Stocks rallied late Monday after President Trump tweeted an update, sending the Dow Jones Industrial Average up over 450 points.
The Nasdaq rallied 2.2%, the S&P 500 rose 1.7%, and the Dow Jones industrials advanced 1.6% in the stock market today. Small caps tracked by the Russell 2000 surged 2.5%. Volume was lower on both major exchanges vs. the same time Friday.
The Nasdaq holds a 23% year-to-date gain despite recent volatility, while the S&P 500 was up 4% through Friday’s close. The Dow is down 3% and the Russell 2000 is 8% 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.”
Less than an hour ago, Trump tweeted: “I will be leaving the great Walter Reed Medical Center today at 6:30 P.M. (ET) Feeling really good! Don’t be afraid of Covid. Don’t let it dominate your life.”
Trump’s press secretary, Kayleigh McEnany, earlier today became the latest White House staffer to test positive for Covid-19.
U.S. Stock Market Today Overview
Last Update: 3:26 PM ET 10/5/2020
Worldwide coronavirus cases are approaching 35.5 million, with more than 1.04 million deaths, according to Worldometer. In the U.S., confirmed cases have topped 7.6 million, with the death toll closing in on 215,000.
As the race for a coronavirus treatments and vaccines heats up, Regeneron Pharmaceuticals (REGN) soared 7% in heavy volume to gap back above its 50-day moving average. The move was fueled by news that President Donald Trump is being treated for Covid-19 with Regeneron’s antibody cocktail, which the biotech is still developing.
Regeneron is now working on the right side of a new cup-type base.
Gilead Sciences (GILD) rose 2.6% in twice normal trade. Doctors are also giving Trump a five-day course of Gilead’s remdesivir, the first drug to get FDA Emergency Use Authorization. The drug has been shown to shorten hospital stays for some patients seriously ill with Covid-19.
Gilead stock has been stuck below its 50-day line since late July and is 26% off its 52-week high.
In non-Covid news, MyoKardia (MYOK) gapped up and soared nearly 60% to a record high. Bristol Myers Squibb (BMY) said early Monday it will buy the San Francisco-based biotech for $13.1 billion. MyoKardia’s develops treatments for rare heart diseases. Bristol Myers edged up 0.3%.
Apple, Microsoft Bounce Back
Amgen (AMGN) was the biggest winner, with a 4% pop. The biotech stock is working on a flat base with a 265.07 buy point. It’s about 4% away from a potential breakout.
Apple stock is 17% off its 52-week high as it tests its 50-day line again, according to MarketSmith chart analysis. It remains sharply extended from a 72.16 buy point of a cup with handle cleared in early May.
Microsoft (MSFT), which fell 3% on Friday, gained 1%. It’s been hitting resistance near its 50-day line the past month. The IBD Leaderboard stock is 16% extended from a May 5 breakout past a 180.10 buy point of a cup with handle. The software giant is also an IBD Long-Term Leaderboard stock. Microsoft may be building a new base.
Solar, biotech and bank stocks led the upside among IBD’s 197 industry groups. The few losers included gambling, homebuilders and travel-related stocks.
DraftKings Among Big Losers
In the gambling/gaming group, DraftKings (DKNG) slumped nearly 7% in heavy trade. The online sports platform announced a public offering of 32 million shares, from the company and certain selling stockholders.
DraftKings shares remain sharply extended from a 44.89 buy point of a cup base cleared Sept. 14. The company also sold shares in June. The stock has 748.6 million shares outstanding and a float of 355.6 million.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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