Dow Jones Trims Losses As Disney Rallies; Coronavirus Stocks In Focus – Investor's Business Daily

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Key market indexes were mixed early Tuesday, as the Dow Jones Industrial Average fell 120 points before paring its losses.

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The S&P 500 fell 0.4%, the Dow Jones industrials gave up 0.3% and the Nasdaq reversed 0.2% higher in today’s trading. Small caps tracked by the Russell 2000 lost 1%. Volume was higher on both major exchanges vs. the same time Monday.

The Nasdaq holds a 32% year-to-date gain despite recent volatility, while the S&P 500 was up 9% through Monday’s close. The Dow is up 1% and the Russell 2000 is now just 1% 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 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.”

Covid-19 Update

Worldwide coronavirus cases have topped 38.1 million, with nearly 1.09 million deaths, according to Worldometer. In the U.S., confirmed cases are approaching 8.04 million, with the death toll over 220,000.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 28762.53 -74.99 -0.26
S&P 500 (0S&P5) 3524.36 -9.86 -0.28
Nasdaq (0NDQC ) 11911.11 +34.85 +0.29
Russell 2000 (IWM) 162.44 -1.35 -0.82
IBD 50 (FFTY) 39.86 +0.04 +0.10
Last Update: 11:18 AM ET 10/13/2020

As the race for a coronavirus vaccine or treatment heats up, Novavax (NVAX) soared 9% in twice normal trade as it tries to regain its 50-day moving average line. The Maryland-based biotech said it’s formed an executive team to lead its efforts to develop a single vaccine for Covid-19 and influenza. Novavax stock may be shaping a new base.

Johnson & Johnson (JNJ) gapped down and fell 2% in heavy trade to its 50-day moving average. The health care giant confirmed late Monday it paused all Covid-19 testing, including late-stage clinical trials, after “an unexplained illness” in one participant.

The Dow Jones giant also reported better-than-expected Q3 earnings and sales before Tuesday’s open. J&J stock is about 4% away from a 155.757 buy point of a cup with handle, according to MarketSmith chart analysis.

Apple Slips, Disney Rallies

Among other Dow stocks, Walgreens Boots Alliance (WBA), Travelers (TRV) and Boeing (BA) also gave up about 2% apiece.

Apple (AAPL) was nearly flat as it seeks direction ahead of a 1 p.m. ET event during which it is expected to launch its 5G iPhone. Shares are working on the right side of a new base with a 138.08 buy point. Apple stock is more than 70% extended from a 72.15 buy point of a cup with handle.

But Disney (DIS) gapped up and rose 5% in huge volume to retake its 50-day moving average. The media and theme parks giant announced a major reorganization to focus primarily on its streaming business. Covid-19 has impacted its theme parks and movie businesses.

Outside the Dow, Amazon.com (AMZN) climbed 1% in triple normal trade. The online retail and cloud services giant kicked off its big two-day sales event, Amazon Prime Day. Amazon stock is close to a 3,552.35 buy point of a cup base.

Gold miners, airlines and other travel-related stocks led the downside among IBD’s 197 industry groups. Software, solar and discount retailers outperformed.

IBD 50 ETF Near Buy Point

The Innovator IBD 50 ETF (FFTY) edged 0.1% higher, after rising 1.3% Monday. It’s just shy of a 40.04 buy point of a flat base. Emergent BioSolutions (EBS) gapped down and plunged 11% in heavy trade. Shares undercut the bottom of a base before slightly paring their loss.

Other big losers included Kirkland Lake Gold (KL) and Franco Nevada (FNV), as well as China’s DouYu (DOYU) and Futu Holdings (FUTU).

But IBD 50 winners included Rocket Cos. (RKT), Vertex Pharmaceuticals (VRTX) and Stamps.com (STMP).

Follow Nancy Gondo on Twitter at @IBD_NGondo

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