The Dow Jones Industrial Average surged amid positive economic data. Tesla (TSLA) CEO Elon Musk subpoenaed Goldman Sachs (GS) amid his Twitter (TWTR) takeover battle. Apple (AAPL) and Microsoft (MSFT) were top blue chips.
A trio of notable stocks are trading near buy points amid the positive action. CF Industries (CF), C.H. Robinson (CHRW) and Air Transport Services (ATSG) are all eyeing entries.
X
Stocks were buoyed by positive economic data. The ISM services index popped to 56.7, well clear of the consensus estimate of 53.5. The ISM report also showed a clear improvement with both business activity and new orders.
This raised the prospect that interest rate hikes may not necessarily cause the economy to fall into a severe recession.
Volume was mixed, rising on the Nasdaq but falling on the New York Stock Exchange vs. the same time Tuesday, according to early data.
The yield on the benchmark 10-year Treasury note fell three basis points to 2.71%. West Texas Intermediate crude oil slid almost 4% to just under $91 per barrel.
Nasdaq Soars As Tech Stocks Flex
The Nasdaq fared best out of the major indexes, gaining 2.6%. Moderna (MRNA) was a top performer here as it surged 16% on earnings.
The S&P 500 also impressed with a rise of 1.6%. PayPal (PYPL) had a good day here, rising more than 9% on a positive quarterly report.
U.S. Stock Market Today Overview | ||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 32812.00 | +415.83 | +1.28 |
| S&P 500 | (0S&P5) | 4155.12 | +63.93 | +1.56 |
| Nasdaq | (0NDQC ) | 12668.16 | +319.40 | +2.59 |
| Russell 2000 | (IWM) | 189.66 | +2.66 | +1.42 |
| IBD 50 | (FFTY) | 28.83 | +0.06 | +0.21 |
Last Update: 4:16 PM ET 8/3/2022 | ||||
The S&P 500 sectors were mostly positive. Consumer discretionary and technology were the best performers. Energy was the only area to fall amid the dip in oil prices.
Small caps also gave the bears a bloody nose, with the Russell 2000 gaining 1.4%.
The Innovator IBD 50 ETF (FFTY), a bellwether for growth stocks, struggled but still closed up 0.2%.
Dow Jones Today: Microsoft, Apple Stocks Impress
The Dow Jones Industrial Average ended the day more than 400 points higher. It turned in a gain of 1.3%.
Apple stock was among the best performers on the Dow Jones today after it gained nearly 4%. The relative strength line hit new highs, a positive sign. AAPL stock currently sits well below a potential consolidation pattern buy point of 183.04, according to MarketSmith analysis.
Microsoft stock also turned in a strong gain as it popped almost 3% higher. It is now closing in on the key 200-day moving average.
A late surge from Walt Disney (DIS) saw the media stock turn in the top gain after it rose more than 4%. It remains down 30% for the year, however.
Elon Musk Subpoenas Bank Giants Amid Twitter Fight
Elon Musk fired another shot in his ongoing legal battle over his Twitter takeover bid by subpoenaing Goldman Sachs and JPMorgan Chase (JPM).
His legal team are looking for more details on how the Wall Street titans advised the social media company over his mooted takeover bid.
Musk wants to see documents and communications exchanged between the banks and Twitter as well as their analysis of Twitter’s financial performance and its valuation.
The eccentric executive has been trying to walk away from the $44 billion deal to buy the company, citing the number of spam accounts on the platform.
For its part, Twitter has sent subpoenas to lenders backing Musk’s deal, co-investors and other associates. TWTR is looking to force Musk to go ahead with the 54.20-per-share acquisition.
Twitter ended the session with a fractional gain and well off highs for the day. Tesla by contrast rose more than 2%. It has managed to pull slightly clear of the key 200-day moving average.
EV Stocks: These Firms Are Set To Report
A couple of electric vehicle makers are reporting earnings after the close.
Lucid Motors (LCID) is expected to cut its losses from $1.17 in Q2 2021 to 37 cents a share this quarter.
Lucid’s forward guidance will be a point of interest after China’s BYD (BYD) reported strong sales numbers for July. Lucid stock gained more than 4% amid the bullish action but remains down around 50% year to date.
Fisker (FSR) is also getting set to report quarterly earnings. It is expected to lose $1.64 a share, according to FactSet. It is losing money as it invests to build out its Ocean SUV. Fisker stock surged nearly 6%. It has also struggled badly so far in 2022 though, falling around 38%.
Apple, ARK Stocks Lead Risk-On Rally; 5 Earnings Movers Near Buy Points
Outside Dow Jones: 3 Stocks Eye Buy Points
While there was a dearth of breakouts, a trio of attractive stocks are closing in on buy points.
Fertilizer play CF Industries is closing in on a cup base with an ideal entry point of 113.59.
Excellent all-around performance has netted CF stock the No. 3 spot on the IBD 50 list of leading growth stocks. It rose after it reported EPS had jumped 440% to $6.21 on Monday. The stock boasts a perfect Composite Rating of 99.
Freight transportation giant C.H. Robinson has formed a cup base that offers a 116.09 buy point. It could also soon form a handle entry. The stock has bullishly cleared its 50-day and 200-day lines. It surged last week on positive earnings. Big money has been snapping up the stock of late, with its Accumulation/Distribution Rating coming in at B+.
Air Transport Services Group is also worth watching as it tries to close in on a consolidation pattern entry of 34.64. Earnings are due late Thursday, which could help the stock take off. ATSG leases cargo planes to companies including Amazon‘s (AMZN) Air business.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more analysis of growth stocks.
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