Key market indexes opened higher but slipped into the red near midday Friday amid stimulus deal uncertainty and a weak performance from Intel stock in the Dow Jones Industrial Average.
The Nasdaq fell 0.6%, the Dow Jones industrials dipped 0.5% and the S&P 500 edged 0.2% lower in the stock market today. Small caps tracked by the Russell 2000 were down 0.3%. Volume was lower on both exchanges vs. the same time Thursday.
Despite recent volatility, the Nasdaq holds a 28% year-to-date gain, while the S&P 500 was up 7% through Thursday’s close. The Dow is down 1% and the Russell 2000 is now 4% 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 climbed back above its 50-day moving average. On Sept. 30, the IBD stock market outlook was upgraded to “confirmed uptrend” from “market in correction.”
Worldwide coronavirus cases have topped 42.1 million, with more than 1.14 million deaths, according to Worldometer. In the U.S., confirmed cases are now close to 8.7 million, with the death toll over 228,000.
U.S. Stock Market Today Overview
Last Update: 12:00 PM ET 10/23/2020
As the race toward a coronavirus vaccine or cure heats up, Gilead Sciences (GILD) rose 1.5%, after paring an early 5% gain. Late Thursday, the U.S. Food and Drug Administration granted full approval of Gilead’s antiviral remdesivir as a Covid-19 treatment. The FDA gave the drug emergency use approval on May 1.
On Thursday, Gildead stock climbed 0.8% to halt a seven-session losing streak. It’s been stuck below its 50-day moving average the past three months and is 28% off its 52-week high.
Intel Drags The Dow
Intel (INTC) weighed on the Dow with an 11% plunge in heavy trade, gapping down below its 50-day moving average for the first time in almost a month. Shares are 31% off their 52-week high and have been stuck below the 200-day line the past three months.
The chip giant’s Q3 results narrowly beat analyst targets, but its data-center chip sales disappointed. Intel earned an adjusted $1.11 a share on $18.33 billion in revenue. Wall Street expected $1.10 on $18.22 billion.
American Express (AXP) fell nearly 3% in twice normal volume after reporting mixed Q3 results as consumers curb travel, restaurant and entertainment spending during the pandemic. The credit card provider met views with earnings of $1.30 a share. Revenue of $8.75 billion topped forecasts for $8.66 billion.
AmEx stock continues to work on a consolidation with a 116.03 buy point, according to MarketSmith chart analysis. It’s about 12% below the entry.
On the upside, UnitedHealth (UNH) rose 2.2%, while JPMorgan (JPM) and Merck (MRK) added about 1% apiece. UnitedHealth stock remains in potential buy range from a 323.92 buy point of a double-bottom base.
Tesla Skids On China News
Automakers, data storage and gold miner stocks led the downside among IBD’s 197 industry groups. But homebuilders, banks and oil and gas stocks advanced.
Tesla (TSLA) gapped down and fell 3% to test support at its 50-day line. The electric-car maker is recalling about 30,000 imported Model S and Model X vehicles in China due to suspension problems, Bloomberg reported. Tesla, which is shaping a cup with handle with a 466 buy point, was featured as Thursday’s IBD Stock Of The Day.
The Innovator IBD 50 ETF (FFTY) edged slightly higher, as Pool (POOL), D.R. Horton (DHI) and Futu Holdings (FUTU) rose more than 2% each. But GoodRx (GDRX), Logitech (LOGI) and Innovative Industrial Properties (IIPR) fell over 2% apiece.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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