Nasdaq Gains As Growth Stocks Lead
The Nasdaq fared best out of the major indexes, posting a gain of just over 1%. Covid vaccine play Moderna (MRNA) was the biggest gainer, rising almost 8%.
The S&P 500 was also making progress, rising 1%. One of the standouts here was management consultancy stock Robert Half International (RHI). It rose around 7% as it broke out of a flat base.
The S&P sectors were almost all positive, with consumer staples and communication services making the best gains. Energy was the only laggard.
U.S. Stock Market Today Overview
Last Update: 2:52 PM ET 7/23/2021
It was tough day for small caps, though the Russell 2000 managed to squeeze out a gain of 0.3%.
Instead it was growth stocks that had the bragging rights for the day. The Innovator IBD 50 ETF (FFTY) made a muscular gain of around 0.7%.
McDonald’s Stock Fries Dow Jones Rivals
The Dow Jones was also making headway, though it lagged the other major indexes. It rose 0.6%.
McDonald’s was the star component, with the burger giant rising more than 2%. McDonald’s stock is currently in a buy zone from a flat base entry of 238.28, MarketSmith analysis shows.
Intel (INTC) was the biggest Dow laggard, falling more than 6%. The stock gapped down below its 200-day moving average. It comes after the firm warned current chip shortages could go into 2023.
Virgin Galactic Stock Slips Again; AMC Stock Dips
Virgin Galactic stock looks on course to end the week with another loss after it dipped almost 4% Friday. SPCE stock has sunk back under the 200-day moving average, and is on track to give up around 1% for the week after a rally attempt failed. This comes after its stock price collapsed about 39% last week.
Virgin Galactic was forced lower Tuesday after Amazon.com (AMZN) founder Jeff Bezos made headlines by blasting into space in his Blue Origin company’s first manned flight. His crew included the firm’s first paying customer.
SPCE stock sank after revealing in a regulatory filing that it plans to sell up to $500 million in stock. The sell-off came despite the fact it came just after the firm made its first fully crewed flight.
Meanwhile AMC stock, the current big beast of the meme stable, was also dipping but pared losses. It remains stuck under the key 50-day moving average. One crumb of comfort is the stock looks set to post a weekly gain of more than 4%. This comes after it rose by more than 24% on Tuesday.
The stock has been sinking in recent weeks. AMC stock tumbled 24% last week, a fourth down week in a row. Strong action over the past 12 months has netted the stock a perfect Relative Strength Rating of 99.
GameStop (GME) was trading basically flat. It also remains marooned under its 50-day line. GME stock is down more than 60% from its high of 483, which it reached in January.
Roku, Snap Stock Pass Buy Points
Roku was promoted to the prestigious IBD Leaderboard of leading growth stocks after making a bullish move above a trend line.
The strong action continued, and it managed to pass a handle buy point of 463.09. The video streaming media player maker has been behaving well of late, recently breaking out of a double-bottom base.
Social media play Snap cleared a long consolidation with a buy point of 73.69. Volume was high as it made a post-earnings move, which strengthens its case. The relative strength line was hitting a fresh high, another encouraging sign.
The strong action also saw SNAP stock added to Leaderboard.
The Venice, Calif., firm was boosted by a strong quarterly report. It beat views for the top and bottom lines in Q2, posting adjusted EPS of 10 cents on revenue of $982 million. Daily active users jumped 23%, or 55 million, to 293 million, also above estimates.
PayPal is in a new buy zone after passing a new cup-with-handle entry on a weekly chart. The ideal buy point here is 307.92.
The relative strength line has been improving, reaching a four-month high. However PayPal posts earnings Wednesday after the close, which justifies caution.
Elanco Animal Health managed to break out of a new flat base. However it is currently just under the ideal entry point of 56.63.
Skechers stock also broke out of a flat base after posting strong earnings. The buy point here is 53.24. The firm delivered an earnings beat, and gave bullish guidance.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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