Stocks staged a rebound after Wednesday's rout, as the Nasdaq led and the Dow Jones Industrial Average reversed from an early 229-point drop.
The Nasdaq rallied 2.4%, the S&P 500 rose 2% and the Dow Jones industrials rose 1.4% in the stock market today. Small caps tracked by the Russell 2000 advanced 1%. Volume was running lower on both major exchanges vs. the same time Wednesday.
Gross domestic product rebounded 33.1% in Q3, topping Econoday's estimate for a 30.9% gain, as the economy tries to recover from coronavirus lockdowns. That follows Q2's record drop of 31.4%. But a resurgence in Covid-19 cases across the U.S. is a concern.
Amid recent volatility, the Nasdaq's year-to-date gain has been cut to 23%, while the S&P 500 was up 1% through Wednesday's close. The Dow is down 7% and the Russell 2000 is now 8% underwater this year. Read The Big Picture for detailed daily market analysis.
The Dow Jones index, which wrapped up September with a 2.3% loss, has fallen below its 50-day moving average. On Sept. 30, the IBD stock market outlook was upgraded to "confirmed uptrend" from "market in correction." But on Monday, the outlook was downgraded to "uptrend under pressure" as stocks sold off.
Covid-19 Update
Worldwide coronavirus cases have topped 44.9 million, with more than 1.18 million deaths, according to Worldometer. In the U.S., confirmed cases are approaching 9.13 million, with the death toll over 233,000. New virus cases hit record highs on Friday and Saturday in the U.S., topping 80,000 each day.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 26836.40 | +316.45 | +1.19 |
| S&P 500 | (0S&P5) | 3329.60 | +58.57 | +1.79 |
| Nasdaq | (0NDQC ) | 11244.27 | +239.40 | +2.18 |
| Russell 2000 | 155.19 | +1.88 | +1.23 | |
| IBD 50 | 37.06 | +0.58 | +1.59 | |
Last Update: 2:18 PM ET 10/29/2020 |
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As the race toward a coronavirus treatment or vaccine heats up, Moderna rallied 10% to retake its 50-day moving average. The stock is working on a cup with handle with an 81.47 buy point, according to MarketSmith chart analysis.
The biotech reported a wider-than-expected loss of 59 cents a share for Q3. But revenue surged 826% to $157.91 million, nearly double analyst forecasts. Moderna's Covid-19 vaccine candidate is one of the closest to possible approval. It has said it could release final-phase clinical trials data next month.
Apple Leads Dow Ahead Of Earnings
Apple led the Dow Jones index with a 3.7% gain, ahead of its fiscal Q4 earnings due after the close. Analysts expect the iPhone maker's earnings to fall 9% to 69 cents a share on 1% lower sales of $63.39 billion. Apple stock, which tumbled 4.6% Wednesday, is shaping a cup with handle with a 125.49 buy point.
Visa, up 2%, recovered part of Monday's 4.8% loss. Late Wednesday, the credit card giant reported fiscal Q4 results that beat views on both the top and bottom line. It earned $1.12 a share on $5.1 billion in revenue, marking respective declines of 24% and 17%. Analysts expected EPS of $1.09 on $5.02 billion revenue.
Among other blue chip winners, Disney, Honeywell and Travelers added more than 1.5% each.
Health care-related plays, however, were mostly lower. Walgreens Boots Alliance and UnitedHealth Group fell over 1% apiece. Johnson & Johnson gave up 0.7%, while Amgen and Merck each edged 0.2% lower.
Amazon Earnings On Tap
Outside the Dow, Amazon advanced 2.2% ahead of its quarterly results due after the closing bell. Analysts forecast earnings will soar 72.6% to $7.30 a share on 32.8% higher revenue of $92.92 billion. Amazon stock is working on the handle of a cup base with a 3496.34 buy point. It's about 9% away from the entry.
Earnings also on tap after the close include fellow FANG stocks Alphabet and Facebook, according to IBD's Investing Action Plan.
Medical, solar and software stocks led the downside among IBD's 197 industry groups. But airline, chip and internet content stocks outperformed.
Pinterest gapped up and surged 27% in heavy trade to a record high, though it backed off from an earlier 40% vault. The online photo sharing site reported adjusted earnings of 13 cents a share on $443 million in revenue, blowing away views for 4 cents on $383.5 million.
IBD Leaderboard and IBD 50 stock ServiceNow rallied 5% in twice normal trade to rebound off its 50-day line. Late Wednesday, the enterprise software maker reported Q3 results that topped views, while adjusted subscription billings guidance met expectations.
ServiceNow stock popped back above a 401.92 buy point, though all stock purchases are risky with the market uptrend under pressure. The buy zone tops out at 527.02.
Chip Stock Leads IBD 50
Also in the IBD 50, Inphi gapped up and soared 27% in massive trade. It blew past a 125.93 buy point of a cup with handle and is now about 12% extended from the entry.
Marvell Technology said it plans to buy Inphi in a cash and stock deal worth around $10 billion. Marvell plunged nearly 11% before cutting its loss to 3%.
Other IBD 50 gainers included Dynatrace, PerkinElmer and Lam Research, up about 3% each. Marvell, Crocs and Horizon Therapeutics led the downside.
The Innovator IBD 50 ETF advanced 1.4%.
Follow Nancy Gondo on Twitter at @IBD_NGondo
