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Dow Jones Goes For Three Straight As Apple Stock Rises Ahead Of Launch Event

The Dow Jones Industrial Average was off highs midday, but looked on track to extend its gains for a third straight session.

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The Nasdaq rallied 1.4%, the S&P 500 rose 0.9% and the Dow Jones industrials gained 0.5% in today's stock market. Small caps tracked by the Russell 2000 advanced 0.7%. Volume swelled on both major exchanges vs. the same time Monday.

The U.S. stock market had reached new highs following the coronavirus crash. But the market uptrend fell under pressure Tuesday, as the major indexes suffered sharp declines.

The Nasdaq holds a 23% year-to-date gain despite recent volatility, while the S&P 500 was up 5% through Monday's close. The Dow is down 2% and the Russell 2000 is 10% underwater this year. Read The Big Picture for detailed market analysis.

Worldwide coronavirus cases have topped 29.5 million, with more than 934,000 deaths, according to Worldometer. In the U.S., confirmed cases are now above 6.75 million, with the death toll approaching 199,200.

Apple Rises Ahead Of Event

Intel (INTC) led the Dow Jones index with a 2% gain. The chip giant's stock is trying to reclaim its 50-day moving average, after trading below it for most of the past the three months. Shares are 27% off their 52-week high.

Other blue-chip winners up 1% or more included Amgen (AMGN), Apple (AAPL), Microsoft (MSFT) and Saleforce.com (CRM).

Apple, up ahead of its virtual launch event, is extending its Monday rebound off its 50-day line. The iPhone maker is widely expected to introduce Apple Watch 6, which reportedly features blood oxygen level detection and improved battery life, at the event.

Apple stock is sharply extended from a 72.15 buy point of a cup with handle. It's 14% below a Sept. 2 all-time high, as tech stocks came under pressure. Apple is an IBD Leaderboard stock.

Microsoft, up 1.7%, is encountering resistance at its 50-day line. The software giant's stock closed below the support line on Sept. 8 for the first time in three months. It remains well extended from a 180.10 buy point of a cup with handle. Microsoft is a Leaderboard and IBD Long-Term Leader stock.

Tesla Cruises Along

Automakers, internet content, chip and movie-related stocks led the upside among IBD's 197 industry groups. But banks, truck parts makers and gold miners lagged.

Outside the Dow, Tesla (TSLA) powered 6% higher in fast turnover and is on track to extend its win streak to five sessions. CEO Elon Musk is expected to unveil a million-mile battery at the electric-auto maker's Battery Day event next week. The Leaderboard stock fell to its 50-day line last week but found support and is rebounding. It's about 11% off its high.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 28093.74 +100.41 +0.36
S&P 500 (0S&P5) 3411.10 +27.56 +0.81
Nasdaq (0NDQC ) 11199.05 +142.40 +1.29
Russell 2000 (IWM) 153.93 +0.85 +0.56
IBD 50 (FFTY) 37.15 +0.37 +1.01
Last Update: 11:58 AM ET 9/15/2020

But rival Nikola (NKLA) crashed 8% in heavy trade. Short-seller Hindenburg Research's claims that the electric-car maker is engaged in "securities fraud" have triggered a Securities and Exchange Commission probe. Nikola stock is more than 60% off its 52-week high.

Among chip leaders, Taiwan Semiconductor (TSM) surged more than 5% to break out past an 84.10 buy point of a flat base, according to MarketSmith chart analysis. Shares remain in potential buy range, which tops out at 88.31.

In IPO news, DraftKings (DKNG) reversed from an early loss to a 1.3% gain, marking a new high. On Monday, shares soared 17% to clear a 44.89 buy point of a cup base after the online sports platform announced a deal with Disney (DIS)-owned ESPN. DraftKings is about 10% extended from the entry.

The Innovator IBD 50 ETF (FFTY) advanced 1.3% to climb back above its 50-day line. Digital Turbine (APPS) surged 11%, while Horizon Therapeutics (HZNP), Big Lots (BIG) and Netflix (NFLX) added more than 3% each.

Follow Nancy Gondo on Twitter at @IBD_NGondo

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