Dow Jones jumps 200 points on inflation data, but Covid shares plunge

The Dow Jones Industrial Average rose nearly 200 points on Wednesday afternoon to hit a new high as July inflation data showed signs of cooling.

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The Dow Jones Industrials rose 0.6%, the S&P 500 rose 0.2% and the Nasdaq fell nearly 0.3% in today’s stock market. Small caps followed by the Russell 2000 lost 0.2%. Volume was mixed, down on the NYSE but up on the Nasdaq from same time Tuesday.

Among exchange-traded funds, Innovator IBD 50 (FFTY) fell 1.1%, while the Nasdaq 100-tracking Invesco QQQ Trust (QQQ) fell 0.4%.

The consumer price index rose 5.4% in July compared to a year ago, less than expected, with a 0.5% increase on a month-over-month basis, as the economic recovery was accelerating. The US Department of Labor’s CPI measures what consumers pay for a selected basket of goods and services, including groceries, clothing, dining, entertainment, and vehicles.

The US economy continues to recover from the Covid-19 pandemic, which triggered nationwide lockdowns over a year ago. Most states have relaxed restrictions as vaccinations continue and cases decline. But mask warrants are coming back in some areas as the delta variant spreads.

Snapshot of the US Stock Market Today
Index	symbol	Price	Loss of profit	% Change
Dow jones	(0DJIA)	35466.18	+201.51	+0.57
S&P 500	(0S & P5)	4443.95	+7.20	+0.16
Nasdaq	(0NDQC)	14748.26	-39.83	-0.27
Russel 2000	(IWM)	222.20	-0.40	-0.18
MICI 50	(FFTY)	45.62	-0.51	-1.11
Last Modified: 1:34 PM ET 8/11/2021

Cumulative Covid-19 cases worldwide have exceeded 205 million, with more than 4.3 million deaths, according to Worldometer. In the United States, cases are approaching 37 million with nearly 635,000 deaths.

Although the number of new cases and deaths in the United States has dropped significantly, cases are on the rise again in some states due to the delta.

Growth stocks to watch

Unity software (U) jumped nearly 9% in significant volume after second-quarter results for the design software maker exceeded views on Thursday night. Unity reported a loss of 2 cents per share on revenue of $ 263.6 million. Rank action surpasses the buy point of 111.84 for a cup with handle, according to graphical analysis from IBD MarketSmith. An entry 115.60 is also valid.

In IBD 50, Reached (UPST) easily dominated as it widened a gap and climbed 21% in revenue fast. The cloud-based lending platform posted strong results in the second quarter and moved towards higher-than-expected sales in the third quarter. Upstart is building the right side of a cup base with a buy point of 191.9.99. A lower buying point could emerge if the action adds a handful.

Atkore (ATKR) rose 5% in intense trading to a new high. Stocks are now slightly elongated by a buy point of 90.18 from a compensated cut base on Tuesday. The buy range peaked at 94.69. Atkore leads the group of 42 construction products stocks with a composite rating of 99 and a rating of 99 earnings per share. It is featured in this week’s Breakout Stocks column.

NortonLifeLock (NLOK) rose 8% in quick trades to lead the S&P 500. On Tuesday evening, the security software leader announced it would buy Avast, a Czech cybersecurity firm, for $ 8 billion.

But the Covid-19 vaccine maker Modern (MRNA), down 17% in significant volume, was the biggest loser of IBD 50. European drug regulators are investigating three possible new side effects of Moderna and Pfizer / BioNTech’s coronavirus vaccines, reported Reuters. Moderna’s stock remains strongly expanded from a point of purchase of 189.10 of a cup with handle released in June.

germany BioNTech (BNTX) sank 17%, while vaccine partner Covid-19 Pfizer (PFE) lost 4%, both in high volume. Shares hit new highs on Tuesday.

Among the other IBD 50 decliners, Cloudflare (REPORT), Trade office (TTD) and Kulicke & Soffa (KLIC) lost more than 6% each.

Dow Jones winners and losers

caterpillar (CAT), Walgreens (WBA) and Home deposit (HD), up more than 1.5% each, led the rise in the blue chip index.

Caterpillar gained 3% in heavy trade, on course to extend its winning streak to five. The stock returned to its 50-day moving average for the first time in two months. Construction-related stocks were boosted by the Senate’s approval of a $ 1 trillion infrastructure spending program on Tuesday.

Home Depot exceeds the buy point of 333.55 for a mug with handle, according to graphical analysis from IBD MarketSmith. The 5% buy zone goes up to 350.23. The home improvement retail giant has a composite rating of 85 and an EPS rating of 93. A relative strength rating of 56 is a bit low.

Visa (V), down 1.2%, and Salesforce.com (CRM), down 1%, were among the few losers.

Follow Nancy Gondo on Twitter at @IBD_NGondo

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