The Dow Jones Industrial Average had risen nearly 300 points midday Friday, on track for a second straight week of big gains.
The Dow Jones industrials advanced 1%, the S&P 500 gained 0.9% and the Nasdaq added 0.6% in the stock market today. Small caps tracked by the Russell 2000 outperformed with a 1.5% jump. Volume was higher on both major exchanges vs. the same time Thursday.
For the week, the Dow Jones index is headed for a 3.5% gain, after last week’s almost 7% surge. The S&P 500 is eyeing a 1.5% advance and a new closing high. But the Nasdaq is looking at a 1.1% loss as techs and other stay-at-home stocks took a drubbing earlier in the week.
The Nasdaq has rallied 31% this year, while the S&P 500 is up 9% through Thursday’s close. The Dow is up 2% and the small-cap Russell 2000 is also up 2%. All four are back above their 10-week moving average. Read The Big Picture for detailed daily market analysis.
It’s been a volatile few weeks. 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: 12:00 PM ET 11/13/2020
Last Wednesday, after Election Day, the market outlook returned to “confirmed uptrend” as the major indexes staged big rallies. That gives the green light to buy leading stocks that are breaking out of solid bases.
Meantime, Covid-19 cases continue to rise globally. Worldwide coronavirus cases have topped 53.3 million, with more than 1.3 million deaths, according to Worldometer. In the U.S., confirmed cases since the beginning of the pandemic are approaching 10.9 million, with the death toll close to 249,000.
As the race toward a coronavirus vaccine or treatment heats up, Gilead Sciences (GILD) climbed 1.3%, despite comments from a top intensive care doctor about its coronavirus treatment Veklury (also known as remdesivir). Dr. Jozef Kesecioglu, president of the European Society of Intensive Care Medicine told Reuters that remdesivir should not be used routinely in critical care wards.
The Dow’s biggest gainer, Cisco Systems (CSCO), gapped up and soared nearly 7% in heavy volume. That sent the stock definitively above its 50-day moving average, where it had met resistance this week.
Late Thursday, the networking giant reported adjusted fiscal Q1 earnings and sales that fell from a year ago but topped views. Cisco’s guidance also came in above expectations.
Disney (DIS) added 1.4% in heavy trade after reporting better-than-expected fiscal Q4 results late Thursday. The theme parks and media giant also forecast lower coronavirus-related costs, while its Disney+ service continued to sign up more subscribers.
Shares leapt 4% early Friday, before paring gains. Disney stock is now back in potential buy range from a 131.46 buy point of a double-bottom base, according to MarketSmith chart analysis.
… And A Loser
But Apple (AAPL), down 0.9%, sat out the advance. The stock gave up 0.2% on Thursday. It’s holding above its 50-day line as it shapes a new base with a 138.08 buy point. Apple stock has rallied more than 60% this year.
Airlines, energy, banks and hospital stocks led the upside among IBD’s 197 industry groups. Software, automakers and internet retail stocks were among the few groups with minor declines.
Electric-Car Stocks On The Move
Tesla (TSLA) fell 1.4%, extending Thursday’s 1.3% loss. Shares have been hitting resistance at their 50-day line as they work on a cup with handle with a 466 buy point. Tesla is an IBD Leaderboard stock.
Tesla rival Li Auto (LI) surged as much as 28% to a record high before paring its gain to 6.5%. Shares are still about 60% extended from a 21.96 buy point of a cup with handle cleared Nov. 2.
The China-based electric-car maker reported mixed Q3 results in its first earnings report following its recent U.S. IPO. The company forecast Q4 deliveries between 11,000 and 12,000 vehicles, which would mark a 27%-38.6% increase from Q3.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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