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Dow Jones Rallies 300 Points To Extend Win Streak; Nasdaq Drops As Tech Stocks Weigh

The Dow Jones Industrial Average jumped 300 points to a new high Monday, on track for its sixth straight advance. But the Nasdaq fell as tech stocks weighed.




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The Dow Jones industrials rallied 0.9%, while the S&P 500 was flat and the Nasdaq sank 1.4% in the stock market today. Small caps tracked by the Russell 2000 fell 0.6%. Volume was higher on both major exchanges vs. the same time Friday.

Tech stocks, hit hard last week, remain under pressure.

Last year, tech stocks boosted the Nasdaq to a 43.6% gain — its fifth-best year ever. The S&P 500 rose 16.3% in 2020 and the Dow added 7.2%. After a strong start this year and a short correction, the market has rebounded near record highs. Read The Big Picture for more detailed daily market analysis.

Covid-19 Update

The U.S. economy is trying to recover from the Covid-19 pandemic, which triggered nationwide lockdowns over a year ago. But many states are relaxing restrictions, and cases are plateauing or declining in some states as vaccinations roll out.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 35078.74 +300.98 +0.87
S&P 500 (0S&P5) 4232.40 -0.20 +0.00
Nasdaq (0NDQC ) 13557.47 -194.77 -1.42
Russell 2000 (IWM) 223.98 -1.41 -0.63
IBD 50 (FFTY) 45.91 -0.14 -0.30
Last Update: 11:58 AM ET 5/10/2021

Cumulative Covid-19 cases worldwide have topped 159 million, with more than 3 million deaths, according to Worldometer. In the U.S., cases are approaching 33.5 million with nearly 596,000 deaths, although the number of new cases in the U.S. has slowed dramatically in many states.

As countries rush to vaccinate their population, BioNTech (BNTX) soared 7% in heavy volume. BioNTech stock is on track to extend Friday’s 9.4% surge and are about 8% off a record high hit last week.

The German biotech reported Q1 earnings and sales that topped Wall Street targets. It also said it expects to deliver about 1.8 billion doses of its Covid vaccine this year, which would generate upward of $15 billion in sales. BioNTech announced a big expansion in Asia, too.

Pfizer (PFE), BioNTech’s Covid vaccine partner, rose 1.5% to climb back past a 39.77 buy point of a cup with handle. It remains in potential buy range, which goes up to 41.76. Pfizer stock advanced 1% on Friday, after the partners asked for full Food and Drug Administration approval of their vaccine.

Dow Jones Winners And Losers

3M (MMM), Procter & Gamble (PG) and Walgreens Boots Alliance (WBA), up about 2% each, were among the Dow’s biggest winners.

3M rallied 2.4% in above-average trade to a two-year high, on track to extend its win streak to six. Shares are extended from a 187.38 buy point of a flat base cleared in March, according to MarketSmith chart analysis. A recent pullback to the 10-week moving average also offered a change to buy.

Procter & Gamble stock is close to a 138.69 buy point of a cup with handle. The consumer products giant has consistently delivered profit and sales growth the past eight quarters, as many of its products are considered essential. A 59 Composite Rating is much lower than the 90 minimum expected of leading growth stocks.

Walgreens stock, up 2.3%, has completed a flat base with a 57.15 buy point. It’s about 2% away from the entry. The drugstore chain has posted double-digit EPS declines the past six quarters. Walgreens holds a 56 Composite Rating and 44 Earnings Per Share Rating.

Big-cap tech stocks were among the biggest blue chip losers. Intel (INTC) lost 2.2%, while Apple (AAPL) and Microsoft (MSFT) gave up a respective 1.6% and 1%. Credit card giant Visa (V), down 1.9%, was also under pressure.

Apple is on pace to end a three-day advance. The stock has pulled back after attempting a breakout April 29 past a 135.63 buy point of a cup with handle. It’s now trading near the 50-day line and is 5% below the entry.

Microsoft remains in potential buy range from a 246.23 buy point of a flat base, according to MarketSmith. The buy zone tops out at 258.54.

Outside The Dow

Chip, solar, software and automaker stocks led the downside among IBD’s 197 industry groups. But steel, metal ores miners and building-related stocks advanced.

In the automaker group, Tesla (TSLA) skidded more than 4% Monday, falling further below its key 50-day moving average. The stock is working on a new cup with handle with a 780.89 buy point. But the base is late stage, which increases the risk of failure.

The Innovator IBD 50 ETF (FFTY) edged 0.1% lower. Big gains from IBD 50 stocks Southern Copper (SCCO), MarineMax (HZO) and Medifast (MED) were offset by CareDx (CDNA),  Square (SQ) and Corsair Gaming (CRSR), down more than 5% each.

Generac (GNRC), Hubspot (HUBS) and 360 DigiTech (QFIN) gave up about 4% apiece.

Follow Nancy Gondo on Twitter at @IBD_NGondo

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