Dow Jones Rallies On Coronavirus Vaccine, Stimulus News; Apple Hits Buy Point On iPhone Plans

Dow Jones Rallies On Coronavirus Vaccine, Stimulus News; Apple Hits Buy Point On iPhone Plans


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The Dow Jones Industrial Average rallied more 200 points Tuesday, as Moderna coronavirus vaccine news and stimulus optimism propelled stocks higher. Apple stock hit a new buy point on plans to boost iPhone production, while Tesla reversed sharply lower. Chip giant AMD advanced to new highs, while hot IPO stock Snowflake plunged before cutting losses.



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Among the Dow Jones leaders, Apple (AAPL) jumped 3%, while Microsoft (MSFT) moved down 0.5% in today’s stock market.

Tesla (TSLA) reversed from early gains to fall 1.5%. Advanced Micro Devices (AMD) hit an all-time high with a 2% rise. Hot IPO stock Snowflake (SNOW) plunged over 7% before cutting losses.

Stocks in or near buy zones in the stock market rally are Advanced Micro Devices, Chipotle Mexican Grill (CMG) and Innovative Industrial Properties (IIPR).

Apple, Chipotle, Microsoft and Tesla are IBD Leaderboard stocks. AMD and Innovative Industrial were featured in this week’s Stocks Near A Buy Zone.

Dow Jones Today: Moderna Coronavirus Vaccine

On Tuesday, the Dow Jones Industrial Average rallied 0.7%, while the S&P 500 was up 0.7%. The tech-heavy Nasdaq composite advanced 0.6% in midday trade after cutting gains.

FDA staff supported the emergency approval of the Moderna coronavirus vaccine in documents released Tuesday morning. An FDA advisory panel will review the Moderna coronavirus vaccine on Thursday.

Moderna (MRNA) stock reversed 2% lower and is about 13% off its 52-week high.

Among exchange traded funds, Innovator IBD 50 (FFTY) gained 1.2% Tuesday. The Nasdaq 100-linked Invesco QQQ Trust ETF (QQQ) was up 0.7%. Meanwhile, the SPDR S&P 500 ETF (SPY) rose 0.6%.

Amid the coronavirus stock market rally, the tech-heavy Nasdaq is up 38.6% for the year through Monday’s close. The S&P 500 is up 12.9%, while the DJIA is up 4.6% year to date, through the Dec. 14 close.

Stimulus Update

Late Monday, a bipartisan group of senators revised their stimulus deal proposal by breaking it in two bills. One bill would have $748 billion for generally popular ideas, including $300 a week in jobless benefits and another $300 billion for business loans.

Another $160 billion bill would include the divisive issues of business liability protection and money for state and local governments.

Coronavirus Updates

According to the Worldometer data tracker, the cumulative number of confirmed coronavirus cases in the U.S. topped 16.9 million on Tuesday. Total virus-related deaths rose past 308,000.

The cumulative total of worldwide Covid-19 cases confirmed since the start of the outbreak topped 73.3 million Tuesday, with more than 1.63 million virus-related deaths.

Coronavirus Stock Market Rally

November was a key month for the stock market, after IBD’s The Big Picture flagged a new uptrend following the market’s bullish follow-through day on Nov. 4. Meanwhile, December sees the stock market near record highs, although the S&P 500’s slip on Monday raised its distribution day count to five.

Monday’s Big Picture commented, “With that many distribution days, you can start making a case that the market trend is turning bearish. But that doesn’t tell the whole story. The Nasdaq is still pretty clean of distribution, and most top-rated stocks continue to act well. Among those that have broken out of bases the past several weeks, nearly all remain above buy points.”

Investors should continue to use the stock market’s strength to buy breakouts. Be patient and wait for powerful breakouts instead of chasing extended stocks. If the new breakouts work, then add more exposure. But if breakouts start to fail, then 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: IBD Long-Term Leaders

Stocks to watch include IBD Long-Term Leaders, companies with stable earnings growth and price performance. Nice (NICE) and Intuit (INTU) are the two most recent additions to the list on Dec. 4.

Nice is finding support around it 10-week moving average line and is just above a 238.45 buy point in a flat base. Meanwhile, a new flat base offers a new buy point at 255.58. Intuit is in the 5% buy zone above a 354.08 buy point in a cup with handle.


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Dow Jones Stocks: Apple Hits New Buy Point

Apple is breaking out above another aggressive entry at 125.49, while it holds above an early buy point at 122.09. Shares rallied 3% early Tuesday after Nikkei reported that Apple plans to make up to 96 million iPhones in the first half of 2021, a 30% year-over-year increase.

The conventional buy point, for now, is 138.08, according to MarketSmith chart analysis.

The blue-chip giant is the No. 1-performing Dow Jones stock for 2020, with a 65.9% advance through Monday.

Stocks In Or Near Buy Zones: AMD, Chipotle, Innovative Industrial

AMD rallied 2% Tuesday morning to hit a new high. Shares are extended past an 88.82 buy point in a double bottom.

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.

IBD Leaderboard stock Chipotle is trading just below a 1,366.76 buy point in a double bottom, according to MarketSmith chart analysis. Shares rallied 1% Tuesday morning.

Marijuana leader Innovative Industrial Properties surged past a 165.09 buy point in a three-weeks-tight formation with a 4.7% gain Monday. The 5% buy zone goes up to 173.34. Shares rallied another 2.8% Tuesday morning.

The stock ranks No. 40 on the IBD 50 and is also an IBD Leaderboard member.

Hot IPO Snowflake Plunges

Hot IPO stock Snowflake briefly plunged more than 7% Tuesday morning before cutting losses to about 1%, on pace to extend a losing streak to three sessions.

The stock is close to giving up the entirety of a 43% advance from a 301.10 buy point in a cup with handle. This would trigger a round-trip sell signal.


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Tesla Stock

IBD Leaderboard stock Tesla reversed 1.5% lower early Tuesday, as the stock continues to approach record highs. The company will be added to the S&P 500 index on Dec. 21.

On Nov. 18, shares broke out above a 466 buy point in an awkward cup with handle and are about 30% from the buy point. Last week, shares of the electric-auto giant hit an all-time high at 654.32.

Dow Jones Leaders: Microsoft

Among the top Dow Jones stocks, software giant Microsoft moved down 0.5% Tuesday. Shares are trying to move back above their 50-day line.

Year to date, Microsoft is one of the top Dow Jones stocks, advancing 65.8% through the Dec. 14 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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