The Dow Jones Industrial Average entered positive territory after falling more than 200 points on Monday morning, with the recovery of Disney and the fall of Microsoft.
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The Nasdaq fell 1.6%, the S&P 500 fell 0.5% and the Dow Jones industrials rose 0.1% in the stock market today. The small caps tracked by the Russell 2000 were almost flat. The volume was slightly higher in the two main exchanges compared to the same time on Friday.
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.
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.
Overview of the US stock market today |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain / Loss | % Change |
| Dow Jones | (0DJIA) | 31510.44 | +16.12 | +0.05 |
| S&P 500 | (0S and P5) | 3885.60 | -21.11 | -0.54 |
| Nasdaq | (0NDQC) | 13646.99 | -227.47 | -1.64 |
| Russell 2000 | (IWM) | 225.52 | +0.33 | +0.15 |
| IBD 50 | (FFTY) | 47.92 | -0.98 | -2.00 |
Last updated: 11h58 ET 02/22/2021 |
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Cumulative cases of Covid-19 worldwide reached 112 million, with nearly 2.5 million deaths, according to the Worldometer. In the United States, cases now approach 28.8 million, with more than 511,000 deaths.
Dow winners and losers
Disney (DIS) rose more than 4% in heavy trade, towards a new closing high. Disney shares remain in the potential buy range of 183.50 purchase points on a fixed five-week basis, according to analysis by the MarketSmith chart. The purchase zone reaches 192.68.
Dow Inc. (DOW) gained almost 3% to exceed a 61.41 point purchase on a six-week cup base. The volume was about 35% above normal.
Chevron (CVX) rose 3% to an eight-month high in twice-normal trade. Other first-rate winners included American Express (AXP) and Caterpillar (CAT), more than 2% each.
On the negative side, Apple (AAPL), Intel (INTC), Nike (NKE) and Microsoft (MSFT) fell by more than 2% each.
Apple’s shares are below their 10-week moving average after breaking through the support level last week. But a strong recovery above the level would be optimistic for the outlook for the stock. The action triggered the 7% -8% loss-of-sale rule on February 18, as it fell more than 7% below a 138.89 buying point for a cup with a handle.
Microsoft is maintaining above its 10-week line and a 232.96 point of purchase. It remains in the potential buy range, which rises to 244.61.
Outside the Dow
Solar, automakers, software and other computer-related stocks led the handicap among IBD’s 197 industrial groups. But oil and gas stocks, airlines and hotels outperformed.
In the automaker group, Tesla (TSLA) slipped more than 4% in volume above the average for a third direct decline. On Sunday, the electric vehicle manufacturer removed the Model Y Standard Range Plus from its website.
Tesla’s shares are breaking support on its 50-day line for the first time since mid-November. It is now about 17% off its biggest 52-week high, although it remains strongly extended from a 466 point purchase of a cup with handle.
The travel stock has recently recovered, as coronavirus cases decline and vaccines are distributed. This increases the hope that people will be able to travel again, once the pandemic is more in control.
Travel stocks explode
Aerial Leasing (AL) rose 4% to exceed a 46.14 point of purchase of a flat base. The shares remain in the potential buy range, which rises to 48.45.
Marriott Vacations Worldwide (VAC) advanced 3%, releasing a point of purchase of 157.77 from a second stage flat base in the triple normal trade. It is still in the shopping zone, which reaches 165.66.
Other travel-related actions that broke out on Monday include cruise ship operator Carnival (CUK), up to 8% in heavy volume. The shares are now extended from a point of purchase of 21.01 to a canopy base and close to a maximum of one year. Airline stocks also outperformed, helped by positive comments from Deutsche Bank. The IBD airline group grew by more than 4%.
Las Vegas Sands (LVS), with a 3% increase in busy trade, broke out after an entry of 60.98 from a 14-week consolidation. The volume was twice as heavy as normal.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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