Dow Jones Today Stocks Crash as July Hiring Data Disappoints; FDA Timeline Lifts BioNTech; Paycom, DaVita Eye Breakouts



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Shares opened lower, then turned mixed on Wednesday after disappointing hiring data in July and as concerns grew about coronavirus infections and their impact. Vaccine maker BioNTech has taken the news from the FDA. Advanced Micro Devices has extended its breakout rally. The earnings news sent Paycom Software and DaVita beyond the point of purchase. And on the Dow Jones today, Home Depot and UnitedHealth traded just below buy points.




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The Dow Jones lost 190 points, down 0.5%, as oil prices and bond yields plunged after a disappointing ADP hiring report in July. The S&P 500 lost 0.3%. The Nasdaq 100 escaped its slight initial loss and climbed nearly 0.1%, though earnings information was sent Match group (MTCH), Kraft Heinz (KHC) and Amgen (AMGN) at the bottom of the Nasdaq 100.

IBD 50 shares Advanced micro-systems (AMD) jumped 4.7% to lead the Nasdaq 100 in a bid to extend its rally by five days. The chipmaker gained more than 20% in less than two weeks, triggering the eight-week blocking rule.

Paycom software (PAYC) jumped 8.3%, leading the S&P 500. The human resources software developer reported better-than-expected sales and earnings for the second quarter and raised its guidance. The early move sent the shares past a base double-bottom buy point of 404.87.

Concerns about the Delta variant and news reports of a possible full approval from the Food and Drug Administration have been sent BioNTech (BNTX) up 3.6% to top the IBD Leaderboard ranking. BioNTech is in week three of an eight week hold rule. IBD 50 shares Modern (MRNA) opened Wednesday with a gain of 0.9%.

In some of the morning’s most dramatic moves, a four-day-old Robinhood Markets (HOOD) climbed 54% higher. The stock traded more than 41% above Thursday’s initial offer price on Tuesday. biotechnology Beyond spring (BYSI) rose 153%, after reporting positive results from a phase 3 trial of treatment for lung cancer.

Dow Jones Today: Boeing Test Flight Delayed

Amgen fell 2.9%, to today’s Dow Jones low, after reporting second-quarter sales and profits that beat views. But management lowered its profit forecast for the entire year.

Boeing (BA) fell 1.1% after further delays in a test flight of the company’s autonomous and reusable space capsule. Boeing stock is trying to add a third week to its lead from a mid-July low.

UnitedHealth Group (UNH) added 0.2% in early trade. A 1.5% jump on Tuesday took shares to within 2% of a 422.63 buy point in a 12-week grip cup base.

Home deposit (HD) – a stock that benefited during times of tighter Covid restrictions – fell slightly. Home Depot shares rose 1.4% on Tuesday, ending less than 1% below an entry of 333.55, also in a 12-week cup with a grip.

Econ Data: Hiring fades in July

ADP kicked off the ramp-up of the Ministry of Labor’s July wages report with its July National Employment Report. The report showed that private US non-farm employers added 330,000 workers in July. That was less than half of June’s increase of 692,000 jobs and less than half of expectations for an increase of 700,000.


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Oil prices and bond yields fell after the ADP report. West Texas Intermediate futures fell more than 3% to below $ 69 a barrel. The held 10-year yield fell four basis points to 1.13%, after stabilizing just below 1.18% on Tuesday.

IHS Markit releases its final Composite Purchasing Managers Index for July at 9:45 a.m.ET. The Institute for Supply Management releases its July services PMI at 10 a.m. and weekly oil inventory data is due to be released by the Energy Information Administration at 10:30 a.m.

Earnings News: Donnelly and DaVita Run Points of Purchase

In the first earnings news, eXp World Holdings (EXPI) increased by 28%. United Therapeutics (UTHR) and Signature infrastructure partners (LMRK) each gained more than 11%.

Dialysis treatment manager DaVita (DVA) jumped 7.8%, marking an early breakthrough beyond a 124.98 buy point in a double bottom basis. Investors could use a buy breakout spread strategy, which would place an entry at 129.10.

Video game developer Activision Blizzard (ATVI) gained 2.7%. The company announced its second quarter results Tuesday evening. Activision has been rocked by an employee departure and executive reshuffles linked to a lawsuit alleging widespread sexual harassment and discrimination within the company.

