The Dow Jones Industrial Average fell ahead of President Trump signing the new $900 billion coronavirus stimulus bill. It comes as senior Democrat Chuck Schumer called for ‘much more’ to be done in terms of relief. Apple (AAPL) was the leading blue chip amid speculation over a new Apple car, with electric vehicles stocks including Tesla (TSLA) and Nio (NIO) falling.
The new bill includes measures such as sending $600 one-time checks to individuals, a federal unemployment supplement through mid-March and $284 billion for Paycheck Protection Program small business loans. However, the current deal is not enough for Senate Minority Leader Chuck Schumer (D-N.Y.). Democrats had been pushing for a $2.4 trillion package before the election.
“Those who think that this bill is enough haven’t heard the desperation in the eyes of a small-business owner who is on the brink of ruin,” Schumer said Monday. “They haven’t seen a grandson or granddaughter say goodbye to Grandma on Zoom. So there’s so much more to be done.”
Meantime, Covid-19 cases continue to rise. In the U.S., confirmed total coronavirus cases have topped 18.5 million, with a death toll near 330,000, according to Worldometer. Global cumulative coronavirus cases have passed the 78 million mark, with more than 1.7 million deaths.
Nasdaq Rises, S&P 500 Slips
The Nasdaq was the best-performing major index, though it has slipped from highs and is basically flat. At-home fitness stock Peloton Interactive (PTON) was the clear standout performer, rising by almost 12%. Its spike comes amid its purchase of fitness equipment maker Precor, which is seen as a boon by analysts.
U.S. Stock Market Today Overview
Last Update: 1:34 PM ET 12/22/2020
Volume was mixed compared to the same time on Monday. Trading fell around 25% on the NYSE vs. the same time Monday and rose more than 13% on the Nasdaq.
Most sectors were lagging, with only real estate and technology making gains. Communication services was the biggest loser.
Small caps stood out, with the Russell 2000 spanking the major indexes with its gain of around 0.8%.
Growth stock were also faring reasonably well, with the Innovator IBD 50 ETF (FFTY) gaining around 0.8%. The best performing stock among the IBD 50 was PennyMac Financial (PFSI), which gained more than 6%.
Dow Jones Falls Despite Apple Stock Gain
The Dow Jones Industrial Average was the worst performer among the major indexes, slipping by 0.3%.
This was despite an impressive gain of more than 3% for Apple. It rose on news that it is moving ahead with a self-driving electric car, and is targeting 2024 as the year it produces a passenger vehicle. New battery technology which could reduce costs and increase range are among purported boons.
Apple has been developing an automobile or related technologies since 2014 under the code name Project Titan.
Gains for Apple and Microsoft (MSFT), which was up almost 1%, was not enough to make up for the larger number of losers on the index.
Tesla Stock, Nio Fall
Newly minted S&P 500 member Tesla gave up almost 4% amid the speculation over a new Apple car.
The IBD Leaderboard stock has retreated from a record high amid negative action, but remains extended from a 466 buy point after breaking out of a cup-with-handle base. Tesla still has a best-possible IBD Composite Rating of 99. Tesla stock is up almost 650% so far in 2020.
Chinese player Nio lost around 3.5%. It looks set to end a five day win streak that saw it pull away from its 50-day moving average as it. It remains well shy of its Nov. 24 high of 57.20.
Nikola (NKLA) also remained stuck in reverse gear once again, slipping around 3%.
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IBD 50 Stock Among Breakouts
The positive action around PennyMac Financial saw it break out from a cup-without-handle base at 67.87. The stock has a near-perfect IBD Composite Rating of 98, with earnings in particular a strong suit.
The Switzerland-based company makes products that are used in areas including gaming, video and computing. Customers include consumer electronics distributors and retailers. Also, mass specialty electronics stores and computer and telecommunications stores.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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