Dow Jones Rebounds After 895-Point Plunge, As Coronavirus Stock Market Correction Intensifies

[Leroy N. Soetoro]

https://www.investors.com/market-trend/stock-market-today/dow-jones-
coronavirus-stock-market-correction-worsens-apple-stock/

The Dow Jones Industrial Average crumbled as much as 895 points early
Friday — before strongly rebounding off its lows — as the coronavirus
stock market correction intensified. The 10-year Treasury yield plunged
below 0.7% — an all-time low — as investors flocked to safer assets.
Meanwhile, the February's jobs report was stronger than expected.

The U.S. economy added 273,000 jobs in February, much higher than the
177,000 estimate. The unemployment rate dropped back to 3.5%.

Dow Jones stock Apple (AAPL) pared losses to 1.3% in today's stock market,
while bank stocks Goldman Sachs (GS) and JPMorgan (JPM) were two big
losers, falling 2% and 1.8%, respectively, Friday morning. Among top
stocks to watch, Adobe (ADBE) and ServiceNow (NOW) are showing strong
relative strength in a very difficult market environment. Costco (COST)
and Okta (OKTA) were key earnings movers Friday morning.

Dow Jones Crumbles Amid Coronavirus News

The Dow Jones industrials cratered as much as 895 points before paring
losses in midmorning trade Friday, as the coronavirus outbreak continued
to spread across the world. The number of confirmed coronavirus cases
topped 100,000.

On Friday, Italy reported an additional 41 coronavirus deaths, bringing
its total up to 148. Elsewhere in Europe, France and Germany reported 138
and 109 new cases, respectively.

The Nasdaq composite fell 1.6% Friday. On Feb. 28, the tech-heavy Nasdaq
found support at its long-term 200-day line, but is once again approaching
that key support level. Previous tests of that level have been successful,
so it's an important level to watch for a potential stock market rebound.
Meanwhile, the index's 50-day line looms overhead as a potential
resistance level.

At around 10:50 a.m. ET, the S&P 500 was down about 1.7%, while the Dow
Jones Industrial Average fell 1.4% after mounting significant rebound
attempts. Among exchange traded funds, Innovator IBD 50 (FFTY) fell 2.5%
Friday morning. The ETF of top growth stocks is rebounding after hitting
its lowest level since early October last week.

Coronavirus Stock Market Correction
Despite a sharp rally in recent sessions, the stock market outlook remains
in correction due to the obvious weakness in the major stock indexes,
according to the IBD Big Picture. Investors should raise cash, avoid new
buys on breakouts and create a watchlist of top stocks to prepare for a
future stock market uptrend.

Stocks to watch include Adobe and ServiceNow, two of the top stocks on the
IBD Long-Term Leaders watchlist. IBD Long-Term Leaders focuses on
companies with stable earnings growth and price performance. Often the
best time to buy these stocks is during market weakness.

Software developer Adobe is trying to find support around its 50-day
moving average line. Shares are still holding about 10% above a 310.10 buy
point in a cup with handle, according to MarketSmith chart analysis.
Shares fell 3% Friday morning.

According to the IBD Stock Checkup, Adobe stock boasts a best-possible 99
IBD Composite Rating. The IBD Composite Rating helps investors easily
measure the quality of a stock's fundamental and technical metrics.

Bullishly, the stock's RS line is just off new highs, signifying sharp
stock price outperformance relative to the broad market. Adobe stock could
be a potential stock market leader if the major stock indexes are able to
firm up.

Meanwhile, ServiceNow stock is also trying to hold its 50-day moving
average line. Shares remain extended past a 284.40 buy point in a cup with
handle.

ServiceNow shares moved down nearly 4% Friday morning.

Costco stock pared losses to 1.3% after better-than-expected fiscal-Q2
results late Thursday. The company also reported a surge in February
numbers due to the coronavirus outbreak.

Shares of the retailer are holding above their 50-day line after nearly
hitting a new high on Thursday.

Cybsecurity stock Okta reversed from sharp losses to edge higher after
strong Q4 results after the stock market close Thursday.

Okta stock is trying to find support near its 50-day line, as the stock
continues its consolidation that started in July.

Among the Dow Jones stocks, 27 components were still lower Friday morning
amid the stock market sell-off. Apple fell more than 1%, in volatile
morning trade. Last week, shares of the iPhone maker hit their lowest
level since early December, but have been rebounding since Feb. 28.

Elsewhere in the Dow Jones industrials, Goldman Sachs and JPMorgan were
two big losers, falling about 2% apiece, as yields slid. Goldman Sachs
stock is more than 22% off its 52-week high.

Meanwhile, JPMorgan stock is more than 20% off its 52-week high and is on
pace for a 6% weekly loss.

Boeing (BA) stock was a rare bright spot, rising more than 1%. Shares hit
a new 52-week low this morning before rebounding.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on
growth stocks and the Dow Jones Industrial Average.



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President Trump has boosted the economy, reduced illegal immigration,
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Senile loser and NAMBLA supporter Nancy Pelosi got "Trumped" on February
5, 2020. "President Trump, Not Guilty."