Banking

Dow Jones Rallies But Nasdaq Falls; Nio, Target, Zoom Stock Move On Earnings

Stocks were mixed early Tuesday as the Dow Jones Industrial Average extended its gains from Monday’s 600-point rally, but the Nasdaq fell.




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The Dow Jones industrials climbed 0.2%, the S&P 500 edged 0.1% lower and the Nasdaq fell 0.3% in the stock market today. Small caps tracked by the Russell 2000 were down 0.4%. Volume was lower on both major exchanges vs. the same time Monday.

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.

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 cases start to plateau in some states.

Cumulative Covid-19 cases worldwide have now surpassed 115 million with nearly 2.6 million deaths, according to Worldometer. In the U.S., cases have topped 29 million with more than 527,000 deaths, although the number of new cases in the U.S. has slowed dramatically in recent weeks.

Dow Winners And Losers

Dow Inc. (DOW), Goldman Sachs (GS) and Merck (MRK) were among the biggest Dow gainers, up about 1% apiece.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 31607.70 +72.19 +0.23
S&P 500 (0S&P5) 3901.92 +0.10 +0.00
Nasdaq (0NDQC ) 13559.62 -29.21 -0.21
Russell 2000 (IWM) 224.83 -1.24 -0.55
IBD 50 (FFTY) 48.10 +0.24 +0.50
Last Update: 10:14 AM ET 3/2/2021

Merck stock, up 1.1% in twice normal trade, is about 17% off its high. President Joe Biden is expected to announce later today the drugmaker will help produce Johnson & Johnson (JNJ) single-shot Covid-19 vaccine. J&J stock climbed 0.4%.

But Caterpillar (CAT), Apple (AAPL) and Microsoft (MSFT) gave up roughly 1% each. Caterpillar is well extended from a 150.65 buy point cleared last year, as well as several rebounds off its 10-week moving average.

Apple took a breather after Monday’s 5% jump. Shares remain below the 10-week line, but have recently moved closer to retaking it. A strong rebound above the support line would be a bullish sign. Apple stock on Feb. 18 triggered the 7%-8% loss-cutting sell rule as it fell more than 7% from a 138.89 buy point of a cup with handle.

Microsoft edged 0.8% lower Tuesday, after rising nearly 2% Monday. The stock is back in potential buy range from a 232.96 entry.

Outside The Dow

Target (TGT) reversed lower after a strong start. The retailer is still forming a base with a 200.06 buy point, according to MarketSmith chart analysis. Shares are about 5% below the entry. Target is an IBD Leaderboard stock.

Before the open, the retail giant reported fiscal Q4 earnings and sales that topped analyst views, thanks to a strong holiday season and stimulus checks. Target earned $2.67 a share on $28 billion in sales. Analysts expected EPS of $2.54 on sales of $27.5 billion.

Zoom Video (ZM) rose 3% in heavy volume as it continues to build a new base. It soared nearly 10% during Monday’s regular session, before reporting fiscal Q4 results that easily beat Wall Street targets. The videoconferencing platform also offered full-year 2022 guidance well above views. Zoom stock found support at its 10-week line last week.

But Nio (NIO) skidded 8% in fast turnover, giving back most of its nearly 9% surge from Monday. The China electric vehicle maker reported a Q4 loss of 14 cents a share on $1.02 billion in revenue. Analysts expected a 7-cent loss on $1.01 in sales. Nio stock is about 32% off its 52-week high after tumbling below its 50-day line last week.

The Innovator IBD 50 ETF (FFTY) climbed 0.3% as it aims to extend Monday’s 5% jump. MDC Holdings (MDC), InMode (INMD) and Digital Turbine (APPS) led the upside, while SciPlay (SCPL), 360 DigiTech (QFIN) and MaxLinear (MXL) lagged.

Follow Nancy Gondo on Twitter at @IBD_NGondo

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