Despite stalled stimulus deal talks, stocks gapped up at the open Monday with the Dow Jones Industrial Average up 160 points as Apple (AAPL) stock rallied.
Dow Jones Lags S& 500, Nasdaq
The Nasdaq rallied 1.5%, the S&P 500 rose 1% and the Dow Jones industrials advanced 0.7% in the stock market today. Small caps tracked by the Russell 2000 climbed 0.4%. Volume was mixed, higher on the NYSE and lower on the Nasdaq, vs. the same time Friday.
House Speaker Nancy Pelosi said Sunday that coronavirus aid stimulus talks have stalled. She called the White House’s $1.8 trillion proposal “wholly insufficient” in a letter to House Democrats.
Treasury Secretary Steven Mnuchin and White House Chief Of State Mark Meadows said in a letter to lawmakers they would keep negotiating with Pelosi and Senate Democratic leader Chuck Schumer on a comprehensive bill.
U.S. Stock Market Today Overview
Last Update: 10:22 AM ET 10/12/2020
The Nasdaq holds a 29% year-to-date gain despite recent volatility, while the S&P 500 was up 8% through Friday’s close. The Dow is flat and the Russell 2000 is now 2% 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.”
Worldwide coronavirus cases have topped 37.8 million, with over 1.08 million deaths, according to Worldometer. In the U.S., confirmed cases are approaching 8 million, with the death toll near 220,000.
Apple Leads Dow
Apple gapped up and leapt 3% to move off its 50-day moving average, ahead of Tuesday’s expected launch of its 5G iPhone. Shares are about 60% extended from a 72.15 buy point of a cup with handle. They are now working on a new consolidation with a 136.08 entry, according to MarketSmith chart analysis.
Automakers, software and internet stocks led the upside among IBD’s 197 industry groups. But solar, hospital and oil and gas stocks lagged.
Tesla (TSLA) rose 1.5% in slightly higher than usual volume, on track to extend its win streak to four sessions. Shares rose 2% on Friday. They continue to find support along the 50-day line as they build a new base with a 502.59 buy point. The electric-car maker is an IBD Leaderboard stock.
Tech Stocks Rally
Twilio (TWLO) rallied 5% in heavy trade to a new high. The enterprise software maker said it’s buying Segment, a customer data platform, for about $3.2 billion in stock. Twilio is about 12% extended from a 283.44 buy point of a double-bottom base cleared Oct. 2.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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