant said data from its Blaze-1 clinical trial showed lower hospitalization rates for coronavirus patients treated with its LY-CoV555 neutralizing antibody drug.
Eli Lilly stock is working on a flat base with a 170.85 potential buy point, according to MarketSmith chart analysis. But LLY stock is about 11% away from the entry, stuck below its 50-day moving average.
Walgreens Boots Alliance (WBA) and Goldman Sachs (GS) led the Dow Jones index with gains of more than 2% each. Walgreens is still over 40% below its 52-week high. Goldman stock is building a flat base with a 225.34 buy point.
Apple Leads Dow Losers
Apple (AAPL) fell 1.2% but remains above its 50-day moving average. The iPhone maker on Tuesday unveiled its Apple Watch Series 6 smartwatches at its virtual product launch. Shares closed 0.2% higher that day.
The Leaderboard stock is about 60% extended from a 72.15 buy point of a cup with handle. It could set up a new chance to add a smaller number of shares on a solid rebound off the 50-day (or 10-week) line. But keep in mind the market uptrend is under pressure, which raises the risk of all purchases.
Energy, airline and homebuilder stocks led the upside among IBD’s 197 industry groups, while software and truck-related stocks lagged.
The Innovator IBD 50 ETF (FFTY) edged 0.1% lower as software leaders Adobe (ADBE) and ServiceNow (NOW) fell about 2% each. Nvidia (NVDA), Rocket Cos. (RKT) and Horizon Therapeutics (HZNP) also weighed.
Adobe reversed lower from an early gain to pull back into buy range from a 470.71 flat-base entry. The buy zone goes up to 494.25. Late Tuesday, the Leaderboard stock reported fiscal Q3 results that topped views.
But enterprise software maker Digital Turbine (APPS) soared 9% in fast trade to a new high. D.R. Horton (DHI), Virtu Financial (VIRT) and Essential Properties Realty Trust (EPRT) added more than 2% each.
Snowflake On Tap
In IPO news, cloud-based data warehousing company Snowflake (SNOW) is set to start trading today. Late Tuesday, it priced its 28 million share offering at $120 a share, for a $33 billion valuation. Snowflake is backed by Warren Buffett’s Berkshire Hathaway (BRKB), which is investing $570 million in the offering.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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