The Dow Jones Industrial Average surged to session highs late Wednesday, after President Trump’s latest tweet boosted the stock market.
The Dow Jones industrials soared 2.1%, the Nasdaq rallied nearly 2% and the S&P 500 rose 2% in the stock market today. Small caps tracked by the Russell 2000 were up 2%. Volume, though, was lighter on both major exchanges vs. the same time Tuesday.
Trump sowed confusion with a late Tuesday tweet: “If I am sent a Stand Alone Bill for Stimulus Checks ($1,200), they will go out to our great people IMMEDIATELY. I am ready to sign right now. Are you listening Nancy?”
Midday Tuesday, stocks had reversed to close sharply lower after he tweeted a halt to stimulus talks until after the election.
The Nasdaq holds a 24% year-to-date gain despite recent volatility, while the S&P 500 was up 4% through Tuesday’s close. The Dow is down 3% and the Russell 2000 is 5% underwater this year. Read The Big Picture for detailed market analysis.
The Dow Jones index, which wrapped up September with a 2.3% loss, has climbed back above its 50-day moving average. On Sept. 30, the IBD stock market outlook was upgraded to “confirmed uptrend” from “market in correction.”
Worldwide coronavirus cases have topped 36.1 million, with nearly 1.06 million deaths, according to Worldometer. In the U.S., confirmed cases are now above 7.7 million, with the death toll closing in on 216,000.
As the race for a coronavirus treatment or vaccine heats up, Eli Lilly (LLY) rose nearly 3% in heavy volume to retake its 200-day moving average. The drug giant released positive interim clinical trial data for its LY-CoV555 Covid-19 treatment. Eli Lilly also said it submitted an initial request to the FDA for emergency use authorization.
Boeing Lifts The Dow
Boeing (BA) was one of the Dow Jones’ biggest winners with a 3.4% gain in fast trade, recouping part of Tuesday’s 7% drop. Trump signaled support to aid the aviation industry Tuesday night, tweeting the House and Senate should pass another $25 billion for airlines and $135 billion for the Paycheck Protection Program.
Boeing shares have run into resistance at the 50-day line since late July and are still more than 50% off a 52-week high.
Among other blue chip winners, 3M (MMM), Intel (INTC) and UnitedHealth (UNH) gained about 3% each. Caterpillar stock remains in potential buy range from a 150.65 entry, according to MarketSmith chart analysis.
Salesforce.com (CRM) led the Dow with a 4% jump. Salesforce.com may be shaping a new cup base with a 284.60 buy point. The enterprise software maker and recent Dow entrant is an IBD Long-Term Leader stock. It also joined SwingTrader on Sept. 30.
Apple (AAPL) added 1.9% to retake its 50-day line and recover some of Tuesday’s 2.9% loss. On Tuesday, Apple set an Oct. 13 date for its virtual product launch event, where it’s widely expected to unveil the iPhone 12. Shares are sharply extended from a 72.15 buy point of a cup with handle cleared in May.
Netflix Gets Analyst Boost
Outside the Dow, Netflix (NFLX) rallied 6% in twice normal trade. Pivotal Research Group reiterated a buy rating on the movie streamer and raised its price target to 650 from 600. It said Netflix is likely to remain the dominant player in the subscription video-on-demand market.
Shares are getting close to a 557.49 buy point of a double-bottom base, which is within a longer consolidation with a 575.47 secondary entry.
Banks, solar and movie-related stocks led the upside among IBD’s 197 industry groups. The few losers included oil and gas, and gaming stocks.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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