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The Dow Jones Industrial Average edged up as the stock market posted small gains. Apple (AAPL) and Microsoft (MSFT) were among the best blue chips, as the vote on the Lucid Motors merger was expected. Galactic Virgo (SPCE) and AMC Entertainment (AMC) sank again.
X
Some stocks also tried to organize breakouts, despite the softness of the action. Software firm CTP (PTC) and Monolithic power systems (MPWR) have both passed points of purchase.
Stocks lost momentum after the Labor Department reported a surprise increase in initial jobless claims. New jobless claims totaled 419,000 last week, well above the consensus estimate of 350,000.
But Oanda’s senior market analyst Edward Moya said a bad report on jobless claims is not enough to suggest the downtrend is over.
“An unexpected increase in jobless claims did not piss off investors, as seasonal adjustment factors may have played a role in the big failure,” he said. “Many attribute the soft reading to adjustments in the auto industry and while some states have reverted to tighter (Covid) restrictions.”
Nasdaq Up, crushed small caps
The Nasdaq is doing the best among the major indices. He closed with a slight gain of 0.4%. Railway material CSX (CSX) is doing the best with a gain of 3.4%. He climbed above the 50 day line by forming a base.
The S&P 500 was also up, gaining 0.2%. Domino’s Pizza (DPZ) was the big winner here, closing 14.6% higher on its last earnings report.
Snapshot of the US Stock Market Today |
||||
|---|---|---|---|---|
| Index | symbol | Price | Loss of profit | % Change |
| Dow jones | (0DJIA) | 34822.75 | +24.75 | +0.07 |
| S&P 500 | (0S & P5) | 4367.50 | +8.81 | +0.20 |
| Nasdaq | (0NDQC) | 14684.60 | +52.65 | +0.36 |
| Russel 2000 | (Etc.) | 218.48 | -3.58 | -1.61 |
| MICI 50 | (FFTY) | 44.52 | +0.32 | +0.72 |
Last Modified: 4:12 PM ET 07/22/2021 |
||||
S&P sectors were mixed, with technology and healthcare leading the way. Energy and financials have been the worst off.
Small caps saw recent gains come to a screeching halt, with the Russell 2000 closing 1.6% lower. Growth stocks were more fortunate, however, with the Innovator IBD 50 ETF (FFTY) ending with a gain of around 0.7%.
The Dow Jones Gains As Apple Stock Appears
The Dow Jones Industrial Average posted the smallest gain of any major index. It increased by around 0.1%.
Apple’s stock was one of the main components. It moved away from a buy zone posting a gain of around 1%.
Apple stock is currently expanding from a base cup buy point of 137.17, according to MarketSmith analysis. It continues to rise above its 50-day moving average.
Microsoft’s ranking action was also one of the biggest winners, increasing by around 1.6%. It remains extended beyond an entry of 263.29. However it was Salesforce.com (CRM) which led the index with a gain of around 2.5%.
EV shares: vote on Lucid Motors merger delayed
Lucid Motors looks set to go public, although a key merger vote for the luxury electric vehicle startup remains unanswered.
Shareholders were voting on whether to approve the blank check company’s merger on Thursday Churchill Capital IV (CCIV) and Lucid Motors, based in Newark, California.
The vote was due to close today, but the deadline was extended to Friday because not enough shareholders had approved the proposal to finalize it.
Churchill IV adjourned the meeting until 9 a.m.ET on Friday. The company said in a press release that all but one of the business combination proposals have been approved.
It is set to become one of the biggest new electric vehicle inventories, with the deal valuing Lucid at around $ 24 billion.
Lucid Motors shares were scheduled to debut on Friday. It will trade under the symbol LCID on the New York Stock Exchange. The startup is expected to receive around $ 4.4 billion in cash from the transaction. Saudi Arabia’s Public Investment Fund has invested $ 1 billion in Lucid.
Churchill Capital IV was down before the vote, slipping about 2%. It is trading around its 50 day line and well below previous highs.
You’re here (TSLA), the big beast in electric vehicle stocks due to its $ 631 billion market cap, fell about 1%.
After hours: two distributions of profits; Invest vs. Pokemon
Virgin Galactic Dives, AMC Stock Dives
Virgin Galactic shares stalled again Thursday after Wednesday’s bullish day. He dropped more than 7% after being denied the 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.
SPCE stock has struggled to come out of a downward spiral after its stock price slumped around 39% last week. Virgin Galactic has sunk after revealing in a regulatory filing that it planned to sell up to $ 500 million in shares. The sale came about despite the fact that it came right after the company made its first full crew flight.
Meanwhile, AMC stocks, the current star of meme stocks, continued to decline. The stock slipped below the key 50-day moving average, dropping nearly 9%.
The stock has collapsed in recent weeks. AMC stock fell 24% last week, a fourth straight week of decline. Despite its painful downside, the stock still has a perfect relative strength rating of 99.
GameStop (GME) also slipped, losing nearly 4%. This caused him to lose more ground on his 50-day line. GME stock has now fallen more than 60% from its January high of 483.
These growth stocks spend buying
PTC software stock is in a buy zone after escaping from a mug base with handle. The ideal buying point here is 147.17.
The relative strength line appears to curve upward after a period of gentle ascent, which is positive.
However, the winnings are due in six days. Investors should remember that IBD recommends using options as a strategy to limit risk. It is a way to capitalize on the upside potential of a stock’s earnings trend, while reducing downside risk.
Monolithic Power Systems power circuit chipset managed to break above a buy point of 406.85, but closed below. The stock has a strong composite rating of 91, with earnings performance its strongest feature.
Please follow Michael Larkin on Twitter at @IBD_MLarkin to learn more about growth stocks and analysis.
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