The Dow Jones Industrial Average fell again in a volatile trading session on rising coronavirus fears early Thursday morning as the stock market recovery appeared to recover from Wednesday’s strong sell-off. Dow Jones Boeing and Disney shares fell in the morning trade.
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First-class shares Apple (AAPL) and Microsoft (MSFT) were mixed heavily in today’s stock market. Dow Jones Shares Disney (DIS) and Boeing (BA) were among the worst performers in the Dow 30. Disney delayed the reopening of Disneyland, while Boeing was downgraded. IBD Classification Table Actions Netflix (NFLX) and Vertex Pharmaceutical Products (VRTX) sought to resume their recent buying points on Thursday, while recent EII day stocks StoneCo (STNE) was traded under its new entry.
DJIA Today: jobless claims, easing of banking regulations
The Nasdaq compound fell 0.1% early Thursday as it appears to be recovering from the stock market sell-off on Wednesday. The S&P 500 fell 0.3%, while Dow Jones industrialists lost 0.3 after briefly turning positive on heavy losses.
Early Thursday morning, the Labor Department reported worse-than-expected unemployment claims at 1.48 million against the Econoday consensus estimate of 1.38 million. Notably, the number of people who received benefits fell below 20 million for the first time in two months.
During the morning trade, regulators said they would ease the banking restrictions of the so-called Volcker Rule. Dow Jones Bank JPMorgan (JPM) recovered 2.5% in the first operations.
Among exchange-traded funds, Innovator IBD 50 (FFTY) was up 0.3%. The fastest growing stock ETF is approximately 9% off its 52-week high. Meanwhile, the Invesco QQQ Trust (QQQ) ETF linked to the Nasdaq 100 fell 0.2%, and the SPDR S&P 500 (SPY) ETF fell 0.3%.
Within the recovery of the coronavirus stock market, Nasdaq, technological and heavy, has risen 10.4% during the year until the close of Wednesday. Meanwhile, the S&P 500 and DJIA fell 5.6% and 10.8%, to date, through the close of June 24.
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 2.45 million on Thursday. On Wednesday, new daily cases exceeded 38,000, just below the record for a day set April 24 at 39,072. Although new daily cases increase in the short term, the increase in deaths continues to decrease.
The cumulative total of confirmed Covid-19 cases since the start of the outbreak worldwide topped 9.5 million on Wednesday, with more than 485,000 virus-related deaths.
IBD Live: a new tool for daily stock market analysis
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 of more than three months ago on March 23. The major stock indices confirmed the rebound as a new uptrend on April 2.
According to The Big Picture on Wednesday, “The Nasdaq compound broke a streak of eight consecutive wins, dropping 2.2%. It gave up at the 10,000 level but stayed above its 10-day moving average. The Nasdaq avoided a day of distribution because the volume reached below Tuesday. “
Actions to watch include the main actions of IBD’s long-term leaders. IBD’s list of long-term Leaders 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: Disney, Boeing
Among Dow Jones shares, Disney fell 2.1% after the company said it will not reopen Disneyland on July 17, after California regulators said they could not provide reopening guidelines until July 4. Additionally, thousands of employees signed a petition asking the company to delay the reopens. Entertainment giant Dow Jones has not set a new opening date.
Disney stocks fell below their 50-day key support level in the morning trade. Shares are nearly 30% off their 52-week high.
Aircraft maker Boeing fell more than 3% before slashing losses to around 2% after Berenberg cut the value of the reserves to sell them. Berenberg analyst Andrew Gollan also lowered his price target to 150, citing short-term risks related to the coronavirus and an uncertain recovery in global air traffic.
Boeing’s actions appeared to extend a losing streak to three sessions on Thursday morning. Shares are more than 55% off their 52-week high.
Featured actions to watch: Netflix, Vertex, StoneCo
On Wednesday, FANG share leader Netflix gave up its buy point of 459.07 on a flat basis after Monday’s breakout. Early Thursday, shares rose 1% to regain entry.
Netflix is a member of the IBD leaderboard. According to the leaderboard comment, “Netflix is playing with a new buy point on a narrow flat base in active trading. It rose to a full position on Monday.”
IBD Stock Checkup shows that Netflix stocks have a 98 out of a highest possible 99 IBD composite rating, making it one of the fastest growing stocks in the stock market. 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.
Vertex Pharmaceuticals, a member of the leaderboard, is trading below a 295.65 entry after Wednesday’s breakout attempt. Shares rose 0.5% on Thursday morning.
A potential disadvantage is the lagging relative resistance of the stock. The RS line should hit a new high on the day of the break to indicate that the stock is a potential leader.
Tuesday’s IBD action of the day, StoneCo, gave up its buy point of 40.27 in a cup with a handle amid Wednesday’s 7.5% drop, according to MarketSmith chart analysis. Shares rose 2.6% early Thursday morning as it seeks to regain its recent point of purchase.
Warren Buffett is a prominent sponsor. His sign Berkshire Hathaway (BRKB) owns 14.17 million shares, representing 8% of all StoneCo shares.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones’ top stocks, Apple gained 0.2% early Thursday after stocks fell from new highs on Wednesday with a 1.8% decline.
Stocks are well extended beyond the 319.79 one-handle buy point, which offered additional entry. The entry was an opportunity for investors to increase their positions. Shares, meanwhile, are above the 20% -25% profit-taking zone from the 288.35-cup-a-handle purchase point.
Software leader Microsoft fell 0.3% on Thursday morning. Stocks are back in the buy range above the 187.61 buy point of a cup with a handle. The 5% buy range goes up to 197.
Bullish, the RS stock line is at new highs after a strong rally in the last trading sessions. The RS line measures the performance of a share price against the general market.
The blue giant is 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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