Dow Jones raises 400 points when Boeing takes off, Nasdaq falls back higher

The Dow Jones Industrial Average rushed nearly 400 more points despite past gains before coronavirus cases continue to rise in the US.

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Dow Jones industrials rallied 1.5%, the S&P 500 rose 0.7% and the Nasdaq retraced to a 0.4% gain in the stock market today. The small limits followed by the Russell 2000 soared 2.9%. Volume was mixed, higher on the NYSE but lower on the Nasdaq, compared to the same time on Friday.

A recent resurgence in tech stocks had raised Nasdaq, which was heavy tech, to an annual gain of 9% through Friday’s close, while the S&P 500 was down 7% and the Dow was down 12%. Small limits continue to lag behind the Russell 2000 with a 17% drop.

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 10.3 million, with more than 505,000 deaths. In the U.S., confirmed cases now exceed 2.6 million, with a death toll exceeding 128,000.

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.

Texas and Florida have closed bars since then. California on Sunday ordered seven counties, including Los Angeles, to close bars to help curb the spread of the coronavirus.

Boeing takes off

Boeing (BA) soared 8% in fast trade to lead the Dow Jones Index, after receiving authorization Sunday from the Federal Aviation Administration to begin certification test flights for its 737 Max jet. The aircraft maker will reportedly start test flights today as its goal is to return to service soon. Boeing shares remain at more than 50% of their 52-week high.

Among other blue chip winners, Caterpillar (CAT), Raytheon Technologies (RTX) and Dow Inc. (DOW) advanced about 2% each.

But large-cap techs were under pressure with Cisco (CSCO), Intel (INTC) and Microsoft (MSFT) less than 1% each.

Microsoft shares have retreated to the buy range from 187.61 one-cup-with-a-handle purchase points. The buy zone peaks at 197. The software giant is an IBD leaderboard and IBD long-term leader stocks.

Software, internet retail and movie-related stocks led the drop among IBD’s 197 industry groups.

FANG Actions Facebook (FULL BOARD), Amazon (AMZN) and Netflix (NFLX) yielded approximately 1% each.

Facebook Boycott Grows

Facebook was down 0.8% on Monday, after falling 8% on 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 accelerates. Weekend PepsiCo (PEP) reportedly did the same.

Facebook broke its 50-day moving average on Friday for the first time since mid-April. The round trip sale rule was triggered after deleting a gain of about 14% from the point of purchase of 215.38 of a cup with a handle.

In biotech news, Gilead Sciences (GILD) rose more than 2% in the above-average trade after announcing the price of its medication remdesivir to treat Covid-19. Gilead said it will cost $ 3,120 for a typical American patient with commercial insurance and that he will begin charging for Covid-19 treatment in July.

The stock is trying to return above its 50-day line as a base with a buy point of 86.07 continues to take shape.

Follow Nancy Gondo on Twitter at @IBD_NGondo

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