Dow Jones Jumps, Tech Stocks Surge As Congress Certifies Biden Win; Tesla Tops 800

Daily Updates

The Dow Jones Industrial Average rallied more than 300 points early Thursday, as Congress certified President-elect Biden’s win. President Trump vowed an “orderly transition” of power. Apple stock and Baidu jumped at the stock market open, while Tesla surged to all-time highs on an analyst upgrade.


Among the Dow Jones leaders, Apple (AAPL) rallied 2.4%, while Microsoft (MSFT) moved up 2.7% in today’s stock market. Visa (V) rose 1%, on pace to snap a three-day losing streak.

Tesla (TSLA) surged over 5% on an RBC Capital upgrade to hit an all-time high.

Stocks in or near buy zones in the current stock market rally are Medifast (MED), Pinterest (PINS) and Target (TGT).

Apple, Microsoft, Target, and Tesla are IBD Leaderboard stocks. Pinterest is an IBD SwingTrader stock and was also featured in this week’s Stocks Near A Buy Zone column. Medifast was Wednesday’s IBD Stock Of The Day.

Dow Jones Today: Congress Affirms Biden/Harris Win

On Thursday, the Dow Jones Industrial Average rallied 0.9%, while the S&P 500 gained 1.5%. The tech-heavy Nasdaq composite advanced 2.2% in morning trade to hit an all-time high.

Early Thursday, Congress confirmed the Electoral College vote count, certifying President-elect Joe Biden’s win in the Nov. 3 presidential election. Biden and Vice President-elect Kamala Harris are set to be sworn into office on Jan. 20.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 31131.69 +302.29 +0.98
S&P 500 (0S&P5) 3803.94 +55.80 +1.49
Nasdaq (0NDQC ) 13008.91 +268.12 +2.10
Russell 2000 (IWM) 207.90 +3.37 +1.65
IBD 50 (FFTY) 42.19 +0.97 +2.35
Last Update: 10:38 AM ET 1/7/2021

In a statement tweeted by Trump’s social media director Dan Scavino, President Donald Trump stated, “Even though I totally disagree with the outcome of the election, and the facts bear me out, nevertheless there will be an orderly transition on January 20th … .”

Among exchange traded funds, Innovator IBD 50 (FFTY) traded 2.2% higher Thursday. The Nasdaq 100-linked Invesco QQQ Trust ETF (QQQ) moved up 2.1%. Meanwhile, the SPDR S&P 500 ETF (SPY) rose 1.4%.

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Coronavirus Updates

According to the Worldometer data tracker, the cumulative number of confirmed coronavirus cases in the U.S. topped 21.8 million on Thursday. Total virus-related deaths rose past 370,000.

The cumulative total of worldwide Covid-19 cases confirmed since the start of the outbreak topped 87.7 million Thursday, with more than 1.89 million virus-related deaths.

Coronavirus Stock Market Rally

Looking back at the current uptrend, November was a key month for the stock market. IBD’s The Big Picture flagged the new uptrend following the market’s bullish follow-through day on Nov. 4. Meanwhile, 2021 kicks off with stocks just off all-time highs. Be sure to check out IBD’s Stock Market Outlook for 2021.

Wednesday’s Big Picture discussed the major stock market rotation, “Hundreds of miles north of Washington, D.C., a throng of issues in construction, banking, commodities and other cyclical sectors took over the action on Wall Street.”

Investors should continue to use the stock market’s strength to buy breakouts. Be patient and wait for powerful breakouts instead of chasing extended stocks. If the new breakouts work, then add more exposure. But if breakouts start to fail, then you can back away.

In particular, focus on stocks with strong relative strength. Find them by using the relative strength line. The RS line measures a stock’s price performance vs. the S&P 500. If the stock is outperforming the broader market, then the RS line angles upward. If a stock is performing worse than the broad market, then the line will point lower.

Stocks To Watch: IBD Long-Term Leaders

Stocks to watch include IBD Long-Term Leaders, companies with stable earnings growth and price performance. Veeva Systems (VEEV) is the latest addition to the list, as it tries to regain its 10-week line. Shares rose 3.1% Thursday, approaching a 314.09 buy point in a cup base.

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Dow Jones Stocks To Watch: Visa Rallies

Wednesday’s IBD Stock Of The Day, Visa, is about 2% below a 217.75 buy point in a flat base, according to IBD MarketSmith chart analysis. Shares broke out on Dec. 30, but quickly ran into stout resistance.

Shares moved up 1% Thursday morning.

Stocks In Or Near Buy Zones: Medifast, Pinterest, Target

Wednesday’s IBD Stock Of The Day, Medifast, broke out past a 208.67 buy point Wednesday, ending in the 5% buy zone that tops out at 219.10. Shares rallied 1.6% Thursday morning, pushing the stock out of buy range.

Bullishly, the stock’s RS line hit a new high on the breakout. The relative strength line measures a stock’s price performance vs. the broad market.

IBD SwingTrader stock Pinterest continues to rebound from its 10-week line amid Thursday’s 2.8% rise.

According to IBD Stock Checkup, Pinterest stock shows an 88 out of a perfect 99 IBD Composite Rating. 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.

IBD Leaderboard member Target is still in the buy zone above a 181.27 buy point in a flat base, according to IBD MarketSmith chart analysis. Shares surged 4.7% Wednesday and are at the top of the 5% buy zone that goes up to 190.33. Shares added 1.4% early Thursday.

Per Leaderboard commentary, “The previous pattern was a bit short for a flat base, unless you stretch the definition and count the 25 days since the Oct. 13 closing high. But now the stock has a legitimate flat base to work with. Shares are extended from the 10-week line. The new base is third stage.”

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Baidu Stock

Chinese internet giant Baidu jumped 3% in morning trade Thursday. Shares are about 10% off their all-time high. Baidu plans to sell shares in Hong Kong as soon as the first half of this year, according to Bloomberg, which could raise at least $3.5 billion.

Shares are sharply extended from a 135.54 buy point in a cup with handle and a November test of the 50-day support level. The stock has been on a tear since reports that the company is considering electric car production.

Tesla Stock

IBD Leaderboard stock Tesla notched more all-time highs Thursday morning with a nearly 6% surge. Shares are on pace to extend a win streak to 10 sessions. Early Thursday, RBC Capital upgraded the electric-auto leader from underperform to sector perform with a 700 price target.

Thursday morning, Tesla stock hit a record high at 801.94. Shares have climbed as much as 70% from a 466 buy point in a cup with handle.

Dow Jones Leaders: Apple, Microsoft

Among the top Dow Jones stocks, Apple is trying to rebound after triggering the 7%-8% loss-cutting rule during Monday’s sell-off. Shares fell more than 7% below a cup base’s 138.08 buy point that day, according to IBD MarketSmith chart analysis.

Shares rallied 2.8% Thursday morning, attempting to rebound from Wednesday’s 3.4% stumble. In recent weeks, Apple shares have moved above aggressive entries at 125.49 and 122.09.

Apple is an IBD Leaderboard stock. Per Leaderboard commentary, “The alternate entry is in the lower half of the base but the RS line is improving. Apple nearly doubled from its breakout in April and will be tough to replicate that run. The base is third stage, which is a reason to have lower expectations this time around.”

Software giant Microsoft moved up 2.2% Thursday, as shares continue to trace a new base with a 228.22 buy point. The stock is trying to regain its key 50-day moving average line after giving up that support level on Wednesday.

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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