The Dow Jones Industrial Average and small caps led a broad stock market rally as hopes rose that an effective coronavirus vaccine could soon be a reality. It comes after Pfizer (PFE) and BioNTech (BTNX) announced positive late-stage data for their Covid-19 vaccine candidate. However Netflix (NFLX) was among a host of lockdown stocks that suffered punishing pullbacks.
Market action was further bolstered by the fact former Vice President Joe Biden was broadly called by the media as president-elect on Saturday. However, President Trump has yet to concede the race, and is pursuing legal action in several states. Biden unveiled the members of his 12-person Covid-19 task force on Monday.
S&P 500, Nasdaq Rise
The S&P 500, which features a range of stocks from all parts of economy, was making good progress. It was up around 3.1%. Things were choppier for the tech-heavy Nasdaq, which nevertheless manage to turn in a gain of around 0.6%, though it was off early session highs.
Volume was very encouraging for investors. It was up by around 107% on the NYSE vs. the same time Friday. Trading was also up by around 40% the Nasdaq. CAN SLIM investors prefer volume to be higher on an up day.
U.S. Stock Market Today Overview
Last Update: 1:32 PM ET 11/9/2020
Small caps were managing to outperform the major indexes, with the Russell 2000 rising by a meaty 5.8%.
All sectors were green amid the positive action, with energy, financials and real estate performing best. Communication services, consumer staples and consumer discretionary were the sectors faring worst. The Vanguard Energy Index Fund ETF (VDE) was up by more than 15%.
However it was turning out to be a punishing session for the Innovator IBD 50 ETF (FFTY) as it gave up around 4%. The IBD 50 was also suffering. Big losers included computer peripherals maker Logitech (LOGI), which ceded 17.2%, Meridian Bioscience (VIVO), which lost 14.2% and wood-alternative decking manufacturer Trex (TREX), which gave up 13%. Lam Research (LRCX) was among the handful of winners, gaining 4.4%.
Disney, Boeing Among Dow Jones Winners
The Dow Jones Industrial Average was the leading major index, gaining a strong 4.9%. Stocks adversely affected by the impact of Covid-19 were among the biggest winners.
Aerospace giant Boeing (BA) was among the big winners, rising by more than 14%. The stock managed to gap through its 50 and 200-day lines. It still has a poor Composite Rating of 10, however.
The handful of losers included home improvement stock Home Depot (HD), which slipped 2.3%.
Lockdown Winners Fall
A cluster of stocks that have been benefiting from the coronavirus lockdowns were beaten back, though they have rallied from lows.
Netflix (NFLX) was down 6.4% after trimming losses. E-commerce stock Shopify (SHOP) ceded 9.5%, and at-home fitness stock Peloton (PTON) gave up more than 15%. Amazon (AMZN), which has also been benefiting from a boom in e-commerce, slipped 2.5%.
Another major loser was Zoom Video Communications (ZM). The stock, which has been one of the major winners amid the working from home trend, lost more than 13%. It flashed a possible sell signal as it plowed through its 50-day line. Nevertheless, it is still up almost 550% so far in 2020.
These Stocks Break Out
Software stock Intuit (INTU) has broken out of a cup with handle base, MarketSmith analysis shows. The stock’s relative strength line hit a fresh high, which is a bullish sign.
The TurboTax maker has a strong IBD Composite Rating of 93. The stock’s earnings are even more impressive than its stock market performance.
The Stock Checkup shows average earnings growth over the past three quarters is well clear of the 25% growth sought by CAN SLIM connoisseurs. Even more impressively, earnings exploded to $1.18 a share in the most recent quarter, vs. a year-ago loss of 9 cents a share.
Nasdaq (NDAQ) broke out of a flat base with a buy point of 138.04. However it gave up some of its early gains to fall back below its buy zone. It has a strong Composite Rating of 93.
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