The Dow Jones Industrial Average briefly jumped more than 300 points on new coronavirus vaccine news Monday before trimming gains. Tech giant Tesla surged more than 7% to record highs on a price-target hike, while Chinese rival Nio advanced 5%. Apple stumbled nearly 2% in morning trade.
Among the Dow Jones leaders, Apple (AAPL) slid 1.7%, while Microsoft (MSFT) moved down 0.4% in today’s stock market. Meanwhile, Salesforce.com (CRM) is approaching a new buy point.
Tesla (TSLA) jumped to all-time highs Monday morning with a 7% surge following a price-target hike. Chinese rival Nio (NIO) raced more than 4% higher, as it neared an all-time high.
Stocks in or near buy zones in the stock market rally are Advanced Micro Devices (AMD), Target (TGT) and Zumiez (ZUMZ).
Microsoft, Target and Tesla are IBD Leaderboard stocks.
Dow Jones Today: Coronavirus Vaccine
Early Monday, the Dow Jones Industrial Average rallied 0.8%, while the S&P 500 moved up 0.5%. The tech-heavy Nasdaq composite was up just 0.15% after cutting early gains.
AstraZeneca (AZN) reported on Monday that its coronavirus vaccine showed an average efficacy of 70%, ranging from 62% or 90% effective, depending on the dosage. Shares fell over 2% in morning trade.
“Today marks an important milestone in our fight against the pandemic. This vaccine’s efficacy and safety confirm that it will be highly effective against COVID-19 and will have an immediate impact on this public health emergency. Furthermore, the vaccine’s simple supply chain and our no-profit pledge and commitment to broad, equitable and timely access means it will be affordable and globally available, supplying hundreds of millions of doses on approval,” according to CEO Pascal Soriot in a press release.
U.S. Stock Market Today Overview
Last Update: 10:38 AM ET 11/23/2020
Among exchange traded funds, Innovator IBD 50 (FFTY) rose 0.1% Monday. The Nasdaq 100-linked Invesco QQQ Trust ETF (QQQ) fell 0.1%. Meanwhile, the SPDR S&P 500 ETF (SPY) moved up 0.3%.
Amid the coronavirus stock market rally, the tech-heavy Nasdaq is up 32.1% for the year through Friday’s close. Meanwhile, the S&P 500 is up 10.1%, while the Dow is up 2.5% year to date, through the Nov. 20 close.
According to the Worldometer data tracker, the cumulative number of confirmed coronavirus cases in the U.S. topped 12.5 million on Monday. Total virus-related deaths rose past 262,000.
The cumulative total of worldwide Covid-19 cases confirmed since the start of the outbreak topped 59.1 million Monday, with more than 1.39 million virus-related deaths.
Coronavirus Stock Market Rally
According to IBD’s The Big Picture, the stock market returned to a new uptrend following a bullish follow-through day on Nov. 4.
Friday’s Big Picture commented, “The distribution-day count for the Nasdaq and S&P 500 is still mild, and plenty of growth stocks have recovered nicely after the Nov. 9-10 sell-off.”
Investors should use the stock market strength as a go-ahead to buy new breakouts. Start slowly with new purchases and see how they perform. After raising cash during the recent correction, don’t rush to be fully invested all at once. Try some new buys. If they work, you can add to them; if not, you can back away.
In particular, focus on stocks with strong relative strength. Find them by using the relative strength line. The RS line measures a stock’s price performance vs. the S&P 500. If the stock is outperforming the broader market, then the RS line angles upward. If a stock is performing worse than the broad market, then the line will point lower.
Stocks to watch include IBD Long-Term Leaders, companies with stable earnings growth and price performance. Fair Isaac (FICO) is the most recent addition to the list, added on Nov. 13. Shares are extended after they cleared resistance around 450.
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Dow Jones Stocks: Salesforce Nears New Entry
Dow Jones stock Salesforce.com is trading near a 271.02 buy point in a double bottom with handle, according to MarketSmith chart analysis. Shares reversed to fall 1% early Monday.
The cloud software company is the No. 2-performing stock on the Dow Jones Industrial Average, advancing 58.7% year to date.
Stocks In Or Near Buy Zones: AMD, Target, Zumiez
Chip giant Advanced Micro Devices is rapidly approaching an 88.82 buy point in a double bottom, according to MarketSmith chart analysis. Shares are about 1% away from the entry amid Monday’s 2.2% rise. A potential handle entry offers a slightly lower buy point, at 87.15.
According to IBD Stock Checkup, AMD stock boasts a perfect 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.
Wednesday’s IBD Stock Of The Day, Target, is just in the 5% buy zone above a 167.52 buy point in a short consolidation. Shares rallied 2% in morning trade. The buy range runs up to 175.90, so the stock is barely in buy range.
According to IBD Leaderboard commentary, “Target cleared a short pattern in heavy volume after strong earnings and is in buy range still. Target was added as a half position Wednesday.”
Top stock to watch Zumiez is trying to break out above a rare buy point in an ascending base at 35.64. Shares advanced over 2% Monday morning.
The retail leader was featured in Friday’s Stock Spotlight column.
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Tesla Stock Hits Record Highs; Nio Races Higher
IBD Leaderboard stock Tesla raced to all-time highs Monday morning with a 7% jump following a price-target hike at Wedbush. The analyst firm raised its price target from 500 to 560, while maintaining a neutral rating.
On Wednesday, shares broke out above a 466 buy point in an awkward cup with handle. The 5% buy zone tops out at 489.30, so the stock is extended. Early Monday, the stock set an all-time high of 525.14.
Tesla was a recent IBD Stock Of The Day.
Chinese rival Nio advanced over 5% early Monday, on pace to extend a win streak to three sessions.
The stock is about 6% off its 52-week high, which was reached on Nov. 13 at 54.20.
Dow Jones Leaders: Apple, Microsoft
Among the top Dow Jones stocks, Apple moved down 1.8% Monday, on pace to extend Friday’s 1.1% decline. Shares are still holding above their key 50-day line. Apple stock is tracing a new base with a 138.08 buy point. An early entry exists at 125.49.
The blue-chip giant is the No. 1-performing Dow Jones stock for 2020, with a 59.8% advance through Friday.
Software giant Microsoft moved down 0.4% Monday, as the stock tries to regain its 50-day moving average line. Shares fell below that critical support level amid Friday’s 1% loss.
Year to date, Microsoft is one of the top Dow Jones stocks, advancing 33.4% through the Nov. 20 close.
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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