Dow Jones Rallies 400 Points To Lead Stock Market Rebound; S&P 500 Hits New High

Stocks bounced back around midday Friday as the Dow Jones Industrial Average rallied more than 400 points and the S&P 500 hit a new high.


The Dow Jones industrials rallied 1.3%, the S&P 500 rose 1% and the Nasdaq added 0.8% in the stock market today. Small caps tracked by the Russell 2000 outperformed, up 1.8%. Volume was lower on both major exchanges vs. the same time Thursday.

Among exchange traded funds, Innovator IBD 50 (FFTY) recovered 1.3%, while the Nasdaq 100-tracking Invesco QQQ Trust (QQQ) climbed 0.4%.

The 10-year Treasury yield rebounded 6 basis points to 1.35% Friday morning, after hitting a low of 1.25% on Thursday before closing at 1.29%.

The U.S. economy continues to recover from the Covid-19 pandemic, which triggered nationwide lockdowns over a year ago. Most states have relaxed restrictions as vaccinations continue to roll out and cases decrease.

Covid-19 Update

Cumulative Covid-19 cases worldwide have surpassed 186 million, with more than 4 million deaths, according to Worldometer. In the U.S., cases are approaching 35 million with over 622,000 deaths, although the number of new cases and deaths in the U.S. has decreased dramatically.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 34864.35 +442.42 +1.29
S&P 500 (0S&P5) 4363.32 +42.50 +0.98
Nasdaq (0NDQC ) 14678.26 +118.47 +0.81
Russell 2000 (IWM) 225.61 +3.91 +1.76
IBD 50 (FFTY) 43.64 +0.68 +1.58
Last Update: 12:04 PM ET 7/9/2021

But Covid-19 vaccine makers moved broadly higher Friday, after data released Thursday by the Centers for Disease Control and Prevention showed U.S. Covid-19 hospitalizations turned higher after a period of decline, due to the spread of the Delta coronavirus variant.

Pfizer (PFE) rose 1.5% to regain its 50-day moving average. It’s about 3% away from a 41.19 buy point of a cup with handle. German partner BioNTech (BNTX) rallied more than 4% to also retake its 50-day line. A rebound off the 10-week moving average could offer a chance to buy.

Johnson & Johnson (JNJ) climbed 0.5% and is about 2% away from a 173.75 buy point of a first-stage flat base. But IBD 50 stock Moderna (MRNA) slipped 0.3%.

Dow Jones Winners And Losers

Dow Inc. (DOW) led the blue chip index with a 2.8% gain in heavy trade. Shares remain stuck below the 50-day moving average, where it’s been since mid-June, after triggering the 7%-8% loss-cutting sell rule from a 67.37 buy point of a flat base.

Financials rebounded Friday along with bond yields, after getting hit hard on Thursday. Goldman Sachs (GS), JPMorgan Chase (JPM), Travelers (TRV) and American Express (AXP) were up more than 2% each.

Goldman recovered its 50-day line and is on pace to halt a five-day losing streak. It’s now back above a 356.95 buy point of a cup base, but triggered the round-trip sell signal last month.

JPMorgan tripped the 7%-8% loss-cutting sell rule last month. It remains below its 50-day line and is about 8% off its 52-week high. Goldman and JPMorgan report earnings next week.

American Express is extended from a 151.56 buy point of a cup with handle, according to IBD MarketSmith chart analysis. The buy zone topped out at 159.14. Shares, up 42% this year, are trading near all-time highs.

Disney (DIS) popped 2% as it aims to retake its 50-day line. Disney stock is about 13% off its 52-week high. The theme parks and media giant is gearing up for a big weekend at the box office as the long-delayed “Black Widow” is set for its theatrical release worldwide today.

Estimates show it could rake in between $80 million and $110 million during opening weekend in the U.S., according to Boxoffice Magazine.

Only one Dow Jones stock, Microsoft (MSFT), sat out the rally. But it was down less than 0.1% as it trades above a new cup base’s 263.29 buy point. Shares are barely back in buy range. The 5% buy zone goes up to 276.45.

Outside The Dow

Over in the IBD 50, Cleveland-Cliffs (CLF), Dlocal (DLO) and Leaderboard stock Snap (SNAP) were among a half-dozen stocks up more than 4% apiece.

Follow Nancy Gondo on Twitter at @IBD_NGondo


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