Dow Jones Gains Over 770 Points, Stock Market Rally Continues, Sanders Quits Presidential Race

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by Teuta Franjkovic · 4 min read
Dow Jones Gains Over 770 Points, Stock Market Rally Continues, Sanders Quits Presidential Race
Photo: Depositphotos

The Dow Jones Industrial Average is actively gaining today as well as many stocks on the market. Meanwhile, U.S. coronavirus cases have topped 400,000

The Dow Jones climbed nearly 800 points on Wednesday following Sanders’ decision to give up and quit his presidential campaign. Stock markets are also doing well today. Meanwhile, White House Health Advisor Anthony Fauci estimated the United States could see a slight outbreak decay next week and New York Mayor Bill De Blasio revealed some positive news. According to him, the coronavirus hospitalization rates in the city begun to stabilize.

Stock leaders as Apple Inc (NASDAQ: AAPL), Inc (NASDAQ: AMZN), Microsoft Corporation (NASDAQ: MSFT) and Tesla Inc (NASDAQ: TSLA) advanced, as the new stock market rally continued. Dow Jones stock Apple (AAPL) rallied 2.13% at 12:59 am ET while Microsoft (MSFT) gained 0.96% at the same time. FAANG stock leader Amazon (AMZN) traded up 0.91% while Tesla (TSLA) grew by 0.65% despite the initial gains on employee pay cuts.

Some of the great performing stocks on Dow Jones are also Raytheon Technologies Corp (NYSE: RTX) that inclined by 7.86%, Boeing Co (NYSE: BA) that went up by 5.41% and American Express Co (NYSE: AXP) that grew by 4.93%, all at 12:52 pm ET.

However, Sanders’ getting out of the race wasn’t exactly unexpected. Last month, a report claimed Sanders would drop out of the 2020 race for the Democratic Party presidential candidate. Now, the Vermont Senator cleared the way for Joe Biden who will face President Donald Trump in November.

The Nasdaq Composite also went on to hit new session highs in midday trade, gaining 1.79% at 1:07 pm ET while the S&P 500 was up 2.36%.

Among exchange-traded funds, Innovator IBD 50 (FFTY) gained 2.12% at 12:56 pm ET. Meanwhile, the Nasdaq 100-linked Invesco QQQ Trust ETF (QQQ) traded 1.57% higher, and the SPDR S&P 500 (SPY) ETF moved up 2.35% at the same time.

NY State Death Toll Reaches 6,268

Governor of New York State Andrew Cuomo said that 779 people died from the COVID-19 since yesterday, the highest daily number since the start of the outbreak. The total death toll climbed to 6,268.

Cuomo stated the New York State would pay out an additional $600 to all those who filed for unemployment, while also extending the period covered by benefits for another 13 weeks to a total of 39 weeks.

New York City Mayor Bill De Blasio asserted on Wednesday that coronavirus hospitalization rates in the city begun to stabilize, adding that New York “now seeing some leveling off” of the COVID-19 pandemic.

However, the mayor warned that the city needs to “double down” efforts to contain the disease and to “stick to the strategies that are working,” claiming “it’s too early” to draw “bigger conclusions” about containing the infection.

FAANG and Some Other Stocks Rise Despite Coronavirus

Facebook Inc (NASDAQ: FB) grew by 2.12% to $172.40. We expect FB shares to take a further beating when the company reports earnings on April 22. Specifically, we expect FB to retest its annual low of $137, which would take it approximately 12% below the April 3 levels, or potentially go lower if FB shares further decline with the market in the next two weeks.

Amazon stock rallied 0.8% in midday trade, as the e-commerce giant looked to extend a winning streak to three sessions. The FAANG leader is moving up the right side of a cup base with a 2,186.05 buy point, according to MarketSmith chart analysis. Be on the lookout for a potential handle, reducing the risk-optimal entry.

Per the IBD Stock Checkup, Amazon stock has a best-possible 99 IBD Composite Rating, placing it in the top echelon of growth stocks. The Composite Rating is designed to help investors gauge the quality of a stock’s fundamental and technical metrics.

Tesla rose by 0.56% at 13:14 pm ET. The electric automaker said it will cut employee pay and furlough hourly workers until it intends to resume production on May 4, according to an internal email.

Among the Dow Jones stocks, Apple stock moved up 2.20%, as the stock continues to move up the right side of a new base. Still, no proper buy point is clear, but the stock’s RS line is near new highs. A stock’s Relative Strength line compares a stock’s price performance versus the S&P 500 index. Many charting services plot RS Line along with the stock’s price, moving averages, etc. The line is derived by dividing the stock price by the S&P 500 Index value.

Software behemoth Microsoft rose by 1.09% in early trade, as it continues its fight to retake the 50-day line.

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