Dow Jones Rallies 300 Points On Powell Comments; Boeing, Disney Stocks Soar - Investor's Business Daily

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Key market indexes reversed higher midday Wednesday, as the Dow Jones Industrial Average swung from a 100-point loss to a 300-point gain.

The Dow Jones industrials rallied 0.7%, the S&P 500 rose 0.6% and the Nasdaq climbed 0.3% in the stock market today. Small caps tracked by the Russell 2000, up 1.9%, outperformed. Volume was lower on both major exchanges vs. the same time Tuesday.

Stocks turned higher as Federal Reserve Chairman Jerome Powell reiterated his Tuesday comments that inflation and employment remain well below the central bank's objectives. That means the Fed is likely to continue to buy bonds to bolster the U.S. economy.

Tech stocks boosted the Nasdaq to a 43.6% gain in 2020 for its fifth best year ever. The S&P 500 rose 16.3% and the Dow added 7.2% last year. Read The Big Picture for detailed daily market analysis.

Covid-19 Update

The Covid-19 pandemic continues to roil the U.S. economy, as nationwide lockdowns approach the one-year mark. But there are signs of hope as vaccinations roll out and cases start to fall in some states.

U.S. Stock Market Today Overview
Index	Symbol	Price	Gain/Loss	% Change
Dow Jones	(0DJIA)	31799.61	+262.26	+0.83
S&P 500	(0S&P5)	3906.61	+25.24	+0.65
Nasdaq	(0NDQC )	13515.25	+50.05	+0.37
Russell 2000	(IWM)	226.53	+4.77	+2.15
IBD 50	(FFTY)	46.52	-0.01	-0.02
Last Update: 12:02 PM ET 2/24/2021

Cumulative Covid-19 cases worldwide have topped 112.8 million with nearly 2.5 million deaths, according to Worldometer. In the U.S., cases are now approaching 29 million with more than 515,000 deaths, although the number of new cases in the U.S. has slowed dramatically in recent weeks.

As countries rush to administer Covid-19 vaccines, Johnson & Johnson (JNJ) rose 1.3%, on pace to halt a three-day slide. Shares found support at their 50-day moving average on Tuesday and are back in buy range from a 155.57 buy point of a flat base. The buy range goes up to 163.35.

An FDA advisory panel is meeting Friday to assess the vaccine and submit a recommendation to the Food and Drug Administration. J&J said the FDA found its vaccine to be 66% effective in protecting against Covid-19 infections and 88% effective in preventing severe cases.

Dow Winners And Losers

Boeing (BA), up 5% in fast turnover, led the Dow. Shares are building the right side of a 12-week consolidation, according to MarketSmith chart analysis. Boeing stock is about 9% away from a 244.18 buy point. But a 4 Composite Rating and 1 Earnings Per Share Rating are quite weak.

The Federal Aviation Administration is mandating engine inspections before Boeing 777 jets outfitted with a certain Pratt & Whitney engine can fly again. On Saturday, a Boeing 777 and 747 suffered midair engine fires, sending debris to the ground.

Among other blue chip winners, Caterpillar (CAT), Dow Inc. (DOW), Chevron (CVX) and Goldman Sachs (GS) gained more than 2% each.

Disney (DIS) added 1.5% in heavy volume to a new high, on track to extend its win streak to four. Disney stock is extended from a 183.50 buy point of a flat base. The buy zone topped out at 192.68.

But Home Depot (HD) stumbled more than 4% in heavy trade. On Tuesday, shares lost 3%, even though the home improvement retailer reported better-than-expected Q4 results before the market open. It didn't provide an outlook.

Home Depot stock has been working on a flat base with a 293.05 buy point, though it's now given up its 200-day moving average line.

Outside The Dow

Oil and gas, automaker and airline stocks led the upside among IBD's 197 industry groups. But software, utilities, and online and other retailers lagged.

Square (SQ) plunged 8% in heavy trade early Wednesday, before paring its loss to 5%. Shares, on track for a third straight drop, found support at the 50-day line. The point-of-sale payments company reported strong Q4 earnings, but revenue and gross payment volume missed Wall Street targets. Square also disclosed a new $170 million investment in Bitcoin.

Bitcoin rebounded 4% early Wednesday, briefly climbing back above $51,000 before paring gains. The price of Bitcoin traded around $49,600 in midday trade, according to CoinDesk. Bitcoin topped out at $58,332 on Sunday and dived below $45,000 on Tuesday, before recovering.

Grayscale Bitcoin Trust (GBTC) rallied 6% Wednesday, after two days of declines.

Follow Nancy Gondo on Twitter at @IBD_NGondo

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