Stock Market Rebound After Last Week’s Sell-Off; Three At Buy Point

The major stock market indexes held most gains on this first trading day of a holiday-shortened week.

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The Nasdaq composite leads the day, up 2.8%. The S&P 500 is up 2.5% and the Dow Jones Industrial Average is up 2%. The Russell 2000 is up 2.6%.

Volume was lower on the Nasdaq, though that’s to be expected after Friday’s expiration of options and futures, which tends to drive up volume. NYSE volume wasn’t available at Investors.com.

Semiconductor Component Maker At Buy Point

Photronics (PLAB), a manufacturer of photomasks used in the making of semiconductors, rose 7.5%, rising above the 21-day exponential moving average. The stock also regained the 20.40 buy point , which it initially cleared May 26.

The company passes all nine criteria on the IBD MarketSmith checklist. It has a 99 out of 99 Earnings Per Share Rating, as well as a 99 Composite Rating, and Relative Strength Rating of 96. Quarterly earning per share growth has shown strength, with an increase of 188% in the April-ended quarter, 192% in the January quarter, and 230% in October quarter.

Two Stocks In The 5% Buy Zone

United Therapeutics (UTHR) is up 4.3% and back above the 218.48 buy point, and in the 5% buy zone. The stock has shown strength since the FDA approved a treatment for lung disease on May 23. It has 95 for both Composite Rating and Relative Strength Rating.

Privia Health (PRVA), a cloud-based medical platform for medical groups, is up 4.7%, breaking out past the 29.07 buy point of a cup base. It’s in the 5% buy zone. It has an EPS rating of 96 and a Composite Rating of 93.

Just remember, it is risky to buy a breakout in a market correction.

Bancolombia (CIB), a commercial bank company operating in Columbia, El Salvador, Panama, Cayman Islands and Peru, is down 9%, dropping below the 200-day moving average. Columbia just elected a leftist leader, according to NBC news.

Chinese Stocks Rally

Li Auto (LI) is up 8.6%, continuing the increase since its May 6 low. As of today, Li Auto is taking reservations for its six-seat electric L9 SUV, targeting families.

Energy Showing Strength After Last Week’s Losses

Diamondback Energy (FANG) is up 7.5% on news that it will increase its return on capital of 75% free cash flow, up from 50% the beginning in the third quarter of this year. The stock price is now back above the 200-day moving average.

Lennar (LEN) stock is up 3.2% after reporting better than expected Q2 2022 sales and earnings numbers. Earnings per share came in at $4.49 per share, versus analysts’ expectations of $3.95, according to FactSet. The company reported sales of $8.36 billion versus the consensus estimate of $8.11 billion.

Gross margin improved to 23.4% from 18.6%, the same period last year, despite higher material and wage costs. Executive Chairman Stuart Miller said Lennar is seeing a slowdown in the current quarter due to increased mortgage rates and home prices.

Index ETFs Bounce

Invesco QQQ Trust ETF (QQQ) is up 2.9% today on big-tech strength. The SPDR S&P 500 ETF (SPY) is also showing strength, up 2.5%.

Bitcoin futures bounced back 4.5% today to $21,380, after a recent sharp sell-off and hitting a low of $17,602 over the weekend.

The Innovator IBD 50 ETF (FFTY), a gauge of growth stocks, is up 3.7%.

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