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The Dow Jones Industrial Average rallied, although growth stocks and small caps had the best gains. Boeing (BA) was once again one of the best blue chips, while Netflix (NFLX) was pummeled lower. Galactic Virgo (SPCE) was trying to correct course, while AMC Entertainment (AMC) reversed lower.
A number of stocks were attempting to stage breakouts amid the rising action. Ranking of actions BioNTech (BNTX) and Morgan stanley (MS) have both passed new buying points.
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Oanda’s senior market analyst Edward Moya said the earnings season has been positive so far which helps stocks.
“If the earnings season theme continues to be a bullish outlook for the economy and a strong consumer handling current price increases, Treasuries could dip even further, and the 10-year yield could come back. above 1.4% by the season in envelopes profits, ”he said in a note. “The reflation trade is back and this time it could stay.”
Nasdaq wins, growth stocks fare better
The Nasdaq lagged behind other major indices, but still posted a gain of 0.6%. Ranking of actions ASML (ASML) was one of the top performers here, up almost 5%. The chip-based equipment game was boosted by a strong earnings report.
The S&P 500 is doing slightly better, up 0.7%. Mexican Grill Chipotle (CMG) was the big winner, increasing over 12% on a solid report.
Snapshot of the US Stock Market Today |
||||
|---|---|---|---|---|
| Index | symbol | Price | Loss of profit | % Change |
| Dow jones | (0DJIA) | 34776.37 | +264.38 | +0.77 |
| S&P 500 | (0S & P5) | 4352.55 | +29.49 | +0.68 |
| Nasdaq | (0NDQC) | 14586.20 | +87.32 | +0.60 |
| Russel 2000 | (Etc.) | 222.08 | +3.78 | +1.73 |
| MICI 50 | (FFTY) | 44.05 | +0.83 | +1.92 |
Last Modified: 1:34 PM ET 7/21/2021 |
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The S&P sectors were mostly positive, led by energy and financials. Consumer goods and utilities were the worst off.
Small caps outperformed again, with the Russell 2000 advancing nearly 3% on Tuesday afternoon.
However, growth stocks did the best in the middle of another bullish session. The ETF Innovator IBD 50 (FFTY) rose by around 2%.
Boeing stock helps drive the Dow Jones up
The Dow Jones Industrial Average fared the best of the major indices, gaining around 0.8%.
Boeing stock has been one of the best performers as it continues to try to break a recent downtrend. It increased by about 2.5%.
Boeing has now managed to break its 200-day line, but remains below the 50-day moving average.
Chevron (CVX) was the best Dow Jones stock of the day, however, up nearly 4%. Amgen (AMGN) fared the worst, although its 1% loss was slight.
Netflix Stock dips ahead
Netflix stock fell after the company posted disappointing results on Tuesday night. The stock fell more than 4% on Wednesday afternoon and fell below its 50-day moving average.
Nonetheless, the NFLX stock continues to build a double bottom base. The ideal entry point here is a 563.66 point of purchase.
The fact that the relative strength line has trended downward since late January is a good reason to be cautious.
Wedbush Securities analyst Michael Pachter, who rates the stock as underperforming with a target of 342, pointed out that there has been only limited growth in subscribers and the company has returned. negative free cash flow. He also said that market saturation in the United States and Canada, as well as in Europe, the Middle East and Africa, “is clearly approaching.”
“We expect further consolidation among entertainment companies, which suggests to us that less content will be available for Netflix in the future,” he said in a research note. “We see Netflix’s misguided foray into games as recognition that the video content pipeline is moving more slowly, with ever increasing content costs.”
The market rally is making noise but not that; Four new purchases
AMC Stock Dips; Virgin Galactic Stock Pops
AMC stocks, the big beast of memes stocks, were in trouble again after Tuesday’s massive 25% gain. The stock lost nearly 1%, but remains above the key 50-day moving average.
The title is looking for some momentum after being beaten in recent weeks. AMC stock fell 24% last week, which was its fourth consecutive week of decline. Despite its stark downside, the stock still has a perfect relative strength rating of 99.
GameStop gave way, slipping almost 2%. It fell back below its 21-day moving average and lost further ground on its 50-day line.
GME stock has now fallen more than 60% from its January high of 483.
Meanwhile, Virgin Galactic stock was trying to hit afterburners again after Tuesday’s drop. It has risen nearly 4% and is looking to resume its 50-day moving average.
It was forced down on Tuesday after Amazon.com (AMZN) founder Jeff Bezos made headlines as he soared into space on his company’s first manned flight, Blue Origin. Its crew included the company’s first paying customer.
The SPCE stockpile is due to ignite rocket boosters after collapsing about 39% last week. He was forced down after revealing in a regulatory filing that he planned to sell up to $ 500 million in shares. This caused Virgin Galactic shares to fall sharply despite news following the company making its first full crew flight.
Ranking Stock passes Buy
The BioNTech Covid vaccine game jumped more than 6% and erased a six-week consolidation, according to MarketSmith analysis. The ideal entry point is 252.88.
But after five straight wins, and another taking shape on Wednesday, a withdrawal could be in the cards. He remains in half-position for now.
BioNTech is a member of the prestigious IBD Leaderboard list of major growth stocks. It is already extended beyond a trendline entry after a recent pullback near 222.
IBD 50 shares Modern (MRNA), another piece of the Covid vaccine, was one of the Nasdaq’s top stocks, gaining more than 4%.
Morgan Stanley meanwhile broke a flat baseline entry of 94.37. The line of relative force is progressing, which is positive.
MS stock has a good mix of earnings and market performance.
Please follow Michael Larkin on Twitter at @IBD_MLarkin to learn more about growth stocks and analysis.
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