The Dow Jones Industrial Average and the broader market gave up gains late Tuesday, after Senate Majority Leader Mitch McConnell shot down a proposed bipartisan $908 billion coronavirus stimulus plan. Apple (AAPL) and Intel (INTC) were the best-performing blue chips, while Tesla (TSLA) was another notable name making progress.
McConnell told reporters “we just don’t have time to waste time,” in response to a relief plan from members of the GOP-held Senate and the Democratic-led House. He said a spending bill and pandemic relief provisions will “likely come in one package.” The clock is ticking, with a government shutdown looming unless Congress can pass funding legislation by Dec. 11.
The bipartisan bill was crafted by a group that included Republicans Senators Mitt Romney and Susan Collins, as well as Democratic Senators Joe Manchin and Mark Warner, amid an ongoing stalemate. Provisions included $288 billion for small-business relief, $16 billion for the distribution of a coronavirus vaccine and $82 billion for schools.
House Speaker Nancy Pelosi (D., Calif.) and Treasury Secretary Steven Mnuchin were set to speak Tuesday afternoon on government funding, with Covid-19 relief also expected to be on the agenda. House Democrats had been pushing for a $2.4 trillion package before the election. However, negotiations between Pelosi and Mnuchin repeatedly failed to bear fruit.
U.S. Stock Market Today Overview
Last Update: 5:18 PM ET 12/1/2020
Meantime, Covid-19 cases continue to rise globally. Worldwide cumulative coronavirus cases are approaching 63.8 million, with nearly 1.48 million deaths, according to Worldometer. In the U.S., confirmed cases since the beginning of the pandemic have now topped 13.9 million, with the death toll over 274,000.
Nasdaq Leads S&P 500
The tech-heavy Nasdaq was the best performer among the major indexes. However, it ended up giving up some gains despite closing 1.3% higher. It remains comfortably clear of its 50-day moving average. Top performers included chipmaker Micron Technology (MU), which gained more than 4.5% and news and entertainment company Fox (FOX), with a similar gain.
It was a similar story for the broad-based S&P 500, which posted a gain of 1.1%. Insurance stock Lincoln National (LNC) was one of the index’s best stocks with a 5.7% gain, with data storage stock Western Digital (WDC) making similar progress.
Volume was mixed compared to Monday, according to early data. Trading was up 1.9% on the NYSE and down 9.5% on the Nasdaq.
It was a positive day for the sectors, with communication services, financials and technology making the best gains. The Vanguard Communication Services Index ETF (VOX) rose 1.7%.
Growth stocks managed to rally well into the close, which is reflected in the Innovator IBD 50 ETF (FFTY) gaining 0.8%. On the IBD 50, Big Lots (BIG) was the leading name, with a gain of more than 6%. Shoe stock Crocs (CROX) and Taiwan Semiconductor (TSM) also fared well.
Apple Stock Among Dow Jones Leaders
The Dow Jones Industrial Average gave up a fair portion of the day’s gains after McConnell’s comments. Yet it still managed to rise 0.6%.
Apple was one of the best performers after rising more than 3% as it vaulted past an aggressive buy point of 122.09. It also extended its win streak to five trading sessions. Another early entry is ahead at 125.49. The conventional buy point is 138.08, MarketSmith analysis shows.
Other good performers on the day included Intel, which rose 2.5% in a good day for chip stocks, and Travelers (TRV), which gained 2.9%.
Tesla Gains As EV Rivals Flounder
Leaderboard stock Tesla stock shrugged off Monday’s slide to rally back by more than 3%. It remains well extended from a 466 buy point after breaking out of a cup-with-handle base. Tesla has a best possible IBD Composite Rating of 99.
Rival EV makers did not fare so well. Namesake rival Nikola (NKLA) lost further ground on its 50-day line after it plunged more than 25% Monday. The stock was clubbed lower after General Motors (GM) revised an earlier agreement to supply Nikola with EV chassis. It also eliminated an earlier commitment to take an 11% stake in the company.
Chinese EV maker Nio (NIO) also continued to fall. It lost more than 10% as it slumped to a second straight day of losses. It remains well above its 50-day line and its 15.55 buy point, however. Its declining RS line is a cause for concern.
Zoom Stock Worst Of Lockdown Losers
One of the most notable losers of the day was Zoom Video Communications (ZM). The stock took a hit after Monday’s beat-and-raise earnings report lagged earlier coronavirus pandemic-driven boom quarters.
The “work-from-home” stock had already retreated heading into earnings amid positive vaccine news and a lofty valuation, but Tuesday’s beatdown was particularly brutal. It caused it to lose further ground on its 50-day line.
Among Tuesday’s breakouts, Charter Communications (CHRT) closed below its flat base buy point of 663.80. It has a Composite Rating of 88.
IPO stock Fathom (FTHM) saw its RS line hit a new high as it passed a consolidation pattern buy point of 24.95. The firm, which offers a cloud-based real estate brokerage platform, has a Composite Rating of 85.