The main market indices reversed upward at midday on Wednesday, with the Dow Jones Industrial Average ranging from a loss of 100 points to a gain of 300 points.
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The Dow Jones industrials rose 0.7%, the S&P 500 rose 0.6% and the Nasdaq rose 0.3% in the stock market today. The small capitalizations monitored by Russell 2000, with an increase of 1.9%, outperformed. The volume was lower on both major exchanges compared to the same time on Tuesday.
The stock rose with Federal Reserve Chairman Jerome Powell, reiterating his comments on Tuesday that inflation and employment remain well below the central bank’s targets. This means that the Fed is likely to continue to buy bonds to boost the US economy.
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 start to drop in some states.
Overview of the US stock market today |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain / Loss | % Change |
| Dow Jones | (0DJIA) | 31,799.61 | +262.26 | +0.83 |
| S&P 500 | (0S and P5) | 3906.61 | +25.24 | +0.65 |
| Nasdaq | (0NDQC) | 13515.25 | +50.05 | +0.37 |
| Russell 2000 | (IWM) | 226.53 | +4.77 | +2.15 |
| IBD 50 | (FFTY) | 46.52 | -0.01 | -0.02 |
Last updated: 12h02 ET 24/02/2021 |
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Cumulative Covid-19 cases worldwide reached 112.8 million, with nearly 2.5 million deaths, according to the Worldometer. In the United States, cases are now approaching 29 million, with more than 515,000 deaths, although the number of new cases in the United States has declined dramatically in recent weeks.
As countries rush to administer Covid-19 vaccines, Johnson & Johnson (JNJ) rose 1.3%, at a pace to contain the three-day drop. The shares found support in their 50-day moving average on Tuesday and are back in the buying range from 155.57 flat-base purchase points. The purchase range rises to 163.35.
An FDA advisory panel will meet on Friday to evaluate the vaccine and send a recommendation to the Food and Drug Administration. J&J said the FDA concluded that its vaccine is 66% effective in protecting against Covid-19 infections and 88% effective in preventing severe cases.
Dow winners and losers
Boeing (BA), with a 5% increase in fast turnover, led the Dow. The shares are building the right side of a 12-week consolidation, according to analysis by the MarketSmith chart. Boeing’s shares are about 9% from a 244.18 point of purchase. But a Composite Rating 4 and a Earnings Per Share Rating are quite weak.
The Federal Aviation Administration is demanding engine inspections before Boeing 777 jets equipped with a particular Pratt & Whitney engine can fly again. On Saturday, a Boeing 777 and 747 suffered fires with engines in the air, sending debris to the ground.
Among other blue chip winners, Caterpillar (CAT), Dow Inc. (DOW), Chevron (CVX) and Goldman Sachs (GS) earned more than 2% each.
Disney (DIS) added 1.5% in heavy volume to a new high, en route to extending its winning streak to four. Disney’s inventory is extended from an 183.50 point of purchase to a flat base. The buying zone peaked at 192.68.
But Home Depot (HD) fell more than 4% in heavy trade. On Tuesday, the shares lost 3%, although the reform retailer reported better-than-expected results in the fourth quarter before the market opened. It did not provide a perspective.
Home Depot’s stock has been working on a flat basis with a buying point of 293.05, although it has now given up on its 200-day moving average line.
Outside the Dow
Oil and gas stocks, automakers and airlines led the rise among IBD’s 197 industrial groups. But software, utilities and online retailers and others have been left behind.
Square (SQ) plunged 8% in heavy trade on Wednesday morning, before reducing its loss to 5%. The shares, on their way to a third consecutive fall, found support on the 50-day line. The point-of-sale payments company reported strong gains in the fourth quarter, but gross payment volume and revenue did not meet Wall Street goals. Square also released a new $ 170 million investment in Bitcoin.
Bitcoin rebounded 4% earlier on Wednesday, rising briefly above $ 51,000 before reducing earnings. Bitcoin’s price was traded around $ 49,600 in midday trade, according to CoinDesk. Bitcoin hit $ 58,332 on Sunday and fell below $ 45,000 on Tuesday, before recovering.
Bitcoin Trust (GBTC) rose 6% on Wednesday after two days of decline.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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