The Dow Jones Industrial Average led key market indexes back into positive territory Wednesday afternoon, heading into the final hour of trade.
The Dow Jones industrials climbed 0.3%, while the S&P 500 and Nasdaq edged 0.1% higher in the stock market today. Small caps tracked by the Russell 2000 were slightly lower. Volume was higher on both major exchanges vs. the same time Tuesday.
Tech stocks boosted the Nasdaq to a 43.6% gain in 2020 for its fifth best year ever. The S&P 500 rose 16.3% and the Dow added 7.2% last year. Read The Big Picture for detailed daily market analysis.
The Covid-19 pandemic continues to roil the U.S. economy, as nationwide lockdowns approach the one-year mark. But there are signs of hope as vaccinations roll out and the number of cases starts to plateau in some states.
U.S. Stock Market Today Overview
Last Update: 2:54 PM ET 2/10/2021
Coronavirus cases worldwide are approaching 107.6 million with nearly 2.4 million deaths, according to Worldometer. In the U.S., cases have surpassed 27.8 million and are close to 480,000 deaths.
Dow Winners And Losers
Dow Inc. (DOW), up 3%, was the biggest blue chip gainer. The stock has advanced in seven of the past eight sessions. It cleared a 58.28 flat-base buy point on Jan. 6. But it triggered a sell signal three weeks later as shares fell 12% below the entry.
Walgreens Boots Alliance (WBA) rose 2%, on pace to extend its win streak to six. Walgreens stock is about 8% away from a 55.59 buy point of a long, deep cup with handle, according to MarketSmith chart analysis.
The Illinois-based drugstore chain will start offering Covid-19 vaccines in certain states Friday. On Tuesday, Walgreens and Uber Technologies (UBER) announced they will team up to give free rides to vaccine appointments for people in underserved communities.
On the downside, Cisco Systems (CSCO) gapped down and fell 3% in heavy trade. Late Tuesday, the networking giant reported fiscal Q2 adjusted earnings and revenue that topped views. But its Q3 guidance disappointed. Cisco stock is 7% off its 52-week high.
Outside The Dow
Database software, automakers and networking stocks led the downside among IBD’s 197 industry groups. But oil and gas, travel bookers and solar stocks outperformed.
In the automaker group, Tesla (TSLA) skidded more than 4%, though in slower-than-usual turnover. It’s now about 10% below its Jan. 25 peak. The electric vehicle giant is a Leaderboard stock. According to Leaderboard analysis: “Tesla recently met one key rule of a climax run: a 25% to 50% gain within three weeks after a long run-up from prior breakouts.”
Nvidia (NVDA) gained 3% to break out past a 587.76 flat-base entry in twice normal trade. Shares remain in potential buy range, which goes up to 617.15. Note the base is third-stage, and leading stocks often make their biggest runs out of earlier stage bases. Nvidia is an IBD Leaderboard stock.
Pot Stocks Soar
Tilray (TLRY) soared as much as 58% early Wednesday, before paring gains to 25%. On Tuesday, shares surged more than 40%. The pot stock is more than 400% extended from a 12.25 buy point of a cup base. Earlier this week, Tilray struck a deal with Grow Pharma to import and distribute Tilray’s medical cannabis products into the U.K.
Canopy Growth (CGC), Aurora Cannabis (ACB) and Aphria (APHA) also scored big gains after being promoted in the WallStreetBets Reddit forum, known for the recent GameStop (GME) short squeeze. Canopy Growth rose 6%; Aurora and Aphria soared more than 13% each.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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