On the downside, in addition to Amgen on the Dow Jones today, General Motors (GM) fell 7.7%, despite exceeding its second-quarter targets as annual earnings per share guidance fell short of expectations.

China tightens Covid restrictions

Chinese markets rebounded on Wednesday, with the Shanghai Composite Index and the Hong Kong Hang Seng Index each surging 0.9%. That put the Shanghai Composite up 2.4% for the week as it rebounded from last week’s 4.3% drop. The Hang Seng ended Wednesday up 1.8%, down from 5% the week before.

The positive market action came even as China imposed “massive travel restrictions” on Wednesday, with the cancellation of a large number of airports and train trips, according to the state-run Xinhua news agency. .


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Large-scale Covid testing regimes have also been implemented and Beijing imposed strict entry and exit controls on Sunday. CNBC reported early Wednesday that China’s National Health Commission said it confirmed 96 cases of Covid on Wednesday – the third day in a row it had reported 90 and more cases. Of the new confirmed cases, 71 have been transmitted locally, the health commission said.

The question of how far China will have to go to lock down the further spread of the Delta variant coronavirus comes as a growing regulatory crackdown has left Chinese markets in shock. The shares began to sell aggressively on July 23, as authorities rolled out a series of reforms that reframed regulations for education companies, food delivery operations and publicly traded companies outside of China.

Tech stocks and the internet fell sharply on Tuesday over fears that online gaming would be the next area the government would focus its growing crackdown on.

Global stock market monitoring

Among Chinese gauges in the United States on Wednesday morning, the iShares MSCI China ETF (MCHI) rose 1.8% and the Xtrackers Harvest CSI 300 China A-Shares ETF (ASHR) won 0.9. KraneShares CSI China Internet ETF technology tracker (KWEB) rebounded 2.9% in early trade. The ETF fell 4% on Tuesday.

In Europe on Wednesday, stocks defended reduced gains in afternoon trading. The CAC-40 in Paris fell by 0.3%. The Frankfurt DAX rose 0.5%. London’s FTSE 100 posted a gain of 0.1%. The SPDR Portfolio Europe ETF (SPEU) increased by 0.5%.

IBD 50 Earnings: Roku, HubSpot, Innovative

At least a dozen IBD 50-listed companies have reported or will report earnings this week. Among the companies to be declared, Year (YEAR), Hub Spot (HUBS) and Innovative industrial properties (IIPR) are among the nearby points of purchase.

Roku gained 0.2% at the start of trading, seeking to avoid a fourth consecutive decline. The stock had fallen below its exponential 21-day moving average on Monday, ending Tuesday about 10% below a buy point of 463.09 in a grip cup base. Roku reports after Wednesday’s close.

HubSpot shares were down 0.2% on Wednesday, testing support at their 21-day average. HubSpot stock remains in a buy range above a buy point of 574.93 in a cup base. His withdrawal from the 10 week line did not trigger the automatic sell rule. The breakout therefore remains in play. The buy zone extends to 603.68. The company reports after today’s close.

Nasdaq, S&P 500, Dow Jones today

The stock market gave the US economy a vote of confidence on Tuesday, with the major indices all rebounding from short-term support. The gains came even as concerns and restrictions increased, due to what appears to be the accelerated spread of the Delta coronavirus variant in the United States

As a result, the S&P 500 and the Nasdaq Composite narrowly closed on records. The Dow Jones also opens today near its all-time high and is back above the 35,000 level, which has limited its advance since May.


For a more detailed analysis of the current stock market and its state, study the big picture.


August is generally considered a sleepy month for the market, a month in which traders take a vacation before children return to school. But over the past decade, August’s performance has been patchy. The Dow Jones and S&P 500 have fluctuated over 1.5% in seven of the past 10 years. The Nasdaq has seen such moves in eight of the past 10 years.

IBD’s Big Picture warns that “After rising in eight of the past nine months, a stock market pullback wouldn’t come as a surprise. So far, however, there is no clear sign of such a decline ”. Distribution days are somewhat high, particularly on the S&P 500. But Tuesday’s action showed institutional buyers remain engaged. And there hasn’t been a new cast for two weeks.

The status of the stock market remains in “confirmed uptrend”.

Find Alan R. Elliott on Twitter @IBD_Aelliott

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