The Dow Jones Industrial Average soared 400 points, to a record high on Monday, thanks to Microsoft’s flight and Friday’s bullish jobs report.
X
The S&P 500 rose 1.4%, the Nasdaq rose 1.3% and the Dow Jones industrials gained 1.2% in the stock market today. Small capitalizations monitored by Russell 2000, up 0.4%, were left behind. The volume was lower on both major exchanges compared to the same time on Thursday.
On Friday, the Department of Labor’s March jobs report showed a 916,000 non-farm payroll gain. Economists had expected to see non-farm payroll increase by 625,000.
Technology stocks propelled Nasdaq to a 43.6% gain in 2020, its fifth best year ever. The S&P 500 was up 16.3% and the Dow was up 7.2% last year. After a strong start to the year, the market is recovering from a minor correction. Read The Big Picture for a detailed daily market analysis.
The Covid-19 pandemic has clouded the US economy as national blockages pass the one-year mark. But many states are easing restrictions and there are signs of hope as vaccinations are launched and cases are starting to stabilize in some states.
Overview of the US stock market today |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain / Loss | % Change |
| Dow Jones | (0DJIA) | 33559.34 | +406.13 | +1.23 |
| S&P 500 | (0S and P5) | 4077.51 | +57.64 | +1.43 |
| Nasdaq | (0NDQC) | 13659.81 | +179.70 | +1.33 |
| Russell 2000 | (IWM) | 224.01 | +0.27 | +0.12 |
| IBD 50 | (FFTY) | 44.62 | +0.01 | +0.02 |
Last update: 12h00 ET 05/04/2021 |
||||
Cumulative cases of Covid-19 worldwide reached 132 million, with almost 2.9 million deaths, according to the Worldometer. In the United States, cases are approaching 31.4 million and 569,000 deaths, although the number of new cases in the United States has declined dramatically.
Dow winners and losers
Walgreens Boots Alliance (WBA), Microsoft (MSFT) and Walmart (WMT) rose about 3% each in the Dow blue chip index.
Microsoft rose 2.7% in twice-normal trade to exceed a 246.23 point-of-purchase point on a flat base, according to analysis by the MarketSmith chart. It remains in a purchase range that goes up to 258.54. The basis is the second stage, which means that Microsoft’s shares may still have room to run. Inventories tend to make the biggest advance from these bases at an early stage.
A relative strength rating of 42, however, means that 55% of all other stocks are outperforming the software giant. Its relative strength line is also lagging behind. Microsoft is an IBD Leaderboard and IBD Long-Term Leader stock.
Walgreens, up 3.3%, is in the buying range of an alternative entry of 56.22. The shares rose 3.6% on Thursday after the drugstore chain released a second-quarter tax profit that surpassed Wall Street forecasts.
Among other Dow winners, Boeing (BA) and Intel (INTC) earned more than 2% each.
Only three blue chips were smaller, but less than 0.5% each: Disney (DIS), Chevron (CVX) and Goldman Sachs (GS).
Outside the Dow
Manufacturers of automobiles, software, internet content and drugstore stocks led the lead among IBD’s 197 industrial groups. But inventories of solar energy, oil and gas have declined.
In the Internet content group, Alphabet (GOOGL) jumped 3.4%, releasing a point of purchase of 2,145.24 from a flat base in heavy trade. On a weekly chart, it also surpassed a tight three-week pattern with the same point of purchase. The shares remain in the purchase range, which reaches 2,252.50.
On Monday, the US Supreme Court ruled in favor of Alphabet in a copyright dispute with Oracle (ORCL) involving Android software. The court ruled 6 to 2 in favor of Google. Alphabet is a Leaderboard stock.
Tesla (TSLA) crossed almost 5% more in fast turn as it approaches to resume its 50-day moving average. You may be building a new base, but it is too early to identify a point of purchase.
The electric car giant reported first quarter deliveries of 184,000, easily exceeding views. Deliveries increased 109% over the previous year and 2.3% in the fourth quarter, defying forecasts for a sequential decline. Analysts, on average, predicted 168,000, according to FactSet.
Tesla’s Q1 deliveries consisted exclusively of Model 3 and Model Y, although its total output of 180,338 included 2,020 Model S sedans and Model X SUVs.
Garmin Breaks Out
Garmin (GRMN) rose 2.5% to exceed a purchase point of 133.53 for a first stage flat base. The volume was about 33% higher than normal. The strongest disruptions tend to occur in trade at least 40% above normal. The shares are in the purchase range of up to 140.21.
The manufacturer of the fitness watch and GPS device has a composite rating of 97, which provides investors with a quick way to assess the main growth characteristics of a stock. This puts Garmin at the top of the consumer electronics group with 14 shares.
The Innovator IBD 50 ETF (FFTY) rose slightly, led by Tesla, Southern Copper (SCCO) and Sibanye Stillwater (SBSW). But 360 DigiTech (QFIN), At home (ATHM) and Wayfair (W) heavy.
Follow Nancy Gondo on Twitter at @IBD_NGondo
YOU MIGHT LIKE:
Interesting stocks to buy or watch while Covid cases are easier
Find today’s best growth stocks to watch with IBD 50
Learn how to time the market with IBD’s ETF market strategy
See the stocks on the list of market leaders with the IBD leaderboard