The Dow Jones Industrial Average was rallying as citizens continued voting in Tuesday’s key Senate election in Georgia. Meanwhile Apple (AAPL) fought back after a sell signal, while Boeing (BA) was one of the best-performing blue chips.
EV stocks Tesla (TSLA) and Nio (NIO) drove higher again, while Futu (FUTU) was among a number of breakouts.
Two U.S. Senate seats are up for grabs, and extremely tight polling makes the race too close to call. If the Democrats win both seats they will control the Senate. This will be key for President-elect Joe Biden and his legislative agenda.
But if Republicans can win just one seat they will cling to a slim majority in the chamber. This will ramp up the chances of legislative roadblock considerably, and is seen as Wall Street’s preferred outcome.
Nasdaq, S&P 500 Regain Ground
The Nasdaq was the best-performing major index, gaining more than 0.5%. Top performers included Pinduoduo (PDD) and JD.com (JD), with both China stocks rising more than 10%.
The S&P 500 was faring almost as well, rising by almost 0.5%. Oil stocks stood out, with Marathon Oil (MRO) and Diamondback Energy (FANG) both rising more than 12%.
U.S. Stock Market Today Overview
Last Update: 1:22 PM ET 1/5/2021
Small caps were outperforming the major indexes. The Russell 2000 gained around 1.5%.
Volume was down compared with the same time on Monday. Trading slipped by more than 16% on the NYSE, but was up less than 1% on the Nasdaq. CAN SLIM investors prefer volume to be higher on an up day.
All S&P sectors pushed higher. Energy and materials were the best performers. The Vanguard Energy Index Fund ETF (VDE) rose about 6.5%.
Growth stock were outperforming, with the Innovator IBD 50 ETF (FFTY) surging 1.7%. On the IBD 50 index, Cerence (CRNC) was the best performer, rising 3.3%.
Boeing Stock Helps Dow Jones Lift Off
The Dow Jones Industrial Average was a hair behind the other major indexes, rallying by 0.4%.
Aerospace giant Boeing was one of the best performers, rising by almost 4%. The stock looks to be rebounding from its 50-day moving average.
The component posting the biggest gain was Chevron (CVX), which gained almost 5%. Visa (V) was the biggest laggard, falling almost 2%.
Apple Stock Bites Back
Leaderboard member Apple gained almost 1% Tuesday, MarketSmith analysis shows. The Dow Jones stock is trying to fight back after posting losses for four straight days in succession.
Apple stock had broken out from a cup base buy point of 138.08 last week. But it ended up reversing lower, and has been struggling for momentum. It ended up falling more than 7% below the buy point, triggering a sell signal.
In recent weeks, Apple shares moved above aggressive entries at 125.49 and 122.09. The computing giant was the No. 1-performing Dow Jones stock for 2020. It posted a gain of more than 82%.
Tesla Stock Rises, Nio Reverses
It was another good day for Newly minted S&P 500 member Tesla, as it gained more than 1%. It is on track to post a gain for an eighth day in a row as it continues to climb on strong delivery data. It sits at record highs.
The stock was boosted after it revealed it had delivered 180,570 electric vehicles last quarter. This was above analyst expectations.
The IBD Leaderboard stock remains extended from a 466 proper buy point after breaking out of a cup-with-handle base. Tesla still has a best-possible IBD Composite Rating of 99. The EV leader’s stock rose more than 750% in 2020.
Chinese rival Nio was struggling to drive into the green. While it was positive at one point, it has been struggling for momentum, sliding almost 1%. It’s aiming to make progress for the fourth day in a row and drive further clear of its 50-day moving average. It remains well shy of its Nov. 24 high of 57.20.
Nio gained Monday on strong sales data. The EV maker more than doubled its December sales to 7,007 EVs, the company said Sunday.
Futu Stock Leads Breakouts
Fellow China stock JD.com is in a buy zone after passing a consolidation pattern buy point of 92.87. It also has a best-possible Composite Rating.
Finally PerkinElmer (PKI) broke out of a rare ascending base. The ideal buy point is 150.05. A key positive here is the RS line has just hit a fresh high. PerkinElmer is a leader in coronavirus testing.
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