The Dow Jones Industrial Average rallied, with Microsoft (MSFT) and Apple (AAPL) leading amid a tech stocks surge. AMC Entertainment (AMC) took a dive as meme stocks came under pressure, while Tesla (TSLA) saw early gains melt away.
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New Leaderboard stock Tempur Sealy (TPX) managed to bounce above a buy point, while Cerence (CRNC) and Gildan Activewear (GIL) also tried to break out.
Stock market sentiment got an early boost on news the economy added 850,000 jobs in June, above the consensus estimate of 703,000. The unemployment rate unexpectedly rose to 5.9%.
Nasdaq, S&P 500 Rally
The Nasdaq was benefiting from strength in tech, posting a gain of 0.6%. Google parent Alphabet (GOOGL) was one of the top performers, with the Leaderboard name rising more than 2%.
The S&P 500 was running virtually neck and neck, also rising 0.6%. Oracle (ORCL) was the biggest winner here, gaining around 3%. Carmax (KMX) was another standout performer, rising almost 3%.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 34777.77 | +144.24 | +0.42 |
| S&P 500 | (0S&P5) | 4347.14 | +27.20 | +0.63 |
| Nasdaq | (0NDQC ) | 14615.45 | +93.07 | +0.64 |
| Russell 2000 | (IWM) | 229.75 | -1.64 | -0.71 |
| IBD 50 | (FFTY) | 44.83 | -0.80 | -1.75 |
Last Update: 2:54 PM ET 7/2/2021 |
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The S&P sectors were mostly positive, with technology and consumer discretionary leading. Energy and financials were the worst laggards.
Small caps fared poorly, with the Russell 2000 dipping 0.7%. It was being hurt by the weakness in financial and energy stocks.
Growth stocks were given an even worse battering by the bears, with the Innovator IBD 50 ETF (FFTY) falling 1.8%.
Dow Jones Gains; Apple Stock, Microsoft Lead
The Dow Jones Industrial Average was lagging the other major indexes, but still managed to rise almost 0.5%.
Apple stock was one of the top performing components thanks to the strength in technology. It rose 1.7%. AAPL stock is in a buy zone after passing a cup base buy point of 137.17, according to MarketSmith analysis. The relative strength line is showing signs of improvement.
With its iPhone business maturing, investors are looking for a new big growth driver for Apple stock. Services and wearables are seen as two key drivers. Apple’s Wearables, Home and Accessories unit saw sales increase 25% to $7.8 billion in the March quarter.
Microsoft was the leading Dow Jones stock, however, posting of around 2%. Microsoft is slightly extended past the top of a buy zone after breaking out from a cup base. The ideal buy point here is 263.29. The relative strength line is backing its advance.
Microsoft stock has been bolstered by the unveiling of Windows 11, which offers a range of performance and usability improvements.
AMC Stock Dives
AMC stock was plunging Friday. Its dip of around 6% means it was off session lows however. The meme stock is on track to post a weekly loss of more than 5%.
While it is having a down week, AMC stock is still up massively for the year, posting a gain of around 2,300%. This is despite the cinema stock’s current dire earnings performance.
GameStop (GME), the original meme stock, was also dipping. It fell around 0.5%. It remains up almost 1,000% since the start of 2021.
Clover Health Investments (CLOV) was another member of the meme stock stable that was struggling. It fell around 5%.
The stock is currently on track to post a weekly loss of around 9%. Yearly performance is also lacking, as the stock is down more than 30% since the start of 2021.
Tech Titans Fueling Market Rally: These Three Are In Buy Range
Tesla Stock Charge Short Circuits
Tesla stock had charged higher early, after setting a record for quarterly deliveries. This was despite the fact it came in at the low end of Q2 forecasts amid a global chip shortage and growing EV competition.
However, the EV stock got turned away at the 700 level after posting a fast gain of 3.3%. Its position was continuing to weaken, and Tesla was posting a slight loss.
It remains in a buy zone from an aggressive entry point of 675 after previously moving above a trend line.
Tesla revealed it had delivered 201,250 vehicles in Q2, up from the prior record of 184,800 in Q1 and 90,900 a year ago. It also produced 206,421 vehicles, including 204,081 Model 3 and Model Y EVs, and 2,340 Model S and X vehicles.
Tesla this month began long-delayed deliveries of the Model S Plaid, the revamped version of the luxury sedan, but those weren’t expected to ramp up quickly. There’s no word on when the Model X Plaid will officially launch.
Bed Leader Bounces Above Buy
Bed giant Tempur Sealy managed to bounce above a above a new flat-base buy point of 41.14. This is a second stage base, which is a positive.
The relative strength line is bending upward, which is a bullish indicator. The stock boasts an impressive balance of earnings and stock market performance.
The bullish move and strong profile of Tempur Sealy stock saw it added Friday to the prestigious Leaderboard list of leading growth stocks.
Cerence is in a buy zone after breaking out of a second-stage cup-with-handle base. The ideal buy point is 120.10. The auto software stock boasts strong earnings and stock market performance.
Gildan Activewear fell back below its entry after trying to break out of a flat base. The ideal entry point here is 38.24.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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