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Dow Jones Reverses Higher As Boeing, Microsoft Rally, And Coronavirus Pace Slows

Key indexes held solid gains midday after reversing from an early drop. Boeing, Microsoft and Visa gave the Dow Jones Industrial Average a boost.

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The Nasdaq rallied just shy of 0.6%, the S&P 500 rose 0.3% and the Dow Jones industrials climbed 0.2% in the stock market today. Small caps tracked by the Russell 2000 were up 0.3%. Volume was running lighter on both exchanges vs. the same time Friday.

On Sunday night, China updated its coronavirus figures to 40,171 confirmed cases with 908 deaths. Total cases are up to 40,484 and 910 deaths, according to the World Health Organization. While the number continued to rise, the pace has reportedly slowed, though the virus' impact is big.

"The coronavirus infection rate has slowed substantially over the past two weeks but is still rapid enough to allow only partial reopening of Chinese factories," JPMorgan said in a note Monday. For instance, Apple (AAPL) was slightly underwater, as China rejected a request from iPhone producer Foxconn to resume full production amid the coronavirus.

Among other Dow Jones stocks, Boeing (BA) lifted 2.3% in above-average trade. Shares are back above their 50-day moving average but remain 22% off their 52-week high.

Microsoft (MSFT) gained 1.7% in heavy volume to a record high. Shares are far extended from a 142.47 buy point of a flat base cleared in October. Microsoft's 98 Composite Rating, which gives investors a quick way to gauge a stock's key fund ownership, fundamental and technical metrics, is second best in the seven-stock desktop software group, just behind Adobe (ADBE).

Visa (V) and Coca-Cola (KO) added more than 1% each. Cisco Systems (CSCO), which reports after the close Wednesday, climbed 0.6%. Analysts expect the Dow stock to earn 76 cents a share, according to FactSet, on $11.98 billion in sales. Shares are about 17% off their 52-week high.

Dow Jones Oil Stocks Slide

Exxon Mobil (XOM), off 1.2%, was the biggest loser on the Dow. It's trading at its lowest level since 2010. Light sweet crude prices slid 0.9% to $49.86 a barrel. Chevron (CVX) gave up 0.4%.

That weighed on oil ETFs. SPDR S&P Oil & Gas Exploration & Production (XOP) skidded nearly 2%, while VanEck Vectors Oil Services (OIH) dropped 1.9%. IShares U.S. Energy (IYE) lost 0.9%.


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Drugstore, internet retail and movie-related stocks were some of the biggest gainers among IBD's 197 industry groups. But oil, generic drug and airline stocks lagged.

In the movie group, Roku (ROKU) stock rallied more than 5% in busy trade. It may be shaping a base, but is still about 26% off its 52-week high. The streaming device maker reports Q1 results Thursday.

Also in the group, Netflix (NFLX) rose 1.6%. The stock has formed a new handle with a 359.95 buy point. Its 96 Composite Rating is the best in the 18-stock group.

Netflix and Microsoft were among leading growth stocks in the IBD 50. The Innovator IBD 50 ETF (FFTY) was up nearly 1% in today's stock market.

Nvidia (NVDA), which reports after the close Thursday, rallied 3% to a new high in twice normal trade. Shares are well extended from a 188.50 buy point of a cup with handle, MarketSmith chart analysis shows. RBC raised its Nvidia price target to 301 from 251. Analysts expect the chip designer and IBD Leaderboard stock to earn $1.66 a share on $2.96 billion in revenue.

Follow Nancy Gondo on Twitter at @IBD_NGondo

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