The Dow Jones Industrial Average briefly jumped more than 200 points early Wednesday on positive Covid-19 vaccine news before erasing gains, as the coronavirus stock market rally continues. Dow Jones stock Pfizer surged as much as 5%, while FedEx soared as much as 16% on earnings.
Blue chip stocks Apple (AAPL) and Microsoft (MSFT) rallied 0.4% and 0.7%, respectively, in today’s stock market. Dow Jones stock Pfizer (PFE) jumped as much as 5.6% on positive coronavirus vaccine news and was the top performer on the Dow 30. Stocks to watch include IBD Leaderboard stock Chipotle Mexican Grill (CMG) and IBD 50 stock Kroger (KR). Both are approaching new buy points in the current stock market rally.
FedEx (FDX) soared as much as 16% on strong earnings results late Tuesday.
Dow Jones Today: Coronavirus Vaccine News
The Dow Jones industrials turned unchanged in morning trade Wednesday, while the S&P 500 gained 0.4%. The Nasdaq composite rose 0.75%.
An experimental coronavirus vaccine developed by Dow Jones drug giant Pfizer and German biotech company BioNTech (BNTX) showed positive results, according to the company’s press release. “If the ongoing studies are successful and the vaccine candidate receives regulatory approval, the companies expect to manufacture up to 100 million doses by the end of 2020 and potentially more than 1.2 billion doses by the end of 2021.”
Pfizer stock surged as much as 5.6% and is moving up the right side of a new base that currently shows a 39.32 buy point.
BioNTech stock jumped about 10% before paring gains to 4%, and remains about 30% off its 52-week high.
In economic data, the ISM Manufacturing index recorded a 52.6 reading in June, better than the 49.6 that economists had expected. The index is back above the 50 mid-point which separates expansion from contraction.
The coronavirus outbreak continues to spread across the U.S. According to the Worldometer data tracker, the cumulative number of confirmed U.S. cases topped 2.7 million Wednesday. On Tuesday, daily new cases again exceeded 46,000. 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 10.6 million Tuesday, with more than 514,000 virus-related deaths.
Within the coronavirus stock market rally, the tech-heavy Nasdaq is up 12.1% for the year through Tuesday’s close. Meanwhile, the S&P 500 and DJIA are down 4% and 9.5%, year to date, through the June 30 close.
For the quarter, the S&P 500 advanced 20%, its best quarter since 1998. The Nasdaq had its best quarter since 2001 with a scorching 30.6% gain. The Dow Jones Industrial Average showed its biggest one-quarter gain since 1987, surging 17.8%.
Coronavirus Stock Market Rally
According to IBD’s The Big Picture, the coronavirus stock market rally remains in an uptrend after rebounding from lows over three months ago on March 23. The major stock indexes confirmed the rebound as a new uptrend on April 2.
Per Tuesday’s The Big Picture, “Since the Nasdaq staged its Day 10 follow-through day on April 6, a 7.3% rip higher, in volume that boomed 17% higher vs. the prior session, it’s posted a ton of daily gains in above-average or higher turnover vs. the prior session.”
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.
Stock Market Earnings: FedEx Soars
Delivery giant FedEx soared as much as 16% after reporting strong fiscal Q4 results after the close Tuesday.
FedEx stock is breaking out past a 150.09 entry in a cup with handle. A key flaw is the stock’s lagging relative strength line. FedEx hasn’t been a leading stock since it hit an-time high in January 2018. Perhaps today’s breakout can lead to a significant upside move.
Top Stocks Near Buy Zones: Chipotle, Kroger
IBD Leaderboard stock Chipotle is tracing a flat base with a 1,087.10 buy point — according to MarketSmith chart analysis — amid a solid breakout move above a 909.98 entry in a cup with handle. Shares moved up 0.2% early Wednesday
According to IBD Leaderboard commentary, “Chipotle Mexican Grill is forming a flat base. It was raised to a half position on Leaderboard June 15 when it came close to a test of the 10-week moving average.”
IBD Stock Checkup shows that Chipotle stock has a solid 91 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.
Monday’s IBD 50 Stocks To Watch pick, Kroger, is approaching a 34.60 buy point in a cup with handle. Kroger shares moved up 0.1% Wednesday morning.
Kroger stock ranks No. 33 in the IBD 50. (The IBD 50 is a list of leading growth stocks with strong relative price strength and top-notch fundamentals.) Kroger was added to the IBD 50 list on June 25.
Dow Jones Leaders: Apple, Microsoft
Among the top Dow Jones stocks, Apple moved up 0.4% early Wednesday, as the stock nears another all-time high. Shares are just 2% away from new highs amid a potential three-day win streak.
Shares are well extended past a handle’s 319.79 buy point, which offered an opportunity for investors to add to their positions. Meanwhile, shares are still in the 20%-25% profit-taking zone from a cup-with-handle’s 288.35 buy point.
Software leader Microsoft gained 0.7% Wednesday morning to hit another all-time high. Shares are again extended above a cup-with-handle buy point of 187.61 after Monday’s 1.1% gain. The 5% buy range goes up to 197.
Bullishly, the stock’s RS line is again at new highs despite the current pullback, indicating sharp stock market outperformance. The RS line measures a stock’s price performance vs. the broad market.
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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