The Dow Jones Industrial Average rallied after President-elect Joe Biden said he will not immediately remove the tariffs imposed on China by President Trump. A senior Democrat also outlined a time frame for a coronavirus stimulus package to be agreed in principle.
XBoeing (BA) and Chevron (CVX) were among the leading blue chips, while Tesla (TSLA) went into reverse.
Biden told the New York Times he is not going to make "any immediate moves, and the same applies to the tariffs." Biden wants to ensure he has leverage in any future talks with the world's second largest economy.
Meanwhile U.S. House Majority Leader Steny Hoyer told reporters he hoped to agree on a coronavirus fiscal stimulus package with Senate Majority Leader Mitch McConnell over the next few days.
"He and I both agreed that it would be optimal if in fact we get to agreement by the end of this weekend, have that agreement put on paper and memorialized so that we can consider it as early as Wednesday or Thursday of next week," Hoyer said.
Meanwhile, the coronavirus pandemic is continuing 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 278,000.
S&P 500 Leads Nasdaq
The broad-based S&P 500 was the day's best performing major index so far, though it was barely positive with a gain of less than 0.1%. Winners included NetApp (NTAP), which surged more than 10%, and petroleum refiner HollyFrontier (HFC), which rose 8.6%.
The tech-heavy Nasdaq fared less well. Despite rebounding, it was still down 0.2%. Trip.com (TCOM) was the heaviest loser, slipping more than 4%, with EV maker Tesla not far behind.
Volume was down compared with the same time on Tuesday. Trading fell more than 5.5% on the NYSE and plunged almost 27% on the Nasdaq.
It was a mixed day for the sectors, with more losers than winners. Energy, health and communication services were faring best. The Vanguard Energy Index Fund ETF (VDE) rose more than 4%.
Small caps were also struggling, with the Russell 2000 sliding by around 0.3%.
Growth stocks were also rallying, despite lagging the broad indexes. The Innovator IBD 50 ETF (FFTY) was down by almost 1%. On the IBD 50, Horizon Therapeutics (HZNP) was the biggest gainer, rising almost 3%.
Boeing Stock Among Dow Jones Leaders
The Dow Jones Industrial Average made up ground on the other major indexes after a weak start, and even broke even at one point. It remains down 0.1%.
Boeing was among the best performers, as it turned in a gain of more than 2.5%. The aerospace giant has been trading tightly in recent sessions after surging past both its 50- and 200-day moving averages on Nov. 9.
Walgreens Boots Alliance (WBA) and Chevron (CVX) were the best-performing Dow components, with gains of around 4% and 3% respectively. Big losers included Salesforce.com (CRM), which lost more than 8.5%, and McDonald's (MCD), which ceded almost 3%.
Tesla Reverses As EV Rivals Rally
Leaderboard stock Tesla stock hit reverse gear once more as it ceded almost 4%. 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.
It was a better day for EV makers, which are trying to recover from recent losses. Tesla rival Nikola (NKLA) moved up almost 6%. However the stock has been badly damaged since 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 recovered some recent losses as it gained more than 3%. This allowed it to pull further away from its 50-day line and its 15.55 buy point. Its declining RS line is a cause for concern, although there's no sell signal.
Lockdown Stocks Rally
It was a more positive day for lockdown stocks. Zoom Video Communications (ZM) turned in a gain of more than 1.5% as it tried to regain some of its recent big losses. The stock was spanked after Monday's beat-and-raise earnings report lagged earlier coronavirus pandemic-driven boom quarters.
Peloton Interactive (PTON) gained around 2% as it retook its 50-day line, which is an encouraging sign. It was given a boost after Needham analyst Laura Martin reiterated her buy rating and raised her target to 140. Telemedicine stock Teladoc Health (TDOC) also inched up, though by a more moderate 0.3%.
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December 03, 2020 at 01:42AM
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Dow Jones Rallies As Biden Makes China Pledge - Investor's Business Daily
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