Major market indices rose on Wednesday afternoon as the Dow Jones Industrial Average swung from a loss of 100 points to a gain of 300 points.
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The Dow Jones Industrials was up 0.7%, the S&P 500 was up 0.6% and the Nasdaq was up 0.3% in the stock market. Small caps followed by the Russell 2000, up 1.9%, outperformed. Volume was lower on both major exchanges compared to the same time on Tuesday.
Shares rose as Federal Reserve Chairman Jerome Powell reiterated Tuesday’s remarks that inflation and employment remain well below the central bank’s targets. That means the Fed will likely continue to buy bonds to support the US economy.
Tech stocks pushed the Nasdaq to a 43.6% gain in 2020, for its fifth best year on record. The S&P 500 rose 16.3% last year and the Dow 7.2%. Read The Big Picture for a detailed daily market analysis.
Covid-19 update
The Covid-19 pandemic continues to shake the U.S. economy as blockades across the country near a year’s mark. But there are signs of hope as vaccinations roll out and cases in some states begin to fall.
Overview US stock market today |
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|---|---|---|---|---|
| Table of contents | Symbol | price | Profit loss | % Change |
| Dow Jones | (0DJIA) | 31799.61 | +262.26 | +0.83 |
| S&P 500 | (0S & P5) | 3906.61 | +25.24 | +0.65 |
| Nasdaq | (0NDQC) | 13515.25 | +50.05 | +0.37 |
| Russell 2000 | (Etc.) | 226.53 | +4.77 | +2.15 |
| IBD 50 | (FFTY) | 46.52 | -0.01 | -0.02 |
Last update: 12:02 PM ET 2/24/2021 |
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According to the Worldometer, there have been more than 112.8 million cases worldwide with nearly 2.5 million deaths. In the US, the number of cases is now approaching 29 million with more than 515,000 deaths, although the number of new cases in the US has slowed dramatically in recent weeks.
As countries rush to administer Covid-19 vaccines, Johnson & Johnson (JNJ) rose 1.3%, on the pace of stopping a three-day slide. Stocks found support from their 50-day moving average on Tuesday and are back in buy range from a buy point of 155.57 on a flat basis. The buying range goes up to 163.35.
An FDA advisory panel will meet on Friday to review the vaccine and submit a recommendation to the Food and Drug Administration. J&J said the FDA found the vaccine to be 66% effective in protecting against Covid-19 infections and 88% effective in preventing severe cases.
Dow winners and losers
Boeing (BA), up 5% in rapid sales, led the Dow. According to MarketSmith’s analysis, stocks are the bright side of a 12-week consolidation. Boeing’s stock is about 9% from a buy point of 244.18. But a 4 Composite Rating and 1 Earnings Per Share Rating are pretty weak.
The Federal Aviation Administration requires engine inspections before Boeing 777 jets equipped with a particular Pratt & Whitney engine can fly again. On Saturday, a Boeing 777 and 747 experienced midair engine fires, causing debris to fall to the ground.
Among others blue chip winners, Caterpillar (CAT), From Dow Inc. (DOW), Chevron (CVX) and Goldman Sachs (GS) won more than 2% each.
Disney (DIS) added 1.5% in heavy volume to a new high, on track to expand its win streak to four. The Disney stock has expanded from a purchase point of 183.50 to a flat base. The buying zone came to 192.68.
But DIY store (HD) stumbled more than 4% in heavy trading. On Tuesday, stocks lost 3%, although the home improvement retailer reported better-than-expected Q4 results before the market opened. It offered no prospects.
Home Depot stock has been operating on a flat basis with a buy point of 293.05, although it has now abandoned its 200-day moving average line.
Outside the Dow
Oil and gas, auto manufacturers and aviation stocks led to the upward momentum of IBD’s 197 industry groups. But software, utilities, and online and other retailers lagged.
Square (SQ) fell 8% in heavy trading early Wednesday, before cutting the loss to 5%. The shares, on track for a third consecutive decline, found support on the 50-day line. The POS terminal company reported strong fourth-quarter earnings, but revenue and gross payment volume missed Wall Street targets. Square also announced a new $ 170 million investment in Bitcoin.
Bitcoin rebounded 4% early Wednesday and briefly climbed above USD 51,000 before diminishing gains. Bitcoin’s price traded around $ 49,600 in afternoon trading, according to CoinDesk. Bitcoin hit $ 58,332 on Sunday and dipped below $ 45,000 on Tuesday before recovering.
Grayscale Bitcoin Trust (GBTC) rose 6% Wednesday after two days of declines.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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