The Dow Jones Industrial Average posted a gain, while the Nasdaq reversed higher. Intel (INTC) was a leading blue chip, while Tesla (TSLA) surged before posting an earnings beat. New issue Doximity (DOCS) made a bullish move, passing a buy point, while Bitcoin soared.
Nasdaq Reverses Higher As S&P 500 Gains
The Nasdaq struggled the most out of the major indexes. However, it managed to battle back and post a slight gain, less than 0.1%. Zoom Video Communications (ZM) was the biggest gainer, closing up almost 4%. It closed just below its 200-day moving average. Chinese video game publisher NetEase (NTES) was the big laggard, falling almost 14%
The S&P 500 rose, though its gain was a slim 0.2%. One of the standouts here was Hasbro (HAS), which soared more than 12% on earnings. It broke out of a 28-week base, rising past a 101.34 buy point in heavy volume.
U.S. Stock Market Today Overview
Last Update: 4:04 PM ET 7/26/2021
The S&P sectors closed mixed, with energy and materials making the best gains. Technology and health were the biggest laggards
It was another challenging session for small caps, but the Russell 2000 managed to battle its way into the green. It closed up 0.3%.
Growth stocks fared worst of all, with the Innovator IBD 50 ETF (FFTY) closing down 0.6%. It comes after an 8.7% jump last week.
Intel Stock Gain Helps Dow Jones
The Dow Jones Industrial Average closed in line with the S&P 500, rising 0.2%.
Intel stock was one of the top components in the Dow, posting a gain of more than 2.5%. It is trying to recover from selling off in high volume following its earnings report last week.
The relative strength line for Intel stock has been plunging in recent weeks, and the stock is stuck at the bottom of a consolidation pattern. It is also shy of its 50-day moving average.
Tesla Stock Gains Ahead Of Earnings Beat
Tesla stock was charging higher ahead of earnings. It closed up 2.2%.
The stock was removed from the Leaderboard list of leading growth stocks, despite its gain. This was to reduce the risk around earnings.
TSLA has been holding support at its converged 50-day and 200-day moving averages
The electric-car maker was expected to report a big quarter, with adjusted profit up 105% to 90 cents a share and revenue up 89% to $11.4 billion.
Tesla earnings came out better than these expectations. The firm posted EPS of $1.45 and revenue of $11.96 billion.
Bitcoin Holds Gains, GBTC Stock Does This
Bitcoin was holding most of its gains after managing to top the $39,000 level for the first time in nearly six weeks.
The cryptocurrency was up more than 11%, and trading for almost $38,500, according to CoinDesk.
Encouraging remarks by Twitter and Square CEO Jack Dorsey and Tesla CEO Elon Musk on Bitcoin have been cited as reasons for the rally.
Musk said Tesla is likely to start accepting Bitcoin for vehicle purchases again, after previously suspending this service due to concern over the use of fossil fuels for Bitcoin mining.
Grayscale Bitcoin Trust (GBTC) got a big boost, gapping up through its 50-day line with an advance of more than 24%. It closed in on its 200-day moving average. The grantor trust remains down more than 40% off its Feb. 19 high of 58.22 however.
IPO Stock Passes Buy, Joins This List
New issue Doximity traded most of the session in a buy zone after breaking out of an IPO base with a 65.52 buy point. Investors should remember that IPO stocks can be volatile however.
The stock was added to the IBD Leaderboard watchlist even before it passed its entry due to bullish early action.
The firm, which offers a cloud-based platform for physicians and medical professionals, started trading June 24. It is already trading for more than double its offering price of 26.
Professional Bank parent Professional Holding also staged a breakout, running past a flat base with a buy point of 19.35, according to MarketSmith analysis.
The stock boasts a good mix of earnings and stock market performance. However the relative strength line is off highs, which is not ideal.
Communications equipment stock Adtran is also in a buy zone after emerging from a consolidation pattern. The RS line has just hit a fresh high, which is encouraging.
Earnings performance is currently not ideal. This is seen improving, with analysts seeing full year EPS jumping by 100% to 52 cents in 2021, before moderating to 21% growth in 2022.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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