Dow Jones, Nasdaq Hit New High As Stocks Gain; Biden Stimulus Talks In Focus

The Dow Jones Industrial Average climbed to a new high Tuesday, after reversing from a 140-point early loss, as President Biden’s stimulus and Trump’s impeachment trial were in focus.


The Nasdaq climbed 0.3%, the Dow Jones industrials edged 0.1% higher and the S&P 500 was fractionally higher in the stock market today. The Dow is trying to extend its win streak to seven. Small caps tracked by the Russell 2000, up 0.6%, outperformed. Volume was mixed, lower on the NYSE and higher on the Nasdaq, vs. the same time Monday.

President Joe Biden and Treasury Secretary Janet Yellen will meet with Wall Street executives, including those JPMorgan‘s (JPM) Jamie Dimon and Walmart‘s (WMT) Doug McMillon, to discuss the $1.9 trillion Covid-19 stimulus package.

Meantime, former President Donald Trump’s second impeachment trial kicked off earlier today with presentations from House managers and Trump’s lawyers.

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.

Covid-19 Update

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

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 31429.76 +44.00 +0.14
S&P 500 (0S&P5) 3917.50 +1.91 +0.05
Nasdaq (0NDQC ) 14033.80 +46.16 +0.33
Russell 2000 (IWM) 228.59 +1.28 +0.56
IBD 50 (FFTY) 48.17 +0.45 +0.94
Last Update: 3:02 PM ET 2/9/2021

Coronavirus cases worldwide are approaching 107.2 million with over 2.3 million deaths, according to Worldometer. In the U.S., cases have surpassed 27.7 million with nearly 477,000 deaths.

As the U.S. rushes to distribute vaccines, Johnson & Johnson (JNJ) climbed 0.7%. The stock gapped up Friday, after J&J asked the Food and Drug Administration for emergency use authorization for its single-shot Covid-19 vaccine. An FDA advisory panel will meet Feb. 26 to discuss the vaccine.

J&J’s vaccine proved 66% effective in a final phase test. Vaccines from Moderna (MRNA) and Pfizer (PFE) and BioNTech (BNTX), which require two doses, are more than 94% effective.

Dow Winners And Losers

Boeing (BA) lifted 2% to retake its 50-day moving average as it continues to consolidate. Boeing shares are about 11% below a 244.18 buy point, according to MarketSmith chart analysis. The jet maker said Tuesday it delivered 26 aircraft last month, including 21 of its 737 Max planes. But the number of cancellations are still outpacing sales.

Among other blue chip gainers, UnitedHealth Group (UNH) and McDonald’s (MCD) advanced more than 1% each. UnitedHealth stock has been working on a flat base since November, while McDonald’s flat base dates back to October. They are 10% and 8% below their respective buy points.

On the downside, Disney (DIS) and (CRM) gave up about 1% apiece. Disney stock cleared a 183.50 buy point of a flat base in 38% higher than average volume. It remains in potential buy range, which goes up to 192.68.

The media and theme parks giant reports fiscal Q1 earnings Thursday after the close. Wall Street forecasts a loss of 33 cents a share on nearly $15.9 billion in sales.

Outside The Dow

Software, generic drug and movie-related stocks led the upside among IBD’s 197 industry groups. But telecom services, automakers and retail stocks lagged.

IBD Leaderboard stock Tesla (TSLA) skidded nearly 2% as the electric vehicle giant comes under scrutiny from Chinese regulators. Tesla has been summoned over its Shanghai-made Model 3 cars regarding problems including “abnormal acceleration” and “battery fires.” Tesla stock remains sharply extended from a 466 buy point of a cup with handle.

The Innovator IBD 50 ETF (FFTY) rose 0.9%, thanks to a rally by many growth stocks. 1-800-Flowers (FLWS) was the top IBD 50 stock, rising more than 8%. Education stock Chegg (CHGG) reversed from an early loss to a 1.8% gain.

Follow Nancy Gondo on Twitter at @IBD_NGondo


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