The Dow Jones Industrial Average rose in the stock market today, while the S&P 500 and the Nasdaq reached new record highs. Stocks made a strong recovery Wednesday amid reports China launched new measures to support local coronavirus-impacted businesses.
Disney (DIS) stock and Apple (AAPL) stock rose about 1.5% each, lifting the Dow Jones. Over in the Nasdaq 100, Tesla (TSLA) stock and Nvidia (NVDA) stock both rallied after receiving analyst upgrades.
XThe Stock Market Rally Resumes To New Highs
Based on Wednesday's action in the Dow Jones, investors were encouraged as China announced plans to help support coronavirus-hit businesses.
The news came a day after Dow giants Apple and Walmart (WMT) warned of the impact the virus will have on the companies' sales and production capacity. Under Armour (UAA), Tyson Foods (TSN), Boston Scientific (BSX) and Carnival (CCL) are also among the major multinational companies to forecast a virus-related quarterly sales impact.
China's Ministry of Industry and Information Technology said the government would take measures to help businesses identify weak links in their supply chains. Connecting factories with technology companies is one of several steps that Chinese authorities are taking to limit the economic damage of the coronavirus.
Dow Jones Rallies; Nasdaq Hits New High
The Nasdaq traded up over 1% before trimming gains into the close. The tech-heavy index closed up 0.9%, while the S&P 500 advanced 0.5%. The Dow Jones rose 0.4% on the stock market today. Early data shows mixed volume vs. Tuesday, higher on the Nasdaq and lower on the NYSE.
Seven stocks in the Dow were up more than 1%, including IBD Leaderboard stock UnitedHealth (UNH). Apple, Disney, JP Morgan (JPM) and Goldman Sachs (GS) led the blue chip index higher, each gaining more than 1.3%.
Despite the Dow Jones' three-day losing streak, Wednesday's upward action indicates the index may continue higher with its recent rebound off the 10-day moving average.
Additionally, the Innovator IBD 50 (FFTY) ETF rose nearly 0.9%. Solar stocks and chipmakers were top performers among IBD's 197 industry groups.
ChipMakers, Nvidia Stock Soar
IShares PHLX Semiconductor (SOXX) rose more than 2.5% on Wednesday, with Nvidia (NVDA) representing the largest holding in the chip-focused fund.
After reporting better-than-expected earnings last week, Nvidia received an analyst upgrade from Bernstein on Wednesday, which helped boost the stock's price more than 6%. Shares of Nvidia broke above the key psychological 300 price level for the first time ever. Nvidia stock remains 61% above a 188.50 cup-with-handle buy point after a successful test of its 50-day line. The stock is currently part of IBD's Leaderboard list.
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Stocks Breaking Out Today
SolarEdge (SEDG) reports Q1 earnings today after the market close.
SolarEdge stock soared 18% higher Wednesday, ahead of earnings. Analysts expect the Israel-based firm to report EPS of $1.30 on revenue of $415.3 million. After breaking out of a 96.74 cup-with-handle buy point, the stock is extended above its 20%-25% profit-taking zone. According to IBD's Stock Checkup tool, SolarEdge maintains a perfect 99 Composite Rating as well as a strong 97 out of 99 RS Rating.
Solar Edge's move higher was largely influenced by positive earnings from Enphase Energy (ENPH), which reported strong results late Tuesday. Enphase stock launched more than 40% higher on Wednesday. Enphase maintains a strong 97 Composite Rating.
SolarEdge and Enphase are the No. 1 and No. 2 stocks in IBD's energy solar industry group, based on Composite Rating.
Pan American Silver (PAAS) also broke out on Wednesday. The stock is currently in its 5% buy range after trading up nearly 3% on Wednesday. The stock found support at its 50-day line, then broke out of a flat base with a 24.12 buy point. Pan American Silver also reports earnings after the close today.
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