Dow Jones Dips and Nasdaq Bounce While Technology Shares Bounce; House to vote on stimulus law

The main market indices were mixed at midday on Friday, with the Nasdaq rebounding, but the Dow Jones Industrial Average reduced losses.

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The Nasdaq rose 1.1%, the S&P 500 rose 0.2% and the Dow Jones industrials lost 0.9% on the stock market today. Small caps monitored by the Russell 2000 gained 1.2%. The volume was higher on both major exchanges compared to the same time on Thursday.

House legislators are expected to approve a $ 1.9 trillion stimulus bill today, which includes $ 1,400 direct checks for most Americans. Then it goes to the Senate. But the final legislation is unlikely to include a controversial increase in the minimum wage to $ 15 an hour. The current supplementary unemployment benefits are expected to expire in mid-March.

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. Read The Big Picture for a detailed daily market analysis.

Covid-19 Update

The Covid-19 pandemic continues to cloud the US economy as national blockages approach the one-year mark. But there are signs of hope as vaccinations are launched and cases begin to stabilize in some states.

Cumulative cases of Covid-19 worldwide are approaching 114 million, with more than 2.5 million deaths, according to the Worldometer. In the United States, cases have reached 29 million, with almost 521,000 deaths, although the number of new cases in the United States has declined dramatically in recent weeks.

As the world runs to administer vaccines, Modern (MRNA) rose 4% to extend Thursday’s advance. On Thursday, biotechnology reported sales that more than doubled analysts’ forecasts. He also offered a 2021 year-round revenue guidance well above views. Moderna’s shares are testing support at their 10-week moving average after falling below a 178.60 cup base purchase point.

But Johnson & Johnson (JNJ) gave up 2% in large volume to test his 50-day line. An FDA panel is meeting today before voting on whether to recommend the health giant’s coronavirus vaccine. If the FDA finally gives the go-ahead, the J&J vaccine will become the third vaccine available in the U.S.

J&J shares remain in the potential buy range of a 157.10 point purchase on a flat base. The purchase zone reaches 164.96. But all purchases are more risky now, with the upward trend in the market under pressure.

Dow losers and winners

Salesforce.com (CRM) sank nearly 5% in heavy trade to lower its 50-day moving average and is testing its 200-day line. The stock is working on a 21-week consolidation with a buying point of 271.02, according to analysis by the MarketSmith chart. It is about 19% below the entrance.

Earlier on Friday, the enterprise software maker released fourth-quarter earnings that exceeded Wall Street’s targets. But its profit outlook for fiscal 2022 and the free cash flow orientation disappointed. Salesforce must complete the acquisition of Slack Technologies (LABOR) in the 2nd quarter of the current fiscal year.

Among other first-rate losers, Chevron (CVX), Dow Inc. (DOW) and Procter & Gamble (PG) fell by more than 2% each.

But Microsoft (MSFT) and Apple (AAPL) earned about 2% each. UnitedHealthUNH and IntelINTC increased by 1.7% and 0.9%, respectively.

Apple is on track to break a four-day losing streak after falling below its 50-day line last week. Now it’s about 15% off. Microsoft is trading near a 232.96 point purchase point for superficial consolidation, while testing its 10-week moving average.

Outside the Dow

Electronic product retailers, travel agencies and solar energy stocks led the advantage among IBD’s 197 industrial groups. But gold, oil and gas miners and steel stocks were left behind.

GameStop (GME) jumped more than 30% on Friday, before drastically reverting to a 16% loss. Video game retailer shares have risen more than 120% this week as Reddit / WallStreetBets traders appear to be back in the game. GME’s stock soared 400% during the last week of January amid a short-squeeze wave.

“We have been encouraged by our continued resilience and recovery and we are optimistic about the recovery from oncoming travel,” Airbnb said in its earnings report. “However, we continue to have limited visibility for growth trends in 2021, given the difficulty in determining the pace of vaccine distribution and the related impact on the desire to travel.”

Follow Nancy Gondo on Twitter at @IBD_NGondo

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