Stocks held close to session lows as the Dow Jones Industrial Average fell more than 600 points at noon as all 30 components were in the red.
X
Around 1 pm in New York, Dow Jones industrials sank 2.5%, the S&P 500 lost 2.1%, and the Nasdaq also lost 2.1% in the stock market today. Small caps followed by the Russell 2000 slipped 2%. Volume was mixed, lower on the NYSE but higher on the Nasdaq, compared to the same time on Thursday.
For the week, the Dow is on track for a 2.6% loss. The S&P 500 faces a weekly decline of 2.2% and the Nasdaq, a decrease of 0.9%.
A recent resurgence in tech stocks pushed Nasdaq, which has a lot of tech, to an annual gain of 11.6% through Thursday’s close, while the S&P 500 was down 4.6% and the Dow was down a 9.8%.
Summary of the US Stock Market Today |
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|---|---|---|---|---|
| Index | Symbol | Price | gain loss | % Change |
| Dow Jones | (0DJIA) | 25174.00 | -571.60 | -2.22 |
| S and P500 | (0S and P5) | 3,029.00 | -54.76 | -1.78 |
| Nasdaq | (0NDQC) | 9848.80 | -168.20 | -1.68 |
| Russell 2000 | (IWM) | 137.76 | -2.69 | -1.92 |
| IBD 50 | (FFTY) | 33.89 | -0.51 | -1.48 |
Last Updated: 12:36 PM ET 06/26/2020 |
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While the stock market has been on a confirmed bullish trend since the April 2 follow-up day for the S&P 500, it has struggled as it fears a second surge in the Covid-19 wave. (Read The Big Picture for a detailed analysis of daily market action.)
Covid-19 update
According to the Worldometer, global coronavirus cases are close to 9.8 million, with almost 493,000 deaths. In the United States, confirmed cases now exceed 2.5 million, with a death toll close to 127,000.
As the U.S. economy reopens, several states are experiencing record levels of new Covid-19 cases and hospitalizations as the number of cases increases. Texas, one of the states hardest hit with new spikes in cases, said Thursday it will stop its reopening.
Fed Hits Bank Stocks
Banks were among the biggest losers of the day, after the Federal Reserve announced new restrictions on the repurchase of shares and dividends on Thursday night.
The Dow was a red sea, led by a 7.4% drop in Goldman Sachs (GS) The stock is working on a handle cup with a buy point of 223.08, according to MarketSmith’s graphical analysis.
JPMorgan (JPM) lost 5% to fall below its 50-day line. Shares are more than 30% off their 52-week maximum.
Nike (NKE) stumbled upon 6.7% in fast trade. After Thursday’s close, the sports footwear giant reported results for the fiscal fourth quarter that saw no views on both the top and bottom lines. Nike shares are 8% away from a 104.79 point of purchase for a cup with a handle as it remains above its 50-day line.
Among other blue chips, Disney (DIS) fell more than 2%. Earlier this week, the media giant said it expects delays in reopening plans for its theme parks in the United States. Workers in Florida have signed a petition seeking a delay as coronavirus cases increase in the state surge.
Disney shares fell below their 50-day line on Wednesday, for the first time in nearly six weeks. Now you have a 28% discount on your maximum of 52 weeks.
Microsoft again in the purchase zone
Apple (AAPL) and Microsoft (MSFT) also yielded more than 2% each. Shares of Apple remain near their all-time high on Tuesday and range well from an additional buy point of 319.79 for an identifier.
Stock in the leaderboard is also above the 20% -25% profit-taking zone from a buy point of 288.35 from a previous cup with a handle. Apple’s relative line of strength, which compares a stock’s performance to the S&P 500, is in new territory. That is a bullish signal.
Stock Leaderboard Microsoft has returned to the buy range from a correct entry of 187.61 a cup with a handle. The buy zone peaks at 197. The software giant’s RS line is also at a new high. Microsoft is a long-term leader of IBD.
Banks, airlines and oil stocks led the drop among the 197 industry groups tracked by IBD.
Facebook faces music
At IBD 50, Facebook (FB) dived 8.2% in high volume to test support on its 50-day line. Shares fell back into the buying range from a 224.30 entry.
The social media giant faces a boycott when Verizon (VZ) became one of the last big companies to join the “Stop Hate for Profit” movement, which hopes to pressure Facebook to adopt stricter rules against hateful content.
Palomar Holdings (PLMR), Zynex (ZYXI) Nvidia (NVDA) and Tradeweb markets (TW) were among other IBD 50 shares with a drop of more than 2% each.
The Innovator IBD 50 ETF (FFTY) fell 1.8% on the current stock market.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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