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The Dow Jones Industrial Average rose more than 400 points in today’s stock market and traded near its highs. Meanwhile, the Nasdaq composite led the market higher.
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The Dow Jones on the stock market today
Around 3 p.m. ET, the Nasdaq composite gained 1.7%. The Dow Jones traded around 1.3%. The S&P 500 advanced 1.5%, while the Russell 2000 climbed 0.6%. Volume was down on the NYSE and Nasdaq from the same time on Monday.
Tuesday’s gains came after strong selling on Monday, with the S&P 500 and Nasdaq each closing more than 1%. While the market was downgraded to a “correcting market” status last week, there is still a lot to watch out for. Investors primarily want to watch the next tracking day. This key signal confirms that a new uptrend is underway.
So far, Tuesday is on track to register as the first day of a rally attempt. Day one begins when a major index closes or ends high in the day’s range.
Snapshot of the US Stock Market Today |
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|---|---|---|---|---|
| Index | symbol | Price | Loss of profit | % Switch |
| Dow jones | (0DJIA) | 34461.11 | +458.19 | +1.35 |
| S&P 500 | (0S & P5) | 4365.89 | +65.43 | +1.52 |
| Nasdaq | (0NDQC) | 14496.18 | +240.69 | +1.69 |
| Russel 2000 | (IWM) | 221.26 | +1.00 | +0.45 |
| MICI 50 | (FFTY) | 46.66 | +0.85 | +1.86 |
Last Modified: 1:54 PM EST 10/05/2021 |
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Right now, however, investors may consider starting very small positions in certain sectors that are still performing well. It is best to avoid areas with serious weaknesses. For a more in-depth trading strategy, join the IBD experts each morning on IBD Live as they analyze actionable stocks and trading ideas on a daily basis.
Netflix hits a new high
On Tuesday, industry groups at the top of the rankings included the Movie Entertainment Group, which is home to Netflix (NFLX) and AMC (AMC). In addition, several transport-related groups performed better.
Netflix climbed nearly 6% in significant volume to a new high. It is now extended by a buy point of 593.39 on a consolidation. The buy range peaked at 623.06. The streaming giant is mobilizing for the worldwide success of its “Squid Game” series. Analysts expect Netflix stock to earn $ 2.55 per share on sales of $ 7.48 billion when it releases third quarter results on October 19.
Meanwhile, Energy Select Sector SPDR (XLE), a recent market outperformance, gained 1% after slashing earlier gains. Oil prices climbed 1.8% on Monday at noon, to exceed $ 79 a barrel. Oil and gas inventory EOG Resources (EOG) was the last of its kind to come out of a point of purchase.
The shares moved above the 88.09 entry of a cut base but descended below that area in the afternoon trading. The oil and gas exploration industry group currently ranks 3rd of the group’s 197 EIA measurements, reflecting the group’s market leadership. The stock is also a leader of its group, according to its composite rating. The company ranks second in the group with a score of 99.
Elsewhere, financial stocks rose on Tuesday, as the Financial Select SPDR ETF (XLF) rose more than 2%. Tech stocks also performed much better than in Monday’s market. The Technology Select Sector SPDR (XLK) jumped 1.9%.
Wealth management services firm Financial focus (FOCS) came off base with a handle buy point of 54.85. Stocks remain in the buy zone after rising more than 4%.
Growth stocks to watch
Growth stocks had their worst week since the coronavirus crash last week. The Innovator IBD 50 ETF (FFTY) finally traded higher on Tuesday, after seven consecutive days of steep declines. The ETF lost support at its 10 week line, but stocks maintain support at the 40 week line.
Outperforming titles in the IBD 50 included Lovesac (Love and Digital turbine (APPLICATIONS). Lovesac broke out of support at its 21-day exponential moving average and gained over 8%. Digital Turbine has also advanced from this key area of support.
There are a handful of stocks scoring breakouts on the MarketSmith Growth 250 list, including Free field (CLFD), Endava (DAVA) and Robert Half International (RHI).
Clearfield, a fiber optic telecommunications company, came out of a flat base with 47.02 entries. Software engineering firm Endava traded above a consolidation buy point of 143.60. Staffing services firm Robert Half broke a flat baseline entry of 104.83.
Follow Rachel Fox on Twitter at @foxonstocks for more information on the Dow Jones and the market.
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