Dow Jones Dips, Nasdaq rallies as technology stocks rebound; House to vote on Stimulus Bill

The major market indices were mixed Friday afternoon as the Nasdaq recovered, but the Dow Jones industrial average slowed losses.

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The Nasdaq rose 1.1%, the S&P 500 rose 0.2% and the Dow Jones industrial average lost 0.9% in the stock market today. Small-cap capitalization followed by the Russell 2000 achieved 1.2%. The volume was higher on both main exchanges by the same time Thursday.

Homeowners today are expected to approve a $ 1.9 billion stimulus bill, which includes $ 1,400 direct checks to most Americans. It then goes to the Senate. But final legislation is unlikely to include a controversial increase in the minimum wage to $ 15 an hour. The current supplementary unemployment benefits are expected to expire in mid-March.

Technical stocks raised the Nasdaq to a 43.6% increase in 2020 for its fifth best year ever. The S&P 500 rose 16.3% and the Dow rose 7.2% last year. Read the big picture for detailed daily market analysis.

Covid-19 update

The Covid-19 pandemic is still gripping the U.S. economy as nationwide blockades reach the year mark. But there are signs of hope as vaccinations begin to flatten in some states.

Cumulative Covid-19 cases worldwide are approaching 114 million with more than 2.5 million deaths, according to Worldometer. In the U.S., cases rose 29 million with nearly 521,000 deaths, although the number of new cases in the U.S. has dropped dramatically in recent weeks.

While the world is in a hurry to administer vaccines, Modern (MRNA) rose 4% to extend Thursday’s advance. On Thursday, the biotechnology reported sales that more than doubled analysts’ forecasts. It also provides an income guide for 2021 for the full year, well above the views. Modern equities test support on its ten-week moving average after falling below a buying point of 178.60 cups.

But Johnson & Johnson (JNJ) gave up 2% in heavy volume to test its 50-day range. An FDA panel is meeting today to vote on whether to recommend the health giant’s vaccination. If the FDA finally gives the green light, J & J’s vaccine will become the third available in the US

J&J shares remain in a potential buyout of a 157.10 flat-base buying point. The buying zone is at 164.96. But all purchases are now riskier, and the market is under pressure.

Dow losers and winners

Salesforce.com (CRM) sank nearly 5% in heavy trading to lower its 50-day moving average and test its 200-day line. According to MarketSmith’s chart analysis, the stock is working on a 21-week consolidation with a buying point of 271.02. This is approximately 19% below enrollment.

Early Friday, the company’s software maker reported Q4 earnings that hit Wall Street targets. But the outlook for the fiscal annual profit for 2022 and the free cash flow guidance was disappointing. Salesforce is expected to acquire Slack Technologies (WORK) in the second quarter of the current financial year.

Among others blue slide losers, Chevron (CVX), Dow Inc. (DOW) and Procter & Gamble (PG) each decreased by more than 2%.

But Microsoft (MSFT) and appeal (AAPL) achieved about 2% each. UnitedHealthUNH and IntelINTC rose 1.7% and 0.9%, respectively.

Apple is on track to stop a four-day losing day after falling below its 50-day line last week. It is now about 15% less. Microsoft is trading near a 232.96 buy point of a level consolidation while testing its ten-week moving average.

Outside The Dow

Consumer electronics retailers, travel bookers and solar supplies led the way among IBD’s 197 industry groups. But gold miners, oil and gas and steel supplies lagged behind.

GameStop (GME) vaulted more than 30% early Friday before falling sharply to a 16% loss. Shares of the video game retailer rose more than 120% this week as Reddit / WallStreetBets retailers appear to be back in business. GME shares soared in the last week of January by 400% amid a short-press rage.

“We are encouraged by our continued resilience and recovery, and are optimistic about the upcoming travel surcharge,” Airbnb said in its earnings report. “However, we still have limited visibility for growth trends in 2021, given the difficulty in determining the rate of vaccination and the associated impact on travel readiness.”

Follow Nancy Gondo on Twitter @IBD_NGondo

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