The Dow Jones Industrial Average hit sessions lows, falling over 250 points midday Friday before trimming losses ahead of President Trump’s news conference on China, as the current stock market rally continues. Dow Jones stock Cisco Systems rallied after acquisition news, while Twitter escalated its feud with President Trump.
Tech giants Apple (AAPL) and Microsoft (MSFT) rose 0.2% apiece in today’s stock market. Dow Jones stock Cisco Systems (CSCO) rallied 0.5% after acquiring software company ThousandEyes. Twitter (TWTR) dove more than 4% before trimming losses after escalating its feud with President Trump, while Facebook (FB) gained 0.2% in midday trade. Snap (SNAP) is breaking out above a new buy point. Costco (COST) and Salesforce (CRM) both fell sharply after earnings results late Thursday.
Dow Jones Today: Trump’s China News Conference
The Nasdaq composite turned up 0.2% Friday midday. At around 12 p.m. ET, the S&P 500 was down 0.35%, while the Dow Jones industrials traded down 0.7%.
On Friday, President Trump is expected to hold a press conference to discuss China. No specifics, including its time, have been released. Early Friday, Trump tweeted, “CHINA!”
On Thursday, China approved a controversial national security law for Hong Kong, setting the stage for a U.S.-China confrontation. Hours later, President Trump announced he would hold a news conference on Friday.
Among exchange traded funds, Innovator IBD 50 (FFTY) moved up 0.6%. The ETF of top growth stocks is about 14% off its 52-week high. Meanwhile, the Nasdaq 100-linked Invesco QQQ Trust ETF (QQQ) moved up 0.2%, and the SPDR S&P 500 (SPY) ETF fell 0.4%.
The tech-heavy Nasdaq is once again positive for 2020 after the coronavirus stock market crash, up 4.4% through Thursday’s close. Meanwhile, the S&P 500 and Dow Jones Industrial Average are down 6.2% and 11%, respectively, through May 28.
IBD Live: A New Tool For Daily Stock Market Analysis
Coronavirus News: U.S. Cases Nears 1.8 Million
The coronavirus outbreak continues to spread across the U.S. According to the Worldometer data tracker, the cumulative number of confirmed U.S. cases is approaching 1.8 million. Despite the rising total, the daily number of new cases is trending lower.
Confirmed Covid-19 cases worldwide climbed above 5.9 million, with about 362,000 virus-related deaths. With the daily number of new cases still on the decline, investors in the U.S. are turning attention to the economic impact of the coronavirus outbreak and how fast the country reopens for business.
Stock Market Rally
According to IBD’s The Big Picture, the stock market uptrend remains solid after hitting lows more than two months ago on March 23. The major stock indexes confirmed a new uptrend on April 2.
Per Thursday’s Big Picture, “All three major stock indexes hit monthly highs Thursday before reversing lower. The Nasdaq reached its highest level since Feb. 21 and is just 5% away from its previous all-time highs. Meanwhile, the S&P 500 is still holding above its 3000 price level but remains about 11% off its all-time highs.”
Stocks to watch include the top stocks on IBD Long-Term Leaders. The IBD Long-Term Leaders list focuses on companies with stable earnings growth and price performance.
Stock Market ETF Strategy And How To Invest In The Current Uptrend
Dow Jones News: Cisco Systems
Among the Dow Jones stocks, Cisco Systems moved up 0.5% after the company acquired ThousandEyes for nearly $1 billion. ThousandEyes helps companies monitor network outages.
Cisco Systems stock moved further above its long-term 200-day line after recapturing that level on Wednesday. Cisco Systems was one the top-performing stocks on the Dow Jones Industrial Average in morning trade Friday.
Twitter-Trump Feud Escalates
On Thursday night, Twitter flagged a tweet from President Trump for “glorifying violence.” According to the company, “We’ve taken action in the interest of preventing others from being inspired to commit violent acts, but have kept the Tweet on Twitter because it is important that the public still be able to see the Tweet given its relevance to ongoing matters of public importance.”
Friday’s action is the latest exchange in the ongoing confrontation between Twitter and the president. On Thursday, Trump signed an executive order on online platforms. The order urges tightened oversight on social media companies, which currently police their own content without fear of lawsuits related to comments, videos and other content posted by users on their platforms.
Twitter stock fell more than 4% before trimming losses, on pace to extend a losing streak to three sessions. Shares fell further below their long-term 200-day line after retaking the level on Tuesday.
Meanwhile, Facebook moved up 0.2% in morning trade. Facebook stock is still holding above a 215.38 buy point in a cup with handle after a breakout on May 19.
The social media giant is an IBD Leaderboard stock. According to Leaderboard commentary, “A gap-up in heavy volume in late April on Q1 results added a bullish tint to its new base. Notice how the RS line hit new highs ahead of the breakout.”
Breakout Stocks To Watch: Snap
Social media stock Snap is breaking out above an 18.56 buy point in a cup with handle, according to MarketSmith chart analysis. Snap stock rallied 3% early Friday and is right at the buy point. Snap was featured in this week’s Stocks Near A Buy Zone column.
According to the IBD Stock Checkup, Snap stock has a 92 out of a highest-possible 99 IBD Composite Rating, placing it in the top echelon of growth stocks. The Composite Rating is a blend of key fundamental and technical metrics to help investors easily gauge a stock’s strengths.
Stock Market News: Costco, Salesforce
Costco reported weaker-than-expected fiscal Q3 earnings and sales results late Thursday. Shares slid 1.2% in morning trade.
Costco is approaching a 322.73 buy point in a cup with handle after finding support near its 50- and 200-day moving average lines. A downside is the stock’s lagging RS line.
Software leader Salesforce declined 4.5% in the wake of light revenue and earnings guidance. The stock ended Thursday in the 5% buy zone past a 183.40 add-on entry in a new handle. Shares are extended from a previous cup-with-handle buy point at 164.41.
Dow Jones Leaders: Apple, Microsoft
Among the top Dow Jones stocks, Apple is again trying to decisively clear a handle’s 319.79 buy point, which offers an add-on entry. Shares moved up 0.2% in morning trade. The entry is an opportunity for investors to add to their positions amid the breakout move past a cup-with-handle’s 288.35 buy point, according to MarketSmith chart analysis.
Shares are just 3% off their all-time highs, nearly completing a remarkable recovery from the coronavirus stock market crash.
Apple stock has a 92 out of a highest-possible 99 IBD Composite Rating.
Tech giant Microsoft moved up 0.2% Friday morning. The software leader is approaching a new 187.61 buy point amid a slow-going breakout move above a cup-with-handle’s 180.10 buy point.
Microsoft is also an IBD Leaderboard stock idea and an IBD Long-Term Leader.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
YOU MAY ALSO LIKE:
Top Growth Stocks To Buy And Watch
IBD’s ETF Stock Market Strategy
IBD’s Long-Term Leaders
Coronavirus Dow Jones Crash Survival Guide
Looking For The Next Big Stock Market Winners? Start With These 3 Steps