Dow Jones Rises Despite Pressure From This Key Stock; Check Out IBD's Newest Leader - Investor's Business Daily

The Dow Jones Industrial Average held a 60-point gain Wednesday afternoon, as the major indexes sought to recover the prior session's losses.

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The Nasdaq rose 0.6%, the S&P 500 climbed 0.3% and the Dow Jones industrials edged up 0.2% in the stock market today. Small caps tracked by the Russell 2000 outperformed, up 1.6%. Volume was mixed, higher on the NYSE and lower on the Nasdaq vs. the same time Tuesday.

Tech stocks rose early before paring gains. Monday's tech rally helped the Nasdaq regain its 50-day moving average. On May 10, the Nasdaq tumbled 2.6% to close below the line for the first time since March.

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

The U.S. economy is recovering from the Covid-19 pandemic, which triggered nationwide lockdowns over a year ago. But many states are relaxing restrictions, and cases are plateauing or declining in some states as vaccinations continue to roll out.

U.S. Stock Market Today Overview
Index	Symbol	Price	Gain/Loss	% Change
Dow Jones	(0DJIA)	34373.96	+61.50	+0.18
S&P 500	(0S&P5)	4199.86	+11.73	+0.28
Nasdaq	(0NDQC )	13740.21	+83.03	+0.61
Russell 2000	(IWM)	223.10	+3.84	+1.75
IBD 50	(FFTY)	44.38	+0.83	+1.91
Last Update: 1:32 PM ET 5/26/2021

Cumulative Covid-19 cases worldwide have topped 168 million, with more than 3.5 million deaths, according to Worldometer. In the U.S., cases are approaching 34 million with over 605,000 deaths, although the number of new cases and deaths in the U.S. has slowed dramatically in many states.

Dow Jones Winners And Losers

The biggest blue-chip gainers included Nike (NKE), Goldman Sachs (GS) and Walt Disney (DIS).

Nike advanced 2.4% to move further above its 50-day moving average, which it reclaimed Tuesday. It's on track for a third straight up session. Nike stock is shaping a consolidation with a 148.05 buy point, according to MarketSmith chart analysis.

Analysts expect Nike to earn $3.02 a share on revenue of $4.88 billion when the athletic shoe giant reports fiscal Q4 results June 24 after the close.

Goldman stock, up 1%, remains in potential buy range from a 356.95 buy point of a seven-week cup base. The buy zone goes up to 374.80. Goldman has also completed a three-weeks-tight pattern and could make it four this week. For now, the entry is 377.08.

Disney added 0.4% as it aims for a fifth straight advance. It's about 12% off its March 8 peak. Disney stock is working on the right side of a base with a potential buy point at 203.12. Shares are still about 3% below their 50-day line.

But Walgreens Boots Alliance (WBA) stumbled 3% in heavy trade to breach its 50-day line. Amazon (AMZN) is considering opening pharmacies inside its Whole Foods grocery stores, according to Insider. In November, the internet retail giant launched an online pharmacy to deliver prescription drugs in the U.S.

Outside The Dow

Amazon's pharmacy news also weighed on CVS (CVS) and Rite Aid (RAD), which fell a respective 1.2% and 2.5%.

Retail, software and energy stocks led the upside among IBD's 197 industry groups. But drugstore, generic-drug and other medical stocks lagged.

Amazon climbed 0.7% with its other big news today. The company announced it's acquiring iconic film studio Metro-Goldwyn-Mayer for $8.45 billion, a move that Amazon hopes will expand its position in streaming video and increase the value of its Prime rewards program.

Ford Motor (F) surged about 8% in fast turnover to its highest level in years. The automaker announced more spending on electric vehicles and predicted a sharp drop in costs for EV batteries during an investor day.

Ford was added to IBD Leaderboard as a half-size position as it cleared a new consolidation buy point of 13.72. The buy range tops out at nearly 14.41.

Tesla (TSLA) gained nearly 3% Wednesday afternoon, rebounding from Tuesday's slide. The stock reclaimed its long-term 200-day line on Monday. A new base could be forming, but Tesla stock is far away from any new buy point.

Earnings Movers

Dick's Sporting Goods (DKS), highlighted in Wednesday's IBD Live show, soared 15% in heavy volume to a new high after reporting better-than-expected Q1 results. The advance sent the IBD Leaderboard stock past the 20%-25% profit-taking zone from a 73.78 buy point.

In other earnings news, Pinduoduo (PDD) reported Q1 results early Wednesday that topped views. The China e-commerce company reported an adjusted loss of 23 cents per share on revenue of $3.38 billion. Analysts expected a loss of 38 cents on revenue of $3.08 billion.

But Pinduoduo reversed from early gains to fall 7% in heavy trade and is about 42% off its 52-week high. Shares are finding resistance at their 50-day moving average line.

Nvidia (NVDA), which reports after the close, edged slightly higher as it aims to extend its five-day win streak. Analysts expect the graphics-chip designer to earn $3.29 a share on sales of $5.39 billion, according to IBD data.

Follow Nancy Gondo on Twitter at @IBD_NGondo

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