Dow Jones Near Record Highs As Stocks Rise Ahead Of Fed; Tesla Earnings On Tap

Stocks traded near record highs midday Monday, ahead of earnings this week from Dow Jones stocks Apple and Microsoft, as well as Tesla and other big names, and the Fed’s monetary policy decision on Wednesday.


The Nasdaq rose 0.6%, the S&P 500 climbed 0.2% and the Dow Jones industrials edged 0.1% higher in the stock market today. Small caps tracked by the Russell 2000, up 1.2%, outperformed. Volume swelled on both major exchanges vs. the same time Friday.

In a busy week for earnings, Tesla (TSLA) reports after the close today. Alphabet (GOOGL) and Microsoft (MSFT) are on tap Tuesday, Apple (AAPL) and Facebook (FB) on Wednesday, and Amazon (AMZN) on Thursday.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 34065.58 +22.09 +0.06
S&P 500 (0S&P5) 4188.92 +8.75 +0.21
Nasdaq (0NDQC ) 14096.38 +79.57 +0.57
Russell 2000 (IWM) 228.44 +2.68 +1.19
IBD 50 (FFTY) 47.30 +0.61 +1.31
Last Update: 12:08 PM ET 4/26/2021

That’s just a fraction of the companies slated to report this week. Dow Jones stocks Boeing (BA), Caterpillar (CAT), Chevron (CVX) and McDonald’s will also announce quarterly results.

On Tuesday, the Federal Open Market Committee starts its two-day meeting, with remarks from Fed Chief Jerome Powell due Wednesday afternoon. No major policy changes are expected.

Covid-19 Update

In 2020, tech stocks boosted the index 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%. After a strong start this year, the market is rebounding from a short correction. Read The Big Picture for more detailed daily market analysis.

The Covid-19 pandemic has roiled the U.S. economy, as nationwide lockdowns pass the one-year mark. But many states are relaxing restrictions, and while cases are starting to plateau in some states, there are signs of hope as vaccinations roll out.

Cumulative Covid-19 cases worldwide are approaching 148 million, with more than 3 million deaths, according to Worldometer. In the U.S., cases are close to 33 million with over 586,000 deaths, although the number of new cases in the U.S. has slowed dramatically in many states.

Dow Jones Winners And Losers

American Express (AXP) rallied nearly 5%, climbing past a 150.55 buy point of a cup with handle, according to MarketSmith chart analysis. Shares remain in potential buy range, which tops out at 158.08.

On Friday, the credit card giant reported Q1 earnings that easily beat views, but revenue missed. AmEx earned $2.74 a share on revenue of $9.06 billion. Analysts expected EPS of $1.68 on revenue of $9.24 billion.

Among other blue chip winners, Boeing and Goldman Sachs (GS) added nearly 2% apiece.

Boeing’s 1.8% move lifted the stock back above its 50-day moving average. Last week, it triggered the round-trip sell signal after erasing a 14% gain as it fell below a 244.18 buy point of a cup base. Late Friday, Boeing announced that Grupo Aeromexico had ordered 24 new Boeing 737 aircraft.

Dow stocks down 1% or more included Coca-Cola (KO), Procter & Gamble (PG) and Walmart (WMT).

Outside The Dow

Tesla advanced 1.5% as it adds a handle to a cup base. The ideal buy point is 780.89, or 10 cents above the high. Analysts expect the electric vehicle giant to report Q1 earnings of 79 cents a share on sales of $9.92 billion, according to Zacks Investment Research. That would mark a 216% year-over-year profit gain and 66% higher sales.

Bitcoin rose more than 6% to $53,770 around midday, according to Coindesk, after plunging to as low as $47,079 Sunday night. Early Monday, Bitcoin traded as high as $54,043. The cryptocurrency topped out at $64,829 on April 14.

The Grayscale Bitcoin Trust (GBTC) leapt more than 7% Monday, on pace to add to Friday’s 2.6% rally. It’s 22% off its high after falling below its 50-day line last week.

Cryptocurrency exchange Coinbase (COIN) advanced nearly 3% Monday amid the strength in Bitcoin. Shares hit a post-IPO low Friday and are about 30% off their high of 429.54.

The Innovator IBD 50 ETF (FFTY) gained 1.3%, on track to extend Friday’s 3.6% advance. Shares are about 5% away from a 50.06 buy point of a 10-week consolidation. The ETF could stretch its weekly win streak to five this week.

PLBY Group (PLBY), MarineMax (HZO) and Cerence (CRNC) led the IBD 50 with gains of 5% or more.

Follow Nancy Gondo on Twitter at @IBD_NGondo


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