The Dow Jones slips 200 points despite strong GDP data; Apple’s earnings, Pinterest Skyrockets 39%


The Dow Jones Industrial Average lost more than 200 points amid strong US GDP figures early Thursday after Wednesday’s stock market sell-off. Apple’s earnings are being delayed, while Alphabet, Amazon, and Facebook will also report earnings after the shutdown. Tesla stayed over 1%, while Pinterest skyrocketed 39% on earnings.



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Dow Jones Leaders, Apple (AAPL) jumped 2.5%, while Microsoft (MSFT) rose 1.1% in today’s stock market. During this, Tesla (TSLA) advanced more than 1% shortly after the stock market opened.

Stocks include early Thursday Pinterest (PINS) and Dow Jones Stock Visa (V). Both reported better-than-expected earnings.

In a busy income day for tech stocks, Alphabet (GOOGLE), Adventuress (AMZN), Apple and Facebook (FB) will report their quarterly results after closure.

Buy shares in the stock market rally or are the nearby areas JD.com (JD) and chewy (CHWY).

JD.com, Microsoft and Tesla are all IBD leaderboard stocks.

Dow Jones Today: GDP Beats Estimate

The Dow Jones Industrial Average moved up 0.2%, while the S&P 500 rose 0.6%. The Tech-Heavy Nasdaq Composite reported a 1.1% drop in morning trading.

The Commerce Department released its GDP report at 8:30 am, stating that GDP grew 33.1% in the third quarter, better than estimates, with a record-breaking decline in Q3 as the economy collapsed with a coronovirus lockdown in Q2.

Among exchange-traded funds, innovator IBD 50 (FFTY) rose 1.2% on Thursday. The Nasdaq 100-linked Invesco QQQ Trust (QQQ) ETF traded up 1.2%. Meanwhile, the SPDR S&P 500 ETF (SPY) rose 0.4%.

Amid the rally of the coronovirus stock market, the tech-heavy Nasdaq is up 22.6% for the year through Wednesday’s close. Meanwhile, the S&P 500 is up 1.2%, while the Dow is down 7.1% year-over-year, close to 28 October.

Coronavirus update

According to the WorldMeter data tracker, the cumulative number of confirmed coronovirus cases in the US topped 9.1 million on Thursday. Total virus-related deaths increased by 233,000.

The cumulative total confirmation of Kovid-19 cases began worldwide. The outbreak began on Thursday at 44.8 million, with more than 1.18 million virus-related deaths.

Coronavirus stock market rally

According to IBD’s The Big Picture, the coronovirus stock market rally has started to falter amid heavy institutional sales.

Wednesday’s Big Picture warned that “the stock market faced a drastic round of selling on Wednesday, a day after the Dow Jones Industrial Average closed below its Sept 30 follow-through day low. He and himself There was another bad sign. For a stock market that has seen an increasing amount of them recently. Sales actually picked up at the end of the session. ”

An increase in pressure means investors need to be more cautious, but not entirely for cash. Look closely at the watch selling signs. Be sure to sell any stock that falls 7% or 8% off your purchase price, and 3% or even 4% if you want to raise cash.

Avoid buying stocks for now, unless the breakout is exceptionally good. The best candidates are those who proved to be the most resilient during the recent stock market weakness. Keep a close eye on stocks with strong relative power lines. These ideas can become stock market leaders.

Use the Marksmith features like RS Line Blue Dot to easily spot such stock candidates. The RS line Blue Dot is assigned to stocks whose RS lines are setting new highs while the stock is grounding or breaking.

Stocks to watch include IBD long-term leaders, companies with stable income growth and price performance.


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Dow Jones Earnings: Visa

Visa expects better fiscal fourth quarter results late Wednesday. The company earned $ 1.12 per share, as revenue fell 17% to $ 5.1 billion. Payment volume increased 4%.

Shares of the payment processor rose more than 1% in morning trading, but fell to around 17% of their 52-week high.

Apple earnings

Apple, the leader of the Dow Jones, gained 2.5% after the company’s earnings results. Wall Street forecasts EPS of 69 cents in its fiscal Q4, up 9% from the same quarter a year earlier, to $ 63.39 billion, down 1%.

Apple dropped 4.6% on Wednesday, pulling off a two-day win streak. According to MarketSmith chart analysis, shares fell below their 50-day moving average line.

The blue-chip giant is the No. 1 performing Dow Jones stock for 2020, a 51.5% advance through Wednesday’s close. Recently added dow jones 30 Salesforce.com (CRM) is the No. 2 artist with 46.6% year-on-year advances.

Amazon earnings

Wall Street expects Amazon earnings to grow 72.6% to $ 7.30 per share as revenue rises 32.8% to $ 92.92 billion. This year Amazon has seen strong growth as the epidemic has accelerated online shopping.

Amazon stock is tracing a cup with a 3,496.34 buy point.

Set to report the alphabet, Facebook

According to the IBD’s Investment Action Plan, Alphabet and Facebook are set up to report after Thursday and Thursday.

EPS is expected to grow 12.7% to $ 11.40, as revenue will increase 7% to $ 35.36 billion. The shares are close to making a cup with a handle with a 1,634.22 buy point, but are below their 50-day line.

Social media giant Facebook is expected to post a 9% drop in revenue of $ 19.67 billion to 12.6% at $ 1.93. Wall Street hopes that Facebook will benefit from a better digital ad spending environment, which will overcome the epidemic-related headwind.

Facebook’s stock is battling for support for its 50-day line following Wednesday’s sharp decline.

Stock Market Earnings: Pinterest

Pinterest skyrocketed to 39% after the company’s third-quarter results late Wednesday, which knocked down Wall Street’s previous estimates, partially offset by strong user growth. The company reported adjusted earnings of 13 cents a share on revenue of $ 443 million.

The stock hit a record high on Thursday.

Buy zone near stock: Chewy, JD.com

After Wednesday’s strong breakout move, Chewy is in the 5% buy zone, up from a point of 70.82 in a cup. The purchase area goes to 74.36.

According to IBD Stock Checkup, CHWY stock has 86 of the best-possible 99 IBD composite ratings. The overall rating – an easy way to identify the top growth stocks – is a mix of fundamental and technical metrics important to help investors reduce stock strength.

Chevy Wednesday was IBD stock for the day.

JD.com is contacting a cup with 85.49 buy point of the handle. The stock is about 6% off new entry after Wednesday’s drop of 3.5%.

According to the IBD Leaderboard comment, “JD.com’s base has been folded into a cup with a handle. It’s one half on the leaderboard. The relative power line has already created a new height, a boom for the next breakout. Is a sign of. ”

JD.com was featured in this week’s Stocks Near a By Zone column.


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Tesla stock

Tesla stock dropped support of its 50-day line amid a 4.4% drop on Wednesday. The shares are nearly 20% off their 52-week highs, as they form a new base with 466 buy points. Tesla rose more than 1% in early Thursday.

According to the IBD Leaderboard comment, “The new base is a later stage, moving beyond the cup-in-handle bases and a high, tight flag, which is also counted as the base. Therefore, the latest pattern has a higher risk is.”

Dow Jones Leaders: Microsoft

Among the top stocks of the Dow Jones, software giant Microsoft was seen to rebound from Wednesday’s 5% drop. The shares advanced 1.1% in morning trade, but remained square below their 50-day line.

As of the year to date, Microsoft is one of the top Dow Jones shares, a 35.2% gain through Tuesday’s close.

Be sure to follow Scott Lehtonen on Twitter @IBD_SLehtonen For more on growth stocks and Dow Jones futures.

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