Dow Jones Erases Early Gains, Turns Negative On Higher Coronavirus Cases

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The Dow Jones Industrial Average erased its early gains in today’s market and traded slightly lower along with the other major indexes. On the positive side, the Nasdaq is still near the 12,000 level, which is a key technical indicator.

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House Speaker Nancy Pelosi set a Tuesday deadline for a coronavirus stimulus package with the Trump administration before the election.

Meanwhile, the market reacted negatively to the number of new coronavirus cases over the weekend. New U.S. cases on Saturday reached over 57,000, according to Johns Hopkins data. While this was an improvement from Friday’s cases, which topped 69,000, it was still the fifth straight day of new cases topping 50,000.

Stock Market Today

The Nasdaq composite traded 0.4% lower after paring initial gains. Meanwhile, the S&P 500 lost 0.6% and the Dow Jones fell 0.5%. The Russell 2000 small-cap index advanced a modest 0.2%. Volume was trading lower on the NYSE but higher on the Nasdaq vs. the same time on Friday.

The Innovator IBD 50 ETF (FFTY) slipped 0.1% in early afternoon trading. The index continues to trade nicely above its 50-day moving average and is just 1% away from a 40.05 buy point in a flat base. Stocks that led the index higher on Friday included Dynatrace (DT) and Chegg (CHGG).

Chegg stock is near an 89.92 cup-based buy point. Meanwhile, Dynatrace is building a new consolidation above its 50-day moving average after a failed breakout.

U.S. Stock Market Today Overview
Index	Symbol	Price	Gain/Loss	% Change
Dow Jones	(0DJIA)	28488.76	-117.55	-0.41
S&P 500	(0S&P5)	3467.19	-16.62	-0.48
Nasdaq	(0NDQC )	11633.48	-38.08	-0.33
Russell 2000	(IWM)	162.46	+0.11	+0.07
IBD 50	(FFTY)	39.41	+0.03	+0.08
Last Update: 1:30 PM ET 10/19/2020

As for the Dow Jones, a majority of the 30 components traded lower, with UnitedHealth Group (UNH) and Disney (DIS) leading the downside with losses of 1.2% each. Additionally, finance stocks American Express (AXP) and JPMorgan (JPM) also were among Monday’s biggest decliners.

On the upside, Nike (NKE) initially saw gains of over 1%. The IBD Leaderboard stock is currently extended from an earlier 104.79 buy point. Shares of Nike are holding gains from a gap-up on earnings in late September. The stock is currently in the 20%-25% profit-taking zone.

Beyond Dow Jones: Alibaba, Best Buy

Beyond the Dow Jones, three stocks breaking out Monday morning include Upland Software (UPLD), Autodesk (ADSK) and Staar Surgical (STAA).

Upland Software rose 1.8% above a 45.10 consolidation buy point. The buy zone tops out at 47.36. Upland features a near-perfect Composite Rating of 97 and an RS line that’s been trending higher in recent weeks.

Elsewhere, the MarketSmith Growth 250 stock Autodesk hit a new high of 268.44 on Monday and rose into the 5% buy zone of a cup base with a 262.04 buy point. The design drafting and modeling software maker has an 89 Composite and an 88 RS Rating.

Finally, Staar Surgical, which makes implantable eye lenses, jumped over 12% Monday, slightly past the 5% buy zone from a 62.61 buy point. Staar Surgical’s RS line has also catapulted to new highs alongside the stock price, which is a bullish sign.

The post Dow Jones Erases Early Gains, Turns Negative On Higher Coronavirus Cases appeared first on Investor’s Business Daily.