The Dow Jones Industrial Average fell more than 150 points early Monday, as the coronavirus stock market rally continues. Dow Jones stock Pfizer jumped as much as 3.8% on Covid-19 vaccine news, while FANG stock leader Amazon rallied 3% on price-target hikes.
Blue chip stocks Apple (AAPL) and Microsoft (MSFT) were higher in today’s stock market. Pfizer (PFE) jumped as much as 3.8% on coronavirus vaccine news before trimming gains. Dow Jones stock IBM (IBM) will report its quarterly earnings results after the stock market close. Stocks in or near buy zones include Chipotle Mexican Grill (CMG) and recent IBD Stock Of The Day Costco (COST). Amazon (AMZN) jumped 3% on multiple price-target hikes.
Dow Jones Today
The Dow Jones industrials fell 0.5% early Monday, while the S&P 500 pared its losses to trade flat. The tech-heavy Nasdaq composite rallied 0.7% to take the early lead.
Among exchange traded funds, Innovator IBD 50 (FFTY) gained 1.4% Monday morning. The ETF of top growth stocks is about 3% off its 52-week high. The Nasdaq 100-linked Invesco QQQ Trust (QQQ) ETF moved up 0.8%. Meanwhile, the SPDR S&P 500 ETF (SPY) moved down 0.2%.
The coronavirus outbreak continues to spread across the U.S. According to the Worldometer data tracker, the cumulative number of confirmed U.S. cases approached 3.9 million Monday. On Friday, daily new cases hit another record at more than 74,000. However, while daily new cases continue to surge, there has yet to be a corresponding rise in the number of daily deaths, a key metric to monitor.
The cumulative total of Covid-19 cases confirmed since the start of the outbreak worldwide topped 14.6 million Monday, with more than 609,000 virus-related deaths.
Within the coronavirus stock market rally, the tech-heavy Nasdaq is up 17.1% for the year through Friday’s close. Meanwhile, the S&P 500 and DJIA are down 0.2% and 6.5%, year to date, through the July 17 close.
Coronavirus Stock Market Rally
According to IBD’s The Big Picture, the coronavirus stock market rally remains in an uptrend after rebounding from lows nearly four months ago on March 23. The major stock indexes confirmed the rebound as a new uptrend on April 2.
Per Friday’s The Big Picture, “Top-rated growth stocks rebounded Friday after recent bouts of selling, and stock market bulls got another day of picture-perfect price action in the major stock indexes. The Dow Jones and S&P 500 traded in orderly fashion all day, not moving much in either direction.”
Stocks to watch include the top stocks on IBD Long-Term Leaders. The IBD Long-Term Leaders list focuses on companies with stable earnings growth and price performance.
Dow Jones News: Pfizer Coronavirus Vaccine, IBM Earnings
Pfizer and partner BioNTech (BNTX) announced an agreement to supply the U.K. with 30 million doses of a coronavirus vaccine candidate, which is not yet approved, and still undergoing clinical trials. Pfizer stock jumped 3.8% before paring gains to about 2% in morning trade. The drug giant is one of the top performers on the Dow Jones Industrial Average.
Shares are approaching a 39.32 buy point in a cup base.
IBM stock gained nearly 1% ahead of the company’s earnings results after the close Monday. The company is expected to earn $2.06 per share on revenue of $17.4 billion, according to IBD data.
The Dow Jones stock is tracing a cup with handle with a 135.98 buy point. A key flaw is the stock’s lagging relative strength line, indicating sharp underperformance vs. the broad market.
Top Stocks Near Buy Zones: Chipotle, Costco
IBD Leaderboard stock Chipotle is moving out of the 5% buy zone from a 1,087.10 buy point in a flat base — according to MarketSmith chart analysis — after a July 6 breakout. The 5% buy zone runs up to 1,141.46. Shares rallied 1.5% Monday morning.
According to IBD Leaderboard commentary, “Chipotle Mexican Grill is regaining strength after a dip near its buy point and is in buy range. It was cut to half from a three-quarter position on Leaderboard Tuesday.”
Costco is trading in the buy range above a 315.45 handle buy point after a breakout on July 7 amid Monday’s 0.2% decline. The stock was featured as the IBD Stock Of The Day on the breakout day. Shares are just below a 325.36 buy point in a consolidation base.
IBD Stock Checkup shows that Costco stock has a solid 85 out of a highest-possible 99 IBD Composite Rating. The Composite Rating — an easy way to identify top growth stocks — is a blend of key fundamental and technical metrics to help investors gauge a stock’s strengths.
Stocks On The Move: Amazon
E-commerce giant Amazon jumped 3% after Goldman Sachs and Jefferies upped their price targets to 3,800 per share due to strong online spending this year.
Amazon stock is about 9% off its 52-week high after last week’s 7.4% decline. Shares are more than 35% from a 2,186.05 buy point in a cup base.
Dow Jones Leaders: Apple, Microsoft
Among the top Dow Jones stocks, Apple edged higher early Monday, as the stock looks to snap a two-day losing streak. Shares are just 4% away from new highs after reached an all-time high of 399.82 on July 13.
Shares are above the 20%-25% profit-taking zone from a cup-with-handle’s 288.35 buy point. Bullishly, the stock’s RS line is near new highs, indicating sharp stock market outperformance. The RS line measures a stock’s price performance vs. the broad market.
Software leader Microsoft gained 1.3% Monday morning after price-target hikes at Raymond James and Stifel Nicolaus. Shares are on pace to end a three-day losing streak and are about 6% off their all-time high set on July 9.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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