Dow Jones Futures Rise On Coronavirus Vaccine, Boeing 737 Max News; Zoom Video In Buy Zone, Apple, Amazon Set Up – Investor's Business Daily

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Dow Jones futures rose modestly early Friday, along with S&P 500 futures and Nasdaq futures, amid coronavirus vaccine news and a green light for the Boeing 737 Max. The stock market rally extended losses Thursday on stimulus deal doubts but closed well off session lows, with Apple stock among several big cap techs working on lower buy points.

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Pfizer (PFE) said Friday that it could apply for emergency FDA approval of its coronavirus vaccine by late November. Pfizer and partner BioNTech (BNTX) could have preliminary late-stage data this month showing Covid-19 vaccine candidate is effective. It would apply for emergency use after safety data are in after the third week of November. Pfizer stock and BioNTech rose modestly before the open.

Europe’s aviation regulator said the Boeing 737 Max is safe to fly now after being grounded since March 2019. The jet could resume flights before the end of the year, even though a software fix Europe has demanded may not be ready for two years. Boeing (BA) rose 4% early Friday.

Intuitive Surgical (ISRG) reported third-quarter results late Thursday. Intuitive earnings and revenue fell less than expected, but the robotic surgical system maker did not offer guidance. ISRG stock fell 3.5% before Friday’s open.

Leading Stocks Thursday

On Thursday, the stock market rally opened sharply lower and struggled in the early going amid stimulus deal concerns, rising coronavirus cases and big losses by Fastly (FSLY) and Vertex Pharmaceuticals (VRTX). Fastly stock and Vertex plunged, but the broader impact was limited. Datadog (DDOG) and Veeva Systems (VEEV) briefly undercut buy points but then rebounded higher.

Apple (AAPL), Amazon.com (AMZN), Microsoft (MSFT) and Adobe (ADBE) all continued work on possible handles, which would offer lower entries.

Meanwhile, Zoom Video (ZM) blasted out of a high tight flag. On the flip side, Tesla (TSLA) fell back to its buy point.


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Tesla stock is on IBD Leaderboard, along with Microsoft, Adobe, Veeva and Zoom Video. Amazon stock, Datadog, Apple, Veeva and Zoom Video stock are on SwingTrader. Microsoft stock and Adobe are on IBD Long-Term Leaders. Veeva stock, Amazon and Microsoft are on the IBD 50.

Dow Jones Futures Today

Dow Jones futures rose 0.25% vs. fair value, with Pfizer and Boeing stock providing a slight lift. S&P 500 futures climbed 0.3%. Nasdaq 100 futures were up 0.4%. Remember that premarket action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

President Donald Trump, in a Thursday night town hall event, again urged passage of a coronavirus stimulus bill. Earlier Thursday, Trump said he could go higher than his previously raised offer of $1.8 trillion on a new coronavirus stimulus deal. House Democrats want $2.2 trillion, and still cite differences. Perhaps more important, Senate Republicans want a much-smaller bill.


Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live.


Coronavirus News

Coronavirus cases worldwide reached 39.25 million. Covid-19 deaths topped 1.1 million.

Coronavirus cases in the U.S. have hit 8.21 million, with deaths above 222,000.

While coronavirus cases have ramped up in the U.S. and especially Europe, death rates generally have remained low. The U.K. and some other European nations have been reimposing restrictions to control the spread.

A WHO study said Gilead Sciences (GILD) antiviral remdesivir does not reduce mortality in coronavirus patients. Gilead had questions about the study. Its own research showed remdesivir reduced hospitalization times by five days. President Donald Trump recently took a five-day remdesivir course as part of his coronavirus treatment.

Gilead stock fell slightly.


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Stock Market Rally Thursday

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 28495.58 -18.42 -0.06
S&P 500 (0S&P5) 3483.34 -5.33 -0.15
Nasdaq (0NDQC ) 11713.87 -54.86 -0.47
Russell 2000 (IWM) 162.75 +1.66 +1.03
IBD 50 (FFTY) 39.55 -0.12 -0.30
Last Update: 4:08 PM ET 10/15/2020

The stock market rally opened Thursday with sharp losses, especially on the Nasdaq. But the major indexes rebounded, with the Dow Jones and S&P 500 briefly turning positive before fading again.

The Dow Jones Industrial Average closed down 0.1% in Thursday’s stock market trading. The S&P 500 index dipped 0.15%. The Nasdaq composite sank 0.5%.

Get A Handle On Apple, Amazon

The Dow Jones and other major indexes have pulled back for three straight days. Not surprisingly, many big-cap techs have followed suit and are starting to form possible handles.

A handle offers a lower entry point — 10 cents above the top of the handle. A handle needs at least five days on a daily chart or one week to form, but can run over several weeks. It must be flat to downward-sloping, ideally in light volume. The goal is to shake out weak holders, not see a big money exodus.

Apple stock, Amazon, Microsoft all closed down less than 1%. Adobe stock did fall 1%.

Of course, there’s no guarantee that a handle will form. The share price might spike higher or tumble. And even if there is a proper handle, that doesn’t guarantee a successful breakout. But these are worth watching.

Zoom Video stock popped 5.3% to 536.40, clearing the 529.84 buy point. Zoom is essentially the stock of the year, the ultimate coronavirus play, with massive growth and a 688% year-to-date share price gain.

Tesla stock fell 2.7% to 448.88, just undercutting a 448.98 early entry cleared on Wednesday. On Friday, Morgan Stanley raised its TSLA price target to 333 from 272. Tesla earnings are due on Oct. 21.

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) edged down 0.3%. The iShares Expanded Tech-Software Sector ETF (IGV) lost 0.4%, with Microsoft stock and Adobe key holdings. The VanEck Vectors Semiconductor ETF (SMH) also sank 0.4%.


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Stock Market Rally Analysis

Wednesday’s pullback seemed normal, especially in reaction to Monday’s surprising surge in megacap techs like Apple and Amazon stock. The big losses Thursday morning weren’t great to see, but the major indexes and top stocks came off their lows, with many leaders closing higher.

As we like to say on IBD Live, let’s pull up the weekly chart.

From that perspective, the Nasdaq is in the lower half of its weekly range, but is still heading for yet another weekly gain. The S&P 500 is slightly higher for the week while the Dow Jones is slightly down.

The weekly action doesn’t look great. But it’s not too surprising given the negative news — stalled stimulus talks, coronavirus headlines, the Fastly warning — along with election uncertainty. After several weeks of gains, a “meh” week is fine.

If a number of top stocks fill out handles and then break out in the next week or two, then this week’s market pause will look constructive. But that bullish scenario hasn’t happened yet.

Investors should still be careful about increasing exposure from here. Earnings season is starting to get underway, and adds yet another layer of uncertainty. Buying right ahead of earnings is fraught with peril.

Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.

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