Dow Jones Reverses As Disney Leads, But Apple, Microsoft Get Hit; Travel Stocks Break Out

The Dow Jones Industrial Average swung into positive territory after tumbling more than 200 points early Monday, as Disney rallied and Microsoft fell.


The Nasdaq slumped 1.6%, the S&P 500 fell 0.5% and the Dow Jones industrials edged 0.1% higher in the stock market today. Small caps tracked by the Russell 2000 were nearly flat. Volume was slightly higher on both major exchanges vs. the same time Friday.

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

The Covid-19 pandemic continues to roil the U.S. economy, as nationwide lockdowns approach the one-year mark. But there are signs of hope as vaccinations roll out and cases start to plateau in some states.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 31510.44 +16.12 +0.05
S&P 500 (0S&P5) 3885.60 -21.11 -0.54
Nasdaq (0NDQC ) 13646.99 -227.47 -1.64
Russell 2000 (IWM) 225.52 +0.33 +0.15
IBD 50 (FFTY) 47.92 -0.98 -2.00
Last Update: 11:58 AM ET 2/22/2021

Cumulative Covid-19 cases worldwide have topped 112 million with nearly 2.5 million deaths, according to Worldometer. In the U.S., cases are now approaching 28.8 million with more than 511,000 deaths.

Dow Winners And Losers

Disney (DIS) rallied more than 4% in heavy trade, on track for a new closing high. Disney stock remains in potential buy range from a 183.50 buy point of a five-week flat base, according to MarketSmith chart analysis. The buy zone tops out at 192.68.

Dow Inc. (DOW) gained nearly 3% to break out past a 61.41 buy point of a six-week cup base. Volume was running about 35% higher than normal.

Chevron (CVX) surged 3% to an eight-month high in twice normal trade. Other blue chip winners included American Express (AXP) and Caterpillar (CAT), up more than 2% apiece.

On the downside, Apple (AAPL), Intel (INTC), Nike (NKE) and Microsoft (MSFT) fell more than 2% each.

Apple stock is below its 10-week moving average after breaching the support level last week. But a strong rebound back above the level would be bullish for the stock’s prospects. The stock triggered the 7%-8% loss-cutting sell rule on Feb. 18 as it fell more than 7% below a 138.89 buy point of a cup with handle.

Microsoft is holding above its 10-week line and a 232.96 buy point. It remains in potential buy range, which goes up to 244.61.

Outside the Dow

Solar, automakers, software and other computer-related stocks led the downside among IBD’s 197 industry groups. But oil and gas, airline, and hotel stocks outperformed.

In the automaker group, Tesla (TSLA) skidded more than 4% in above-average volume to for a third straight decline. On Sunday, the electric vehicle maker pulled the Model Y Standard Range Plus from its website.

Tesla stock is breaking support at its 50-day line for the first time since mid-November. It’s now about 17% off its 52-week high, though it remains sharply extended from a 466 buy point of a cup with handle.

Travel stocks have seen a recent resurgence as coronavirus cases flatten out and vaccines get distributed. That’s boosting hopes that people will be able to travel again, once the pandemic is more under control.

Travel Stocks Break Out

Air Lease (AL) rose 4% to break out past a 46.14 buy point of a flat base. Volume remains in potential buy range, which goes up to 48.45.

Marriott Vacations Worldwide (VAC) advanced 3%, clearing a 157.77 buy point of a second-stage flat base in triple normal trade. It’s still in the buy zone, which tops out at 165.66.

Other travel-related stocks breaking out Monday included cruise ship operator Carnival (CUK), up 8% in heavy volume. Shares are now extended from a 21.01 buy point of a cup base and near a one-year high. Airline stocks also outperformed, helped by positive comments from Deutsche Bank. IBD’s airline group was up more than 4%.

Las Vegas Sands (LVS), up 3% in busy trade, broke out past a 60.98 entry of a 14-week consolidation. Volume was more than two times heavier than usual.

Follow Nancy Gondo on Twitter at @IBD_NGondo


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