Key market indexes opened higher and faded midday Tuesday, as the Dow Jones Industrial Average erased most of a 136-point early gain. But they recovered a bit in early afternoon trading.
The Dow Jones industrials was up 0.4%, the S&P 500 edged 0.2% higher and the Nasdaq was flat in the stock market today. Small caps tracked by the Russell 2000 rallied 1.5%. Volume was higher on both major exchanges vs. the same time Monday.
President Donald Trump last night left Walter Reed Medical Center and returned to the White House, where he will continue his coronavirus treatment. Tuesday morning, he tweeted:
“Flu season is coming up! Many people every year, sometimes over 100,000, and despite the Vaccine, die from the Flu,” Trump tweeted on Tuesday morning. “Are we going to close down our Country? No, we have learned to live with it, just like we are learning to live with Covid, in most populations far less lethal!!!”
U.S. Stock Market Today Overview
Last Update: 1:16 PM ET 10/6/2020
Monday evening, Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, warned that Trump is still in the early stages of the infection and could go into “reversal.”
The Nasdaq holds a 26% year-to-date gain despite recent volatility, while the S&P 500 was up 6% through Monday’s close. The Dow is down 1% 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 Wednesday, the IBD stock market outlook was upgraded to “confirmed uptrend” from “market in correction.”
Worldwide coronavirus cases have topped 35.8 million, with more than 1.05 million deaths, according to Worldometer. In the U.S., confirmed cases are approaching 7.7 million, with the death toll rising past 215,000.
As the race toward a coronavirus treatment or vaccine continues, BioNTech (BNTX) soared 7% in heavy trade as it shapes the right side of a cup base. The potential buy point for now is 105.09, or a dime above the left-side high.
German partner Pfizer (PFE) said early Tuesday they’ve begun a “rolling submission” for approval of their Covid-19 vaccine candidate with the European Medicines Agency. They are in Phase 3 testing. Pfizer shares were roughly flat.
Meantime, Vir Biotechnology (VIR) and GlaxoSmithKline (GSK) said they are expanding final-phase testing for their Covid-19 treatment. San Francisco-based Vir gapped up and rose more than 6% as it aims to retake its 50-day line. GlaxoSmithKline, though, fell 1.4%.
Boeing Hits Turbulence
Boeing (BA), up 1.8% early, reversed to a 2% loss after the jet maker lowered its 20-year forecast for commercial aircraft deliveries due to the Covid-19 impact. It now expects to make 43,110 deliveries vs. an earlier forecast for 44,040.
Apple (AAPL), down 1%, also weighed on the Dow Jones index. The iPhone maker, which rallied 3.1% Monday, is testing its 50-day line again. Shares are still more than 60% extended from a 72.15 buy point of a cup with handle.
Among other blue-chip losers, Microsoft (MSFT) and Merck (MRK) gave up more than 1% each. Microsoft is still encountering resistance near its 50-day line. Shares are 15% extended from a 180.10 buy point of a cup with handle. Microsoft is an IBD Leaderboard and IBD Long-Term Leader stock.
Dow Inc. is now extended from a 46.03 buy point of a shallow nine-week base, according to MarketSmith chart analysis. But a rebound off its 10-week moving average sets up a chance to add a smaller number of shares.
Goldman rose 1.8% to gap back above its 50-day line. The stock continues working on the handle to a cup base. It’s about 9% away from a 225.34 buy point.
The Innovator IBD 50 ETF (FFTY) advanced 0.8%, thanks to big gains from Emergent BioSolutions (EBS) and Futu Holdings (FUTU), up about 7% each. Veeva Systems (VEEV), National Beverage (FIZZ) and Digital Turbine (APPS) added 3% apiece.
Folldow Nancy Gondo on Twitter at @IBD_NGondo
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