The Dow Jones Industrial Average rallied as Senate Majority Leader Mitch McConnell blocked a rapid impeachment trial for President Donald Trump. It came as House Speaker Nancy Pelosi stepped up the bid to charge the president.
McConnell Blocks Early Trump Impeachment
Pelosi cranked up the pressure on President Trump when she blasted him on the House floor for his behavior leading up to last week’s deadly assault on Capitol Hill. The chamber is due to vote on whether to send an article of impeachment to the Senate on Wednesday.
“We know that the president of the United States incited this insurrection, this armed rebellion, against our country,” Pelosi said. “He must go. He is a clear and present danger to the nation that we all love.”
A number of Republicans are expected to back the measure, including Rep. Liz Cheney of Wyoming, the third most senior GOP member in the House. If the move goes forward, Trump would become the first president to be impeached twice.
U.S. Stock Market Today Overview
Last Update: 2:44 PM ET 1/13/2021
However, McConnell is refusing to aid the impeachment bid. An aide told the Wall Street Journal that he called Senate Minority Leader Chuck Schumer’s office to say he will not recall the Senate before its scheduled Jan. 19 return date. This means Trump likely cannot face trial before President-elect Joe Biden takes office.
Impeachment could bar Trump from becoming president again, while he could also lose the perks given to former presidents. These include lifetime Secret Service protection.
Nasdaq, S&P 500 Rally
The Nasdaq was the best-performing major index after turning in a gain of around 0.7%. Top performers included at-home fitness play Peloton Interactive (PTON), which rose more than 6%, and Zoom Video Communications (ZM).
Volume was mixed compared with the same time on Tuesday. It rose by around 1% on the Nasdaq and fell by around 6% on the NYSE.
The sectors were finely poised, with slightly more winners than losers. Utilities and real estate were faring best.
Small caps were lagging the major indexes, with the Russell 2000 slipping by around 0.2%.
Meanwhile, growth stocks were also lagging, with the Innovator IBD 50 ETF (FFTY) slipping 0.2%
Intel Stock Jump Aids Dow Jones
The Dow Jones Industrial Average was making progress, though its gain of 0.2% meant it was lagging the other major indexes.
The biggest mover of the day by far was Intel, though it was giving up some early gains despite rising almost 8%. The stock gapped up in big volume on the news that it is replacing fiscally minded Chief Executive Bob Swan with a new technology-focused leader. The move saw the stock pull clear of its 200-day line.
Current VMware (VMW) CEO Pat Gelsinger is to take the reins. He has more than four decades of technology and leadership experience, including 30 years at Intel. He will guide the firm’s move from making CPUs to manufacturing XPUs, which encompasses a broader range of processors.
Apple stock was also enjoying an up day, rising by almost 2%. It previously triggered the 7%-8% sell rule, which invalidated a cup-base breakout. Apple is forming a new handle.
Airbnb Stock Hits Buy Zone
Breakouts were scant on Wednesday, but one name making a noteworthy move was Airbnb.
The stock moved into buy zone after rising above an IPO-base buy point of 175.07. But the stock has since slipped out of buy zone.
The relative strength line has just hit a new high, which is encouraging. Airbnb stock holds an IBD Composite Rating of 20, but this is not an ideal guide as it is such a young stock.
Airbnb stock has been trading since Dec. 10. It is up around 150% on its IPO price of 68 per share.
The firm said Wednesday it will be canceling and blocking future reservations in the Washington, D.C., metro area during the week of Joe Biden’s presidential inauguration. Airbnb will reimburse both those who had booked stays and the hosts who would have been renting out their properties.
GM Stock Higher Again As Tesla Rallies
General Motors is just above a buy zone after rising by more than 2%. It cleared a 46.81 cup-base buy point on Tuesday, according to MarketSmith chart analysis
GM stock is breaking new ground after it doubled down on its move into the electric-vehicle market. Its plans include a new electric van, which will go on sale later this year.
IBD Leaderboard stock Tesla reversed modestly higher to post a gain of around 0.5%.
Tesla has flashed several signs of a climax top amid a sharply vertical run over the past few weeks, Friday’s IBD Stock Of The Day column said.
The firm’s Chinese rival Nio made progress, rising 0.4%. It is extended after breaking out from a 57.30 buy point in a short cup base on Friday. It got a big boost after unveiling its new Nio ET7. Deliveries are due to begin in the first quarter of 2022, though preorders began Saturday.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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