The shares moved out of session highs, but maintained solid gains on Thursday afternoon when the Dow Jones Industrial Average rose nearly 300 points.
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The Nasdaq rallied 1.2%, Dow Jones industrials rose 1%, and the S&P 500 advanced 1.1% on the stock market today. The small limits followed by the Russell 2000 added 0.8%. Volume was mixed, higher on the NYSE but lower on the Nasdaq, compared to the same time on Wednesday.
The Dow rose to 470 points earlier, after the Labor Department reported a 4.8 million jump in June payrolls. That exceeded estimates of a 3 million increase. The unemployment rate fell to 11.1%, against a forecast of 12.4% and 13.3% for May.
Unemployment claims last week reached 1.42 million, a little more than expected at 1.4 million.
President Donald Trump tweeted before his press conference: “Great numbers of jobs!”
Covid-19 update
Meanwhile, the coronavirus pandemic continues to spread. The United States set a new single-day record with more than 50,000 cases on Wednesday, according to data from Johns Hopkins University.
According to the Worldometer, global coronavirus cases are close to 10.9 million, with more than 520,000 deaths. In the United States, confirmed cases are close to 2.8 million, with a death toll close to 131,000.
Summary of the US Stock Market |
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|---|---|---|---|---|
| Index | Symbol | Price | gain loss | % Change |
| Dow Jones | (0DJIA) | 26010.22 | +275.25 | +1.07 |
| S&P 500 | (Sample; P5) | 3,149.94 | +34.08 | +1.09 |
| Nasdaq | (0NDQC) | 10270.92 | +116.29 | +1.15 |
| Russell 2000 | (IWM) | 143.21 | +1.39 | +0.98 |
| IBD 50 | (FFTY) | 35.09 | +0.28 | +0.80 |
Last Updated: 2:32 PM ET 7/2/2020 |
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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 again. California on Sunday ordered seven counties, including Los Angeles, to close bars to help curb the spread of the coronavirus.
But the recovery in the coronavirus stock market remains intact. A resurgence in tech stocks pushed Nasdaq, which has a wealth of tech, to a 13% annual gain through Wednesday’s close, while the S&P 500 was down 4% and the Dow was down 10%. Small limits still lag behind, with the Russell 2000 down 14%.
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.)
Nasdaq is on track for a weekly jump of 5.2% as it hits new highs. The S&P 500 and Dow are looking at respective gains of 4.5% and 4% for the week, with the Dow up to 957 points.
Pfizer leads again
In the early afternoon, the Dow was positive across the board. Pfizer (PFE), 3% more, led for the second consecutive session. On Wednesday, the drug giant rose 3% in the heavy trade after reporting promising results from early trials for its experimental coronavirus vaccine developed in conjunction with BioNTech (BNTX)
Pfizer stocks are working on a shallow basis with a buy point of 39.32, according to MarketSmith’s graphical analysis. It is 12% away from the entrance.
Among other blue chips, Walgreens Boots Alliance (AMB) and Caterpillar (CAT) advanced about 2% each.
IBD Classification Table Actions Apple (AAPL) and Microsoft (MSFT) added approximately 1% each. Apple shares are on the way to a new closing high. It extends considerably from an additional purchase point of 319.79 a cup with a handle. Stocks remain in the 20% -25% profit-taking zone of a 288.35-cup mango inflow.
Microsoft, up 1.4% for a new high, is again stretching from a purchase point of 187.61 a cup with a handle. The buy zone peaks at 197. The software giant’s relative line of strength, which compares a stock’s performance to the S&P 500, is at a new high. Microsoft is also a long-term leader of IBD.
Automakers led the rise among IBD’s 197 industry groups with a jump of 7%.
Tesla runs ahead
Tesla (TSLA) soared 8% more in fast trade to set a third consecutive record. The electric car maker said it delivered 90,650 vehicles in the second quarter, beating views of approximately 88,000. The IBD leaderboard stock expanded considerably, and also triggered the 20% -25% profit-taking rule from point of purchase 869.92 of a deep cup with handle.
The Innovator IBD 50 ETF (FFTY) advanced 0.7%, thanks to huge gains in Chinese stocks Futu Holdings (FUTU) and GSX Techedu (GSX), and Zynex (ZYXI)
Follow Nancy Gondo on Twitter at @IBD_NGondo
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