Dow Jones Surges More Than 300 Points, Led By Boeing, Walt Disney, Chevron; What’s Wrong With Apple Stock?


Major stock indexes closed higher Monday to kick off a shortened week of trading. Top gainers in the Dow Jones Industrial Average included Boeing (BA), Chevron (CVX) and Walt Disney (DIS). But weakness in large-cap technology stocks like Apple (AAPL), Zoom Video (ZM) and Qualcomm (QCOM) weighed on the Nasdaq 100.


The Dow Jones strengthened in the afternoon on reports President-Elect Joe Biden will nominate Janet Yellen for Treasury secretary.

The Dow Jones industrials ended with a gain of 1.1%, and the Russell 2000 small-cap index jumped nearly 2%. The S&P 500 rallied  0.6% and the Nasdaq composite edged up 0.2%.

The stock market remains in a confirmed uptrend, according to The Big Picture. The S&P 500 confirmed a new uptrend on Nov. 4, when it jumped 2.2% in higher volume. Distribution days have been contained since then, with three on the Nasdaq and two on the S&P 500.

Apple stock was the worst performer in the Dow Jones today, down 3%. Its Accumulation/Distribution Rating has slumped to D- amid recent signs of institutional selling.

NYSE-listed Snap (SNAP) gapped up and rose 2.2% after the company announced a TikTok-type service on its platform, where users can produce and share short videos.

Oil and gas stocks outperformed, helped by rising prices. At the New York Mercantile Exchange, U.S. crude oil futures settled at $43.06 a barrel, up 1.5%. Energy Select Sector SPDR ETF (XLE) soared 7%.

Outside The Dow Jones

The MarketSmith Growth 250 delivered plenty of big gainers, including Shift4 Payments (FOUR). Shares jumped 6%, good for a breakout over a trend line.

Meanwhile, speculation continued unabated in China stocks in the MarketSmith 250. Xpeng (XPEV), Li Auto (LI), Dada Nexus (DADA) and Jumia Technologies (JMIA) closed with double-digit percentage gains.

Excessive speculation has been seen near market tops in the past, just like excessive bullishness has also been seen at market tops. Last week, Investors Intelligence reported the percentage of bullish newsletter writers rose to 59.6%. The bulls were at 60% in late August, just ahead of a sharp market pullback.

Medifast (MED) followed through after a breakout from a cup-with-handle base Friday. Shares jumped 7% to 191.90. The buy point was 179.14. Medifast is thinly traded with an average daily volume of around 160,000. But it’s also a high-priced stock, which lifts its average daily dollar volume to around $30.5 million

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) added 0.8% after jumping 1.9% last week. Elsewhere, the iShares Expanded Tech-Software Sector ETF (IGV) eased 0.1%, and the VanEck Vectors Semiconductor ETF (SMH) gained 1.5%.

Leaderboard stocks like Tesla (TSLA), Taiwan Semiconductor Manufacturing (TSM), Target (TGT) and PayPal (PYPL) ended with gains of 3% or more.

Novocure (NVCR), which joined Leaderboard earlier this month when it was finding support at the 10-week moving average, added 1.5% to 134.41. It’s now forming the right side of a cup base with a 140.99 buy point.

Coronavirus Update

The U.S. topped 200,000 cases for the first time on Friday, and hospitalizations are soaring.

AstraZeneca (AZN) fell 1% after the company said its coronavirus vaccine was 62% or 90% effective, depending on the dosage. The AstraZeneca Covid-19 vaccine, developed with Oxford University, is far cheaper than the Pfizer or Moderna vaccines, which are roughly 95% effective. Many poorer or middle-income countries have signed supply deals with AstraZeneca.

Pfizer (PFE) and BioNTech (BNTX) filed for Food and Drug Administration (FDA) approval of their coronavirus vaccine on Friday. Moderna (MRNA), which released strong interim data on its Covid vaccine last Monday, will likely follow in days. An FDA advisory panel will meet in early December to discuss coronavirus vaccines, with FDA approval likely soon after.

In other stock market news, Regeneron (REGN) shares gained 0.9% after the FDA on Saturday approved Regeneron’s antibody cocktail for treating coronavirus patients. President Trump received the Regeneron treatment when he had Covid-19.

The stock market will be closed Thursday in observance of Thanksgiving. It will be open for a half session Friday, closing at 1 p.m. ET.

Follow Ken Shreve on Twitter @IBD_KShreve for more stock market analysis and insight.


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