The Nasdaq surged 4% Tuesday afternoon as tech stocks staged a strong rebound, while Apple and Intel boosted the Dow to a 300-point gain.
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The Nasdaq surged 3.8%, the S&P 500 soared 2.1%, and the Dow Jones industrials rose 1% in the stock market today. Small caps tracked by the Russell 2000 rallied 2.4%. Volume was mixed, lower on the NYSE and higher on the Nasdaq, vs. the same time Monday.
Stocks rallied early as the 10-year Treasury yield moved off recent highs. After rising past 1.6% the past week, the yield was down at 1.551% in afternoon trade.
Meantime, the House will take up President Joe Biden’s $1.9 trillion coronavirus stimulus plan by Wednesday, Speaker Nancy Pelosi said on Monday.
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. After a strong start this year, the market is now in a correction but is rebounding. Read The Big Picture for detailed daily market analysis.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 32055.76 | +253.32 | +0.80 |
| S&P 500 | (0S&P5) | 3897.50 | +76.15 | +1.99 |
| Nasdaq | (0NDQC ) | 13114.75 | +505.59 | +4.01 |
| Russell 2000 | (IWM) | 223.89 | +5.15 | +2.35 |
| IBD 50 | (FFTY) | 44.55 | +1.82 | +4.26 |
Last Update: 1:30 PM ET 3/9/2021 |
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The Covid-19 pandemic continues to roil the U.S. economy, as nationwide lockdowns approach the one-year mark. But many states are relaxing restrictions, and there are signs of hope as vaccinations roll out and cases start to plateau in some states.
Cumulative Covid-19 cases worldwide are approaching 118 million with more than 2.6 million deaths, according to Worldometer. In the U.S., cases have topped 29.7 million with nearly 539,000 deaths, although the number of new cases in the U.S. has slowed dramatically in recent weeks.
Dow Winners And Losers
Apple (AAPL) and Intel (INTC), up nearly 4% each, were the Dow’s biggest winners. Apple, which fell 4% Monday, is testing support at its 40-week moving average. But it’s been stuck below its 10-week line for almost four weeks.
On Feb. 18, Apple stock triggered the 7%-8% loss-cutting sell rule when it fell more than 7% below a 138.89 buy point of a cup with handle.
Intel has been finding support along its rising 10-week moving average. It’s now about 2% away from a 63.64 buy point of a cup with handle, according to MarketSmith chart analysis. The chip giant has a 72 Composite Rating, which puts it 18th in the 33-stock chipmaker group. Intel stock is about 4% off its 52-week high.
Boeing (BA) lifted 3% in fast turnover as it shapes the right side of a cup base with a 244.18 buy point. It’s about 5% away from the entry.
Among other blue-chip winners, Microsoft (MSFT), Home Depot (HD) and Salesforce.com (CRM) added more than 2% each.
But Disney (DIS), down 3% in heavy trade, was the Dow’s biggest loser. Shares remain slightly extended from a 183.50 buy point of a flat base. On Monday, Disney stock rallied 6% after California signaled that Disneyland and California Adventure could open April 1 with limited capacity, after being closed now for nearly a year.
Outside The Dow
Automaker, solar, software and chip stocks led the upside among IBD’s industry groups. Oil and gas, utilities and financial stocks lagged.
In the automaker group, Tesla (TSLA) raced 18% higher in fast trade, on pace to end a five-session losing streak. If the stock continues to rise from here, the electric vehicle giant could build a new base.
On Feb. 22, Tesla stock broke down below its 10-week line, triggering a sell signal. Though it’s about 26% off its 52-week high, it remains well extended from a 466 buy point of a cup with handle.
China rival Nio (NIO) also staged a strong rebound, up 18% in heavy volume. Shares have been stuck below the 50-day moving average since mid-February.
CarMax (KMX) climbed 1% to extend its Monday breakout past a 128.68 buy point of a six-week flat base. It remains in buy range, which tops out at 135.11. The stock is trading at all-time highs.
Element Solutions (ESI) vaulted 7% to break out past a 19.50 buy point of a nine-week cup base in heavy trade. The stock is near the top of its buy range, which goes up to 20.48.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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