The Dow Jones Industrial Average rushed nearly 400 points higher despite paring gains earlier as coronavirus cases continue to surge in the U.S.
The Dow Jones industrials rallied 1.5%, the S&P 500 rose 0.7% and the Nasdaq reversed to a 0.4% gain in the stock market today. Small caps tracked by the Russell 2000 soared 2.9%. Volume was mixed, higher on the NYSE but lower on the Nasdaq, vs. the same time Friday.
A recent resurgence in tech stocks had lifted the tech-heavy Nasdaq to a 9% year-to-date gain through Friday’s close, while the S&P 500 was down 7% and the Dow off 12%. Small caps continue to lag with the Russell 2000 down 17%.
While the stock market has been in a confirmed uptrend since the April 2 follow-through day for the S&P 500, it’s had hiccups as fears of a second Covid-19 wave increase. (Read The Big Picture for a detailed analysis on daily market action.)
Worldwide coronavirus cases are approaching 10.3 million, with over 505,000 deaths, according to Worldometer. In the U.S., confirmed cases are now past 2.6 million, with the death toll surpassing 128,000.
U.S. Stock Market Today Overview
Last Update: 10:46 AM ET 6/29/2020
As the U.S. economy reopens, several states are experiencing record levels of new Covid-19 cases and hospitalizations as case counts rise. Texas, one of the hardest hit states with new case spikes, on Thursday said it will halt its reopening.
Texas and Florida have since reclosed bars. California on Sunday ordered seven counties, including Los Angeles, to close bars to help curb coronavirus spread.
Boeing Lifts Off
Boeing (BA) soared 8% in fast trade to lead the Dow Jones index, after receiving clearance Sunday from the Federal Aviation Administration to start certification test flights of its 737 Max jet. The jet maker will reportedly begin test flights today, as it aims to return to service soon. Boeing shares remain more than 50% off their 52-week high.
Among other blue chip winners, Caterpillar (CAT), Raytheon Technologies (RTX) and Dow Inc. (DOW) advanced about 2% each.
But big-cap techs were under pressure with Cisco (CSCO), Intel (INTC) and Microsoft (MSFT) down less than 1% apiece.
Microsoft stock has pulled back into buy range from a 187.61 buy point of a cup with handle. The buy zone tops out at 197. The software giant is an IBD Leaderboard and IBD Long-Term Leaders stock.
Software, internet retail and movie-related stocks led the downside among IBD’s 197 industry groups.
FANG stocks Facebook (FB), Amazon (AMZN) and Netflix (NFLX) gave up about 1% each.
Facebook Boycott Grows
Facebook dipped 0.8% Monday, after plunging 8% Friday as Unilever (UN) joined a growing number of companies that say they will stop advertising on Facebook and Instagram as the “Stop Hate for Profit” boycott picks up steam. Over the weekend PepsiCo (PEP) reportedly followed suit.
Facebook on Friday breached its 50-day moving average for the first time since mid-April. It triggered the round-trip sell rule after erasing a near 14% gain from the 215.38 buy point of a cup with handle.
In biotech news, Gilead Sciences (GILD) rose more than 2% in above-average trade after announcing pricing for its remdesivir drug to treat Covid-19. Gilead said it will cost $3,120 for a typical U.S. patient with commercial insurance and it will begin charging for the Covid-19 treatment in July.
The stock is trying to get back above its 50-day line, as a base with an 86.07 buy point continues to take shape.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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