Dow Jones futures jumped more than 275 points before paring gains amid surging coronavirus cases ahead of the open Monday, as the current stock market pullback continues. S&P 500 futures and Nasdaq futures were also higher early Monday. Dow Jones stock Boeing soared 5% on Max jet news, while Facebook tumbled over 3%.
Blue chip stocks Apple (AAPL) and Microsoft (MSFT) were higher in today’s stock market ahead of the open. Dow Jones stock Boeing (BA) soared on a key regulatory nod for the 737 Max jet. Nike (NKE) moved up about 0.3% among the Dow 30 stocks after Friday’s sell-off.
Stocks to watch Monday include IBD Leaderboard stocks Facebook (FB) and Netflix (NFLX). Coronavirus treatment maker Gilead Sciences (GILD) and IBD SwingTrader stock Spotify (SPOT) were among the stocks on the move in pre-market trade.
DJIA Today: Surging Coronavirus Cases
The Dow Jones futures gained 0.8% vs. fair value ahead of the stock market open Monday, while S&P 500 futures rallied 0.6%. Nasdaq 100 futures edged higher vs. fair value.
U.S. Stock Market Today Overview
Last Update: 5:30 PM ET 6/26/2020
The coronavirus outbreak continues to spread across the U.S. According to the Worldometer data tracker, the cumulative number of confirmed U.S. cases exceeded 2.6 million over the weekend. On Friday, daily new cases topped 47,000, setting a new one-day record. On Sunday, daily new cases rose more than 40,000 for a fourth straight day. However, while daily new cases continue to surge, there hasn’t been a corresponding rise in the number of daily deaths, a key metric to monitor.
The cumulative total of Covid-19 cases confirmed since the start of the outbreak worldwide topped 10 million over the weekend, with more than 500,000 virus-related deaths.
Within the coronavirus stock market rally, the tech-heavy Nasdaq is up 8.7% for the year through Friday’s close. Meanwhile, the S&P 500 and DJIA are down 6.9% and 12.3%, year to date, through the June 25 close.
Coronavirus Stock Market Rally
According to IBD’s The Big Picture, the coronavirus stock market rally remains in an uptrend after rebounding from lows over three months ago on March 23. The major stock indexes confirmed the rebound as a new uptrend on April 2.
Per Friday’s The Big Picture, “A rash of new coronavirus cases in mainly Southern and Southwestern states dominated news headlines the past week. And Friday’s stock market drop reaffirmed that the world’s No. 1 economy is hardly showing any immunity to the most powerful virus in decades.”
Stocks to watch include the top stocks on IBD Long-Term Leaders. The IBD Long-Term Leaders list focuses on companies with stable earnings growth and price performance.
Dow Jones News: Boeing, Nike
Boeing stock looked to snap a four-day losing streak early Monday. Shares pushed more than 5% ahead of the open. On Sunday, Boeing received clearance from the FAA to begin test flights of its 737 Max jet. Test flights could begin as soon as Monday.
Boeing shares are about 55% off their 52-week high after a three-week losing streak.
Dow Jones retail leader Nike was modestly higher ahead of the stock market open Monday, in focus after Friday’s losses. The stock tumbled 7.6% on Friday, ending the session just below the 50-day moving average line, after the company posted a surprise loss for the quarter. Sales also missed analyst targets.
Nike stock is still forming a cup with handle with a 104.79 buy point, according to MarketSmith chart analysis.
Stocks On The Move: Gilead, Spotify
Coronavirus treatment maker Gilead Sciences jumped about 3% in the pre-market session after announcing its pricing plans for its remdesivir drug. The company said it will cost $3,120 for a typical U.S. patient with commercial insurance and will begin charging for the drug in July. Shares are trying to move back above their 50-day line, as a base with an 86.07 buy point continues to take shape.
IBD SwingTrader stock Spotify fell 2% ahead of the stock market open after Guggenheim downgraded the stock from neutral to sell.
Spotify stock is sharply extended from a 160.08 buy point in a double bottom, according to MarketSmith chart analysis.
Stocks To Watch: Facebook, Netflix
On Friday, Facebook stock plunged 8.3% after Unilever (UN) said it will stop advertising on Facebook and Instagram. According to the company’s statement, “Continuing to advertise on these platforms at this time would not add value to people and society. We will be monitoring ongoing and will revisit our current position if necessary.”
Since June 23, the IBD Leaderboard stock has essentially given up the entirety of a 13.8% gain from a 215.38 buy point in a cup with handle after a breakout on May 19. When a stock round-trips a double-digit gain, investors should consider selling to avoid taking a loss on the stock.
FANG member and IBD Leaderboard stock Netflix gave up a 459.07 buy point in a flat base amid Friday’s near-5% decline. Look out for a test of the 50-day moving average line this week. A sharp break of that support level would be a sell signal. Shares ended Friday about 2% above the 50-day line.
According to IBD Leaderboard commentary, “Netflix is below the buy point and its 10-day moving average. It was raised to a full position June 22.”
According to IBD Stock Checkup, Netflix stock has a 98 out of a highest-possible 99 IBD Composite Rating, placing it in the upper tier of growth stocks. The Composite Rating — an easy way to identify top growth stocks — is a blend of key fundamental and technical metrics to help investors gauge a stock’s strengths.
Dow Jones Leaders: Apple, Microsoft
Among the top Dow Jones stocks, Apple edged higher early Monday, as the stock continues its pullback from its record highs set on June 23.
Shares are well extended past a handle’s 319.79 buy point, which offered an add-on entry. The entry was an opportunity for investors to add to their positions. Meanwhile, shares are still in the 20%-25% profit-taking zone from a cup-with-handle’s 288.35 buy point.
Software leader Microsoft inched up Monday morning. Shares are again back in the buy range above a cup-with-handle buy point of 187.61. The 5% buy range goes up to 197.
Bullishly, the stock’s RS line is still at new highs despite the current pullback. The RS line measures a stock’s price performance vs. the broad market.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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