The Dow Jones Industrial Average surged nearly 700 points early Monday, after the House passed President Joe Biden’s $1.9 trillion stimulus bill over the weekend.
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The Dow Jones industrials rallied 2%, the S&P 500 rose 1.8% and the Nasdaq advanced 1.7% in the stock market today. Small caps tracked by the Russell 2000 outperformed, up 2.2%. Volume was mixed, higher on the NYSE but lower on the Nasdaq, vs. the same time Friday.
On Saturday, the House passed Biden’s Covid-19 relief bill, which includes $1,400 stimulus checks for many Americans. The bill heads to the Senate now.
Tech stocks boosted the Nasdaq to a 43.6% gain in 2020 for its fifth best year ever. The S&P 500 rose 16.3% and the Dow added 7.2% last year. Read The Big Picture for detailed daily market analysis.
Covid-19 Update
The Covid-19 pandemic continues to roil the U.S. economy, as nationwide lockdowns approach the one-year mark. But there are signs of hope as vaccinations roll out and cases start to plateau in some states.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 31566.67 | +634.30 | +2.05 |
| S&P 500 | (0S&P5) | 3881.78 | +70.63 | +1.85 |
| Nasdaq | (0NDQC ) | 13421.52 | +229.18 | +1.74 |
| Russell 2000 | (IWM) | 224.35 | +6.04 | +2.77 |
| IBD 50 | (FFTY) | 47.01 | +1.35 | +2.96 |
Last Update: 10:20 AM ET 3/1/2021 |
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Cumulative Covid-19 cases worldwide are approaching 115 million with more than 2.5 million deaths, according to Worldometer. In the U.S., cases have topped 29 million with nearly 526,000 deaths, although the number of new cases in the U.S. has slowed dramatically in recent weeks.
On Saturday, Johnson & Johnson‘s (JNJ) coronavirus vaccine became the third approved by the FDA for emergency use. Late Friday, an advisory panel recommended approval for the single-shot vaccine. J&J has pledged to provide 20 million doses this month and 100 million by the end of June.
J&J stock, up nearly 2% in heavy volume, is working on a new flat base with a 173.75 buy point, according to MarketSmith chart analysis. The new base began forming after a 10% advance from a prior flat base pattern.
Dow Winners, No Losers
Boeing (BA) soared 6% in fast trade after testing support at its 50-day moving average on Friday. United Airlines (UAL) said it ordered 25 new Boeing 737 MAX jets. Boeing is in a 21-week consolidation with a 244.18 buy point. Boeing stock is about 8% away from the entry.
Among other blue chip winners, Chevron (CVX), Dow Inc. (DOW) and Intel (INTC) rose about 3% apiece. Apple (AAPL) and Disney (DIS) were among a half-dozen Dow stocks up more than 2% each.
Apple, up nearly 3% in heavy trade, is still below its 50-day line. Shares triggered the 7%-8% loss-cutting sell rule on Feb. 18, as they tumbled below a 138.89 buy point of a cup with handle.
Disney, up 2.8%, is once again extended from a 183.50 buy point of a flat base. It had dipped back into buy range during the past two sessions. Disney stock‘s buy zone topped out at 192.68.
All 30 Dow stocks were up.
Outside The Dow
Tesla (TSLA) rose nearly 4%, on track to halt a two-day slide. Last week, the electric vehicle giant fell below its 10-week moving average. Shares are about 22% off their Jan. 25 high but remain well extended from a 466 buy point of a cup with handle.
China rival Nio (NIO) rallied 6% in fast turnover ahead of its earnings due after the close. Analysts expect the EV maker to lose 6 cents a share on revenue of $1.02 billion. Nio shares are nearly 30% off their Jan. 11 peak after a 17% dive last week.
Zoom Video (ZM), which also reports late Monday, leapt 5% in heavy trade. The stock gapped back above its 50-day line after breaking support last week. Wall Street forecasts the online meeting platform will earn 79 cents a share, up 427% on a year-over-year basis. Revenue is expected to jump 331% to $811.7 million. Zoom stock is more than 30% off its high.
Bitcoin rallied back above the $48,000 level early Monday and was trading around $48,330, according to CoinDesk. The price of Bitcoin hit a record high Feb. 21, topping out at $58,332.
Grayscale Bitcoin Trust (GBTC) tumbled 23.8% last week, but is still holding above its 10-week support level.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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