Dow Jones futures jumped more than 275 points amid rising coronavirus cases ahead of open Monday, as the current stock market pullback continues. S&P 500 futures and Nasdaq futures were also higher early Monday. Dow Jones shares Boeing shot up 7% on the Max jet news, while Facebook fell more than 3%.
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First-class shares Apple (AAPL) and Microsoft (MSFT) were highest in the stock market today before opening. Dow Jones Shares Boeing (BA) shot up in 737 Max jet news. Nike (NKE) rose 0.3% among Dow 30 shares after the sell-off on Friday. Stocks to watch on Monday include stocks from the IBD leaderboard Facebook (FB) and Netflix (NFLX)
DJIA Today: Emerging cases of coronavirus
Dow Jones futures gained 1.2% versus value just before the stock market opened on Monday, while S&P 500 futures recovered 0.9%. Nasdaq 100 futures advanced 0.45% vs. fair value.
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 2.6 million over the weekend. On Friday, new daily cases topped 47,000, setting a new one-day record. On Sunday, new daily cases increased more than 40,000 for the fourth consecutive day. However, while new daily cases continue to rise, there has been no 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 topped 10 million over the weekend, with more than 500,000 virus-related deaths.
Summary of the US Stock Market Today |
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|---|---|---|---|---|
| Index | Symbol | Price | gain loss | % Change |
| Dow Jones | (0DJIA) | 25115.05 | -630.55 | -2.45 |
| S and P500 | (0S and P5) | 3020.86 | -62.90 | -2.04 |
| Nasdaq | (0NDQC) | 9815.60 | -201.40 | -2.01 |
| Russell 2000 | (IWM) | 137.67 | -2.78 | -1.98 |
| IBD 50 | (FFTY) | 33.72 | -0.68 | -1.98 |
Last Updated: 5:30 PM ET 06/26/2020 |
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Within the recovery of the coronavirus stock market, the Nasdaq heavy-duty technology was up 8.7% during the year through Friday’s close. Meanwhile, the S&P 500 and DJIA fell 6.9% and 12.3%, to date, through the close of June 25.
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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 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 Friday, “A series of new cases of coronavirus in the southern and southwestern states dominated the news headlines last week. And the stock market crash on Friday reaffirmed that the world’s number 1 economy it barely shows immunity to most powerful viruses in decades. “
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: Boeing, Nike
Boeing’s actions appeared to break a four-day losing streak early Monday morning. Shares shot up 7% before the opening. On Sunday, Boeing received FAA clearance to begin test flights of its 737 Max jet. Test flights could start as soon as Monday.
Stocks are 55% off at their 52-week high after a three-week losing streak.
Dow Jones retail leader Nike was modestly higher before the stock market opened on Monday, in focus after losses on Friday. Shares fell 7.6% on Friday, ending the session just below the 50-day moving average line, after the company posted a surprise loss in the quarter. Sales also missed analyst targets.
Nike shares are still forming a cup with a handle with a buy point of 104.79, according to MarketSmith’s graphical analysis.
Actions to watch: Facebook, Netflix
On Friday, Facebook shares fell 8.3% after Unilever (UN) said it will stop advertising on Facebook and Instagram. According to the company’s statement, “Continuing to advertise on these platforms at this time would not add value to people and society. We will be monitoring on-going and reviewing our current position if necessary.”
Since June 23, IBD leaderboard stocks have essentially given up 13.8% total gain from a 215.38 point of purchase in a cup with a handle after a breakout on May 19. When a stock hovers around a double-digit gain, investors should consider selling to avoid losing a share.
Early Monday, Facebook shares fell another 3% after PepsiCo (ENERGY), Hershey (HSY) and Starbucks (SBUX) joined the Facebook ad boycott over the weekend.
FANG member and IBD leaderboard stocks Netflix gave up a buy point of 459.07 on a flat basis amid Friday’s decline of 5%. Watch for a test of the 50-day moving average line this week. A sharp break from that support level would be a sell signal. Shares ended Friday approximately 2% above the 50-day line.
According to the IBD leaderboard comment, “Netflix is below the point of purchase and its 10-day moving average. It rose to a full position on June 22.”
According to the IBD Stock Checkup, Netflix shares have a 98 out of a highest possible 99 IBD composite rating, placing it at the top tier of growth stocks. 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.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones’ top stocks, Apple rose earlier on Monday as the stock continues its pullback from its record highs set on June 23.
The shares are well spread beyond the 319.79 buy point, which offered additional entry. The entry was an opportunity for investors to increase their positions. Shares, meanwhile, are still in the 20% -25% profit-taking zone from the 288.35-point-of-a-cup handle price.
Software leader Microsoft advanced Monday 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 still at new highs despite the current pullback. 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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