The Dow Jones Industrial Average rallied around 0.4% in midafternoon trade after Senate Majority Leader Mitch McConnell said he sees "hopeful signs" a coronavirus stimulus deal can be struck. Tesla (TSLA) was rallying amid a price target hike, while Boeing (BA) and Intel (INTC) were among the best-performing blue chips.
XRepublican leader McConnell sounded bullish on the Senate floor, saying "compromise is within reach" and that, "We know where we agree. We can do this."
It comes after U.S. House Majority Leader Steny Hoyer told reporters Wednesday he hoped to agree on a coronavirus fiscal stimulus package with McConnell in principle over the next few days.
The upbeat outlook led to broad gains on the stock market today, with winners leading losers by 2-1 on the Nasdaq and by 5-2 on the NYSE.
The comments come as the coronavirus pandemic continues to take its toll. According to Worldometer, confirmed Covid-19 cases in the U.S. since the beginning of the pandemic are now more than 14 million, with the death toll now reaching almost 281,000.
Nasdaq Leads S&P 500
The tech-heavy Nasdaq had an up and down session, but was in the green. It rallied by almost 0.5%. Top performers included DocuSign (DOCU), which was up around 6.5% and Trip.com (TCOM), which was up more than 6%.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 30006.60 | +122.81 | +0.41 |
| S&P 500 | (0S&P5) | 3670.15 | +1.14 | +0.03 |
| Nasdaq | (0NDQC ) | 12396.85 | +47.48 | +0.38 |
| Russell 2000 | (IWM) | 184.75 | +1.86 | +1.02 |
| IBD 50 | (FFTY) | 39.70 | +0.28 | +0.71 |
Last Update: 1:46 PM ET 12/3/2020 |
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The broad-based S&P 500 was lagging the other major indexes, turning in a gain of less than 0.1% at around 1:45 p.m. ET. Winners included American Airlines (AAL), which rose more than 10%, and cruise line stocks Carnival (CCL) and Norwegian Cruise Line (NCLH).
Volume was down compared with the same time Wednesday. Trading fell around by around 5.5% on both the NYSE and the Nasdaq. CAN SLIM investors prefer volume to be higher on an up day.
It was a mixed day for the sectors, with winners and losers finely poised. Energy, industrials and real estate were faring best. The Vanguard Energy Index Fund ETF (VDE) rose almost 2%.
Small caps also made good gains following a tough Wednesday. The Russell 2000 was up by around 1.1%.
Growth stocks were also rallying. The Innovator IBD 50 ETF (FFTY) was down by almost 1%. On the IBD 50, Synopsys (SNPS) was the biggest gainer, gaining more than 5% in volume running 89% above its average pace over the past 50 sessions. Cerence (CRNC) and Tempur Sealy (TPX) also turned in good gains.
Boeing Stock Among Dow Jones Leaders
Boeing was among the best performers, as it turned in a gain of almost 8%. The aerospace giant was boosted by the news Latin America's No. 2 airline will start flying Boeing 737 Max jets next week, the first carrier to do so. Deliveries of the 737 Max to customers should also resume soon. Boeing stock surged past both its 50- and 200-day moving averages on Nov. 9.
Walgreens Boots Alliance (WBA) was the best-performing Dow component however with a gain of more than 8%, while Intel was another strong performer with a rise of more than 2%. The heaviest losers were Walmart (WMT) and Procter & Gamble (PG), though both ceded just above 1%.
Tesla Up Amid Target Hike
Leaderboard stock Tesla stock made progress after rising by almost 5%, though it is off highs. It remains 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. The stock is still up almost 580% so far in 2020.
The stock got a boost after Goldman Sachs analyst Mark Delaney lifted his rating on Tesla stock to buy from neutral and raised his 12-month price target to 780, the highest on Wall Street, from 455.
"We believe that the shift toward battery electric vehicle (EV) adoption is accelerating and will occur faster than our prior view," Delaney said.
It was a mixed day for other EV makers. Tesla rival Nikola (NKLA) moved up more than 2.5%. It is trying to recover some losses 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.
It was a less positive day for Chinese EV maker Nio (NIO), as it slipped around 2%. It is slipping closer to its 50-day line yet still holds a massive gain above its 15.55 buy point. Its declining RS line is a cause for concern, although there's no sell signal.
Cybersecurity Stock Among Breakouts
Cloud cybersecurity stock Okta (OKTA) broke out from a consolidation pattern following an earnings beat. However after gapping up early, it has fallen back below its buy point of 251.28. It has a strong IBD Composite Rating of 84.
The cybersecurity firm reported revenue of $217.4 million, up 42%, topping estimates of $202.7 million. It also earned 4 cents per adjusted share vs. a 3-cent loss in the year-earlier period. Wall Street had expected a 1-cent loss.
Okta's software monitors and manages privileged accounts. Hackers often target employees or management with administrative access to company computer systems.
New issue Allegro Microsystems (ALGM) also broke out, this time from an IPO base. It remains in buy zone after rising above a 27.60 buy point. The firm develops advanced semiconductor devices which provide power and sensing solutions for motion control. IPO bases can result in rich gains, but are also riskier. The stock has a Composite Rating of 83.
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