The Dow Jones Industrial Average briefly rallied more than 50 points before falling Friday, as Intel shares dived 11% on weak sales results. Apple is trying to find support at a key level, while Tesla skidded 4% on China recall news.


Blue chip leaders Apple (AAPL) and Microsoft (MSFT) stumbled 1.2% and 0.2%, respectively, in today’s stock market. Dow Jones members American Express (AXP) and Intel (INTC) reported earnings ahead of Friday’s stock market open.

PayPal (PYPL) and Tesla (TSLA) are approaching new buy points, as the current stock market rally continues. Tesla slid as much as 4% after Bloomberg reported the company is recalling about 30,000 vehicles in China.

Microsoft, PayPal and Tesla are all IBD Leaderboard stocks.

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The Dow Jones Industrial Average slipped 0.3%, while the S&P 500 fell 0.1%. The Nasdaq dropped 0.35% in morning trade.

Among exchange traded funds, Innovator IBD 50 (FFTY) rose 0.3%. Meanwhile, the Nasdaq 100-linked Invesco QQQ Trust ETF (QQQ) fell 0.5%, and the SPDR S&P 500 (SPY) ETF traded down 0.1%.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 28362.62 -1.04 +0.00
S&P 500 (0S&P5) 3459.65 +6.16 +0.18
Nasdaq (0NDQC ) 11490.96 -15.04 -0.13
Russell 2000 (IWM) 162.69 +0.56 +0.35
IBD 50 (FFTY) 38.16 +0.13 +0.34
Last Update: 10:38 AM ET 10/23/2020

Amid the coronavirus stock market rally, the tech-heavy Nasdaq is up 28.2% for the year through Thursday’s close. Meanwhile, the S&P 500 is up 6.9%, while the Dow is down 0.6% year to date, through the Oct. 22 close.

Coronavirus Updates

According to the Worldometer data tracker, the cumulative number of confirmed coronavirus cases in the U.S. topped 8.6 million on Friday. Total virus-related deaths rose past 228,000.

The cumulative total of Covid-19 cases confirmed since the start of the outbreak worldwide topped 42.0 million Friday, with more than 1.14 million virus-related deaths.

Coronavirus Stock Market Rally

According to IBD’s The Big Picture, the coronavirus stock market rally continues after the recent stock market correction ended on Sept. 30.

Thursday’s Big Picture commented that “The Nasdaq remains in a precarious situation after declining six of the last eight trading sessions. All three major indexes are attempting to find support just above their 50-day lines, logical support levels. On Thursday, indexes found some support at the 21-day exponential moving averages.”

Nevertheless, after the Dow’s bullish signal on Sept. 30, investors are cleared to start buying new breakout stocks. The best candidates are those that proved most resilient during the recent stock market weakness. Keep a close eye on stocks with strong relative strength lines. These ideas could become stock market leaders.

Use MarketSmith features like the RS Line Blue Dot to easily spot such stock candidates. The RS Line Blue Dot is assigned to stocks whose RS lines are making new highs while the stock is basing or breaking out.

Stocks to watch include IBD Long-Term Leaders, companies with stable earnings growth and price performance.

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Dow Jones Earnings: American Express, Intel

Among the Dow Jones stocks, American Express and Intel reported earnings ahead of Friday’s stock market open.

American Express dropped 3% on mixed Q3 results. The company reported EPS of $1.30 on revenue of $8.75 billion. Analyst had called for EPS of $1.30 on sales of $8.66 billion.

Intel dived as much as 11% on disappointing data-center chip sales. The chipmaker narrowly beat Wall Street’s overall targets for the third quarter late Thursday. The company earned an adjusted $1.11 a share on sales of $18.33 billion in the September quarter. Analysts expected Intel earnings of $1.10 a share on sales of $18.22 billion.

Intel shares are more than 30% off their 52-week high amid substantial weakness over the last nine months.

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Stocks In Or Near Buy Zones: PayPal, Tesla

Wednesday’s IBD Stock Of The Day, PayPal, ended Thursday back below a cup with handle’s 209.12 buy point. The stock broke out Wednesday after the company announced its expansion into cryptocurrencies. Shares fell almost 1% Friday morning.

According to the IBD Stock Checkup, PayPal stock boasts a best-possible 99 IBD Composite Rating. The Composite Rating — an easy way to identify top growth stocks — is a blend of key fundamental and technical metrics to help investors gauge a stock’s strengths.

Bullishly, the stock’s relative strength line hit a new high on Wednesday’s breakout, indicating strong stock market outperformance.

PayPal is an IBD Leaderboard stock. Earnings are due Nov. 2 after the close. Analysts expect the top payment processor to earn 94 cents per share on revenue of $5.4 billion.

Tesla stock fell as much as 4% early Friday after Bloomberg reported the company is recalling about 30,000 imported Model S and Model X vehicles in China due to suspension problems.

Tesla shares are trying to find support at their 50-day line, as they approach a 466 buy point in a handle.

The electric-auto leader was Thursday’s IBD Stock Of The Day.

Top Growth Stocks To Buy And Watch

Dow Jones Leaders: Apple, Microsoft

Among the top Dow Jones stocks, Apple fell 1.2% early Friday, looking to extend a two-day slide. Shares are trying to again find support around their 50-day moving average line. Meanwhile, the stock is forming the right side of a new cup-with-handle base, showing a 125.49 buy point, according to MarketSmith chart analysis.

The blue-chip giant is the No. 1-performing Dow Jones stock for 2020, with a 57.7% advance through Thursday’s close. Recent Dow Jones 30 addition Salesforce is the No. 2 performer with a 53.5% year-to-date advance.

Software leader Microsoft moved down 0.2% early Friday. Shares are forming a new cup with handle with a 225.31 buy point, and are about 5% away from the new entry.

Year to date, Microsoft is one of the top Dow Jones stocks, advancing 36.3% through Wednesday’s close.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.


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The post Dow Jones Weakens As Intel Dives 11% On Earnings; Tesla Skids On China Recall News appeared first on Investor’s Business Daily.

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