The Dow Jones Industrial Average briefly rebounded more than 100 points early Wednesday morning amid mounting tensions between the United States and China after the United States ordered the closure of the Chinese Chinese consulate in Houston. Dow Jones shares Pfizer soared in a coronavirus vaccine deal, while Microsoft and Tesla will report gains after the stock market closes.
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First class actions Apple (AAPL) and Microsoft (MSFT) were mixed in the stock market today. Dow Jones Shares Pfizer (PFE) was up 4% in the news about the coronavirus vaccine. The shares in the purchase zones are shares in the IBD classification table Lululemon (LULU) and Cabbage farmers market (SFM).
Among the companies reporting earnings, Intuitive surgical (ISRG) jumped 3.5%, while Snap (SNAP) fell 8%. In the meantime, Tesla (TSLA) will report after the close of the stock market.
Dow Jones Today: Tension between the United States and China
Dow Jones industrialists reversed their initial losses to rise 0.25% early Wednesday, while the S&P 500 rose 0.3%. The technology-heavy Nasdaq compound rose higher.
The United States Department of State ordered China to close its Houston consulate. State Department spokesman Morgan Ortagus said the order was issued “to protect American intellectual property and the private information of Americans.” China has threatened to retaliate.
Among exchange-traded funds, Innovator IBD 50 (FFTY) gained 1% on Wednesday noon. The fastest growing ETF is roughly 2% off its 52-week high. The Invesco QQQ Trust (QQQ) ETF linked to the Nasdaq 100 was up 0.1%. Meanwhile, the SPDR S&P 500 ETF (SPY) recovered 0.25%.
Within the recovery of the coronavirus stock market, Nasdaq, technological and heavy, has risen 19% during the year to the close of Tuesday. Meanwhile, the S&P 500 is up 0.8%, while the DJIA is down 6% to date, as of the close of July 21.
Coronavirus news
The coronavirus outbreak continues to spread throughout the US According to the Worldometer data tracker, the cumulative number of confirmed cases in the US exceeded 4 million on Wednesday. On Friday, new daily cases hit another record of more than 74,000. However, while new daily cases continue to rise, there has yet to be a corresponding increase in the number of daily deaths, a key measure to monitor.
The cumulative total of confirmed Covid-19 cases since the start of the outbreak worldwide exceeded 15.1 million on Wednesday, with more than 620,000 deaths related to the virus.
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Coronavirus Stock Market Rally
According to IBD’s The Big Picture, the rally in the coronavirus stock market remains on an uptrend after recovering from the lows about four months ago on March 23. Major stock indices confirmed the rebound as a new uptrend on April 2.
According to The Big Picture on Tuesday, “The S&P 500 saw an increase of 0.8% dissolve into just 0.2%. The close at the bottom of the day’s price range, combined with higher volume, gave the S&P a new day of Distribution. This was a stalemate day, when sellers struggled for buyer control at closing, even if the index closed higher. But for the second day in a row, the S&P 500 closed above the June high at 3233. “
Stocks to watch for include the top stocks of IBD’s long-term leaders, who focus on companies with stable earnings growth and price performance.
Stock market ETF strategy and how to invest in the current uptrend
Dow Jones News: Pfizer Coronavirus Vaccine Agreement
Drug giant Dow Jones, Pfizer, rose 4% after the US government announced it will pay $ 1.95 billion for Pfizer to create and deliver 100 million doses of its coronavirus vaccine candidate in the US if it proves to be effective.
Pfizer stock is nearing a point of purchase of 39.32 on a cup basis.
Stock in or near purchase areas: Lululemon, Sprouts
In the recovery of the coronavirus stock market, two main stocks in or near the buying zones include Lululemon and Sprouts Farmers Market.
Retail leader Lululemon is in the buying range above a buy point of 324.86 on a flat basis after Monday’s breakout. Shares were up 0.5% early Wednesday.
The IBD inventory check shows that Lululemon has a rating of 90 out of the best composite rating of 99 out of IBD. Composite rating, an easy way to identify the fastest growing stocks, is a combination of fundamental metrics and key techniques to help investors assess a stock’s strengths.
Lululemon appeared in this week’s Stocks Near A Buy Zone column.
Outbreaks erupted beyond a 26.61 buy point in a double bottom with a handle, according to MarketSmith’s graphical analysis, up 7.1% on Tuesday and in the buy range. The 5% buy zone runs to 27.94. The shares lost 0.3% early Wednesday.
Sprouts is ranked 20th on the IBD 50 Stock Idea List and was Tuesday’s IBD Action of the Day.
The stock was added to the IBD classification service. According to Leaderboard’s comment, “Sprouts Farmers Market was added to Leaderboard on Tuesday after the stock broke from a double bottom base with a handle. The volume was heavy and the share price performed well. Sprouts is now a middle position. The organic food supermarket the chain becomes the twentieth stock in the leaderboard. “
Stock market earnings: intuitive, fast
Early Wednesday morning, Intuitive Surgical gained around 3.5% after reporting strong quarterly results. Intuitive reported adjusted earnings of $ 1.11 per share on $ 852 million in sales.
On July 5, ISRG shares exploded past a buy point of 601.31 in a cup with a handle and quickly spread. The shares are approximately 13% higher than the entry.
Snap, the leader of social media and Snapchat parents, fell 9%, despite reporting better-than-expected earnings and sales. Snap reported a loss of 9 cents on sales of $ 454 million.
Instant stock ended 33% Tuesday above a buy point of 18.56 in a cup with a handle. Investors must take at least some profit when the stock rises 20% -25% from a suitable buy point.
Tesla Earnings
Tesla shares rose 1% early Wednesday ahead of the company’s earnings results after the close. Analysts expect a loss of 49 cents a share, down from a loss per share of $ 1.12 in the prior-year quarter. The revenue estimate is $ 4.96 billion, 22% less.
On July 13, Tesla shares advanced as much as 106% beyond a purchase point of 869.92 in a cup with a handle.
Dow Jones Leaders: Microsoft Earnings
Among Dow Jones’ main stocks, Apple rose 0.2% early Wednesday. The shares are only 3% of new highs after they hit a record high of 399.82 on July 13.
Stocks are above the 20% -25% profit-taking zone from the 288.35-cup-with-handle purchase point. Bullish, the stock’s RS line is near new highs, signaling strong performance in the stock market. The RS line measures the performance of a share price against the general market.
Software leader Microsoft gained 1.2% on Wednesday morning. Shares are just 2% from all-time highs before the company’s results after closing. Analysts expect EPS to rise 0.7% to $ 1.38, as sales grow 8.5% to $ 36.59 billion.
The blue giant is the best-performing Dow Jones stock in 2020, up 32.4% through Tuesday’s close. It is also a common idea of the IBD leaderboard and a long-term leader of IBD.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on growth stocks and the Dow Jones Industrial Average.
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