The Dow Jones Industrial Average again turned lower midday Wednesday ahead of the House’s vote to impeach President Trump. Intel soared as much as 13% on reports of a new CEO. Apple rallied nearly 2%, while Nio pared its early 3% advance.
Dow Jones Today: Trump Impeachment Vote
On Wednesday, the Dow Jones Industrial Average lost less than 0.1%, while the S&P 500 rose 0.2%. The tech-heavy Nasdaq composite rallied 0.5% in midday trade.
The House is expected to vote on President Trump’s impeachment around 3 p.m. ET Wednesday. A House vote to impeach would send the matter to the Senate, which holds the power to convict the president.
U.S. Stock Market Today Overview
Last Update: 10:32 AM ET 1/13/2021
According to the Worldometer data tracker, the cumulative number of confirmed coronavirus cases in the U.S. topped 23.3 million on Wednesday. Total virus-related deaths rose past 389,000.
The cumulative total of worldwide Covid-19 cases confirmed since the start of the outbreak topped 92.1 million Wednesday, with more than 1.97 million virus-related deaths.
Stock Market Rally
Looking back at the current uptrend, November was a key month for the stock market. IBD’s The Big Picture flagged the new uptrend following the market’s bullish follow-through day on Nov. 4. Meanwhile, the second week of January 2021 shows major stock indexes just off record highs.
Tuesday’s Big Picture commented, “Stock pickers can rejoice in the fact that individual growth stocks in the fields of health care, e-commerce, retailing, finance and consumer products are putting up big numbers, just seven trading days into the new year.”
Investors should continue to use the stock market’s strength to buy breakouts. Be patient and wait for powerful breakouts instead of chasing extended stocks. If the new breakouts work, then add more exposure. But if breakouts start to fail, then you can back away.
In particular, focus on stocks with strong relative strength. Find them by using the relative strength line. The RS line measures a stock’s price performance vs. the S&P 500. If the stock is outperforming the broader market, then the RS line angles upward. If a stock is performing worse than the broad market, then the line will point lower.
Stocks To Watch: IBD Long-Term Leaders
Stocks to watch include IBD Long-Term Leaders, companies with stable earnings growth and price performance. Veeva Systems (VEEV) is the latest addition to the list, as it regains its 10-week line. Shares are moving closer to an early entry at 292.90, while the conventional buy point remains at 314.09.
Dow Jones Stocks To Watch: Intel Soars
Dow Jones stock Intel soared as much as 13% after the company announced that VMware CEO Pat Gelsinger will replace CEO Bob Swan in February.
Intel shares remain about 15% off their 52-week high.
Stocks In Or Near Buy Zones: GM, Tractor Break Out
IBD Leaderboard member Chipotle Mexican Grill regained its 1,366.76 double-bottom buy point last week as it bounced off its 50-day line. Shares eased 0.1% Wednesday. The 5% buy zone goes up to 1,435.10.
According to IBD Stock Checkup, Chipotle stock shows a mild 79 out of a perfect 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.
Per Leaderboard commentary, “The new base is second stage, which boosts the chances of a good advance from here. After a breakout, one would like to see the relative strength line rise into new high territory, but the line hasn’t quite made it to new highs.”
General Motors broke out above a 46.81 buy point in a cup base on Tuesday amid an over-6% advance. GM shares are climbing out of the buy zone that tops out at 49.15 amid Wednesday morning’s 3% rise.
Bullishly, the stock’s RS line is at new highs, a sign of strong stock market outperformance. The relative strength line measures a stock’s price performance vs. the broad market.
Tractor Supply was featured as Tuesday’s IBD 50 Stocks To Watch pick.
Chinese Tesla rival Nio rose more than 3% Wednesday morning before trimming gains, as the company priced its $1.3 billion of convertible senior notes.
Shares are extended past a 57.30 buy point in a short cup base. Nio stock is about 5% away from its all-time highs.
Tesla Stock In Climax Top?
IBD Leaderboard stock Tesla looked to add to Tuesday’s 4.7% rebound with a 1% rally Wednesday morning. Shares are still trying to recover from Monday’s near-8% dive.
Friday’s IBD Stock Of The Day signaled that Tesla was flashing several signs of a climax top amid a sharply vertical run over the last few weeks.
On Friday, Tesla stock hit a record high at 884.49. Shares climbed as much as 88% from a 466 buy point in a cup with handle.
Dow Jones Leaders: Apple, Microsoft
In recent weeks, Apple shares have moved above aggressive entries at 125.49 and 122.09.
Software giant Microsoft moved up 0.4% Wednesday, as it trades below its 50-day line. Shares continue to trace a new base with a 228.22 buy point.
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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