The Dow Jones Industrial Average jumped more than 275 points due to the increase in coronavirus cases early Monday, while the current stock market decline continues. Dow Jones Boeing stock rose 8% on Max jet news, while Facebook briefly collapsed by over 3%.
Blue chip stock Apple (AAPL) e Microsoft (MSFT) were clearly mixed in today’s stock market. Stock of Dow Jones Boeing (BA) rose on a key regulatory nod for the 737 Max jet. Nike (NKE) rose approximately 1% among Dow 30 stocks after Friday’s sell-off.
Actions to watch for Monday include IBD charts Facebook (FB) e Netflix (NFLX). Creator of coronavirus treatment Gilead Sciences (GILD) and IBD SwingTrader securities Spotify (SPOT) were among the moving stocks in the morning trade.
DJIA today: coronavirus cases on the rise
Dow Jones industrialists gained 1% in Monday morning trade, while the S&P 500 rose 0.3%. The Nasdaq composite fell 0.3% after cutting losses.
The coronavirus epidemic continues to spread in the United States According to the Worldometer data tracker, the cumulative number of confirmed cases in the United States exceeded 2.6 million over the weekend. On Friday, new daily cases exceeded 47,000, setting a new one-day record. On Sunday, new daily cases increased by over 40,000 for the fourth consecutive day. However, as new daily cases continue to increase, there has been no corresponding increase in the number of daily deaths, a key metric to monitor.
The cumulative total of Covid-19 cases confirmed since the outbreak began worldwide exceeded 10 million over the weekend, with over 500,000 virus-related deaths.
As part of the coronavirus stock market rally, Nasdaq, a strong technology sector, grew 8.7% by Friday’s close. Meanwhile, the S&P 500 and DJIA declined 6.9% and 12.3% from the beginning of the year until the close of June 25th.
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Coronavirus stock market rally
According to IBD’s The Big Picture, the coronavirus stock market rally remains in an upward trend after rebounding from lows over three months ago on March 23rd. The main equity indices confirmed the rebound as a new upward trend on April 2nd.
Friday’s Big Picture, “An explosion of new coronavirus cases in the mainly southern and southwestern states dominated news headlines last week. And Friday’s stock market decline reiterated that the economy 1 in the world is hardly showing any immunity to the most powerful virus in decades. “
Actions to watch for include the best actions of long-term IBD leaders. The list of long-term IBD leaders focuses on companies with stable earnings growth and price performance.
ETF strategy on the stock market and how to invest in the current upward trend
Dow Jones News: Boeing, Nike
Boeing football seemed to unlock a four-day losing streak early Monday. Shares rose 8% in morning trading before cutting earnings. On Sunday, Boeing received authorization from the FAA to begin test flights on its Max 737 jet. Test flights could begin as soon as Monday.
Boeing shares have around 55% off their 52-week high after a three-week losing streak.
Dow Jones’ retail leader, Nike, jumped about 1% in early Monday, to the fore after Friday’s losses. The stock tumbled 7.6% on Friday, closing the session just below the 50-day moving average, after the company posted a surprise loss for the quarter. Sales also missed analyst goals.
The Nike stock is still forming a cup with a handle with a purchase point of 104.79, according to the analysis of the MarketSmith chart.
Actions on the move: Gilead, Spotify
Gilead Sciences, a manufacturer of coronavirus treatments, jumped 2% after announcing its pricing plans for its remdesivir drug. The company said it will cost $ 3,120 for a typical American patient with commercial insurance and will start paying for Covid-19 treatment in July. The stocks are looking to return above their 50-day line as a base with a purchase point of 86.07 continues to take shape.
IBD SwingTrader Spotify stock fell nearly 3% before reversing morning trade after Guggenheim downgraded the stock from neutral to sold.
Spotify’s stock is clearly extended from a purchase point of 160.08 to a double bottom, according to the analysis of the MarketSmith chart.
Actions to watch: Facebook, Netflix
Facebook shares plunged 8.3% later on Friday Unilever (UN) said it will stop advertising on Facebook and Instagram. According to the company’s statement, “Continuing to advertise on these platforms right now would not add value to people and society. We will monitor ongoing and review our current position if necessary.”
As of June 23, the IBD Leaderboard stock has basically given up a total gain of 13.8% from a point of purchase of 215.38 in a cup with a handle after a break on May 19. When a round-trip double-digit gain occurs, investors should consider selling to avoid making a loss on the stock.
Earlier on Monday, Facebook shares reduced losses to around 1% afterwards PepsiCo (PEP) Hershey (HSY) e Starbucks (SBUX) joined the boycott of Facebook ads over the weekend.
Netflix, a member of the FANG and title of the IBD ranking, sold a buying point of 459.07 on a flat base in the decline of almost 5% on Friday. Look for a 50-day moving average test this week. A sharp break in that support level would be a sell signal. Shares ended around 2% above the 50-day line on Friday.
Netflix shares fell 1% early Monday and is just above the 50 day line after testing that level at the start of the session.
According to the IBD ranking comment, “Netflix is below the point of purchase and its 10-day moving average. It was brought to a full position on June 22.”
According to IBD Stock Checkup, Netflix shares have a 98 out of a 99 IBD Composite Rating as high as possible, placing it in the upper range of growing stocks. The composite rating – an easy way to identify stocks with the highest growth – is a mixture of fundamental metrics and key techniques to help investors evaluate a stock’s strengths.
Leader Dow Jones: Apple, Microsoft
Among Dow Jones’ best stocks, Apple rose 0.5% early Monday, while the stock continues to retreat from its record highs set for June 23rd.
The shares extended well beyond the 319.79 point of purchase of a handle, which offered an additional item. The rumor was an opportunity for investors to increase their positions. Meanwhile, the shares are still in the 20% -25% profit zone from the 288.35 point of purchase of a cup with handle.
The Microsoft software leader fell 0.7% on Monday morning. The shares returned to the buy area again above a cup-with-handle buy point of 187.61. The 5% purchase range reaches up to 197.
On a bullish level, the RS line of the stock is still at the maximum, despite the current pullback. The RS line measures the trend of the price of a security compared to the vast market.
The blue chip giant is an equity idea in the IBD chart and a long-term IBD leader.
Make sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on Dow Jones’ growing stocks and industrial average.
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