Shares wrestled in mixed trading on Tuesday with the Dow and Nasdaq leaders paused after hitting another record high on Monday. biotechnology big bank And energy stocks led early Textron above the S&P 500 in an upgrade, Goldman Sachs analysts backed the Dow Jones today, with Boeing not far behind large aircraft orders from United Airlines.
The Dow Jones Industrial Average surged 0.4%, trying to pull back some of Monday’s decline. The Nasdaq Composite swayed 0.1% in stocks today. The S&P 500 scaled its initial gain to 0.1%.
investment bank Morgan Stanley (MS) soared in the S&P 500 after paying its dividend on Monday. 5 of the 6 largest US banks willing to pay dividends It follows the strong results of the Federal Reserve’s annual audit released Thursday.
Morgan Stanley was up 2.7 percent in early trading after doubling its quarterly dividend to 70 cents per share. The bank also launched a $12 billion share buyback program.
Oil producers took six of the top 10 S&P 500 stocks, bouncing back on Monday’s recovery in oil prices.
Also at the top of the S&P 500 aerospace/defense leader Textron (TXT) was up 3.8% as Morgan Stanley upgraded its stock to overweight with a price target of 87. The note points to a cyclical rebound in business jets. and Textron’s market strength in electric vertical takeoff and landing technology.
Canada Solar (CSIQ) was up 5.3% after winning three major solar installation contracts in Japan.
Biotechnology is back in motion, too. Cereval Therapeutics Holdings (CERE) Soars 81%, Company Announces Positive Phase I Trial Results of Antipsychotic Treatment for Schizophrenia Patients Ultragenyx Pharmaceutical (Rare) Soaring 4 percent after Bank of America upgraded its stock to buy with a price target of 162.
Dow Today: Goldman Dividends, Boeing 737 Orders
Walgreens Boots Alliance (WBA) up 1.3% and Nike (NKE) Earned 1% to compete with Goldman in the Dow Jones today.
Goldman opened 1.2% higher after raising its 60% dividend to $2, giving the stock a 2.2% return. The company has not announced a share buyback program. It aims for repo spending of $1.9 in the first quarter. but suspended the buyback in the second quarter as it explored other investments.
Goldman Sachs is the highest earning stock in the Dow so far this year, up more than 49% at its peak in early June. The stock pulls back and rides support at the stock’s 21-day exponential moving average. Advances from that line put the stock in a technical buy range.
Boeing halved gross profit to 0.7%, up on news that United Airlines (UAL) has ordered 200 Boeing 737 Maxs, including 150 of the larger 737-10s. The best of this plane That led United to place an order for the 380 of the 737, 30 of which had already been delivered. United also ordered 75 airlines from airbus (EADSY) makes it the largest single order by any carrier in at least a decade.
Boeing stock fell 3.3 percent on Monday on news that the revamped 777 would be delayed on concerns announced by the Federal Aviation Administration. The remaining slip tested support at the stock’s 50-day moving average and did not reach 8% below the buy catch at 258.50.
house prices accelerating
Homebuilding-related stocks and home-related retail were also boosted by data showing home prices rose sharply in April. The S&P CoreLogic Case-Shiller National Home Price Index reported a 14.6 percent year-over-year increase in April. Compared to a 13.3% increase in March. The 20-city composite index jumped 14.9 percent, up from 14.9 percent in March. Economists had forecast the 20-city index would rise 14.9 percent.
Housing stocks near the point of purchase are: Lennar (lane) R.H. (right) Home Depot (HD) and Trex (TREX). Lennar was up 2.4%, Home Depot was up 1.5% and Trex gained 1% early Tuesday.
IBD 50 Buy Points: Sea Ltd., NovoCure Gain
IBD 50 Stocks Rise Near Total Tuesday Buy C Co., Ltd. (SE) was up 0.6% after ending Monday, 1% below the 285.10 point buy in a 16-week consolidation.
drug maker Novokyo (NVCR) was up 0.6%, trading ahead for the seventh straight week and staying in the buy zone above the base cup buy at 220.58.
Easy 10-Year Bond Yield
Treasury yields remained in focus this week after recovered almost 6% last week Finish the slide for five weeks. The 10-year government bond yield rose 3.8 percent on Monday to settle below 1.48 percent. Yields recovered on Tuesday, holding at 1.50% in early trading.
Two of China’s top stocks flash buy signals.
Monday’s fall lowered June yields to 6.5 percent, a three-month increase. The 10-year yield hit a 13-month high above 1.76 percent on March 30.
Bitcoin rebounds above $36,000
Bitcoin Recovers 5% to Trade Above $36,200 According to CoinDesk. Cryptocurrencies fell below $29,000 last week. For the first time since last year
Bitcoin hit an all-time high above $64,800 on April 14, losing less than 2% in June and gaining just 24 percent year-on-year.
Stocks to Watch: Granite, MLM, Vulcan, Wabtec
The possibility of a federal spending deal has put the play on infrastructure fully on investors’ radar. Expectations appeared to improve on Monday about a bipartisan infrastructure deal playing a key role in boosting market optimism on Friday. A careful statement from President Joe Biden on Saturday appeared to allay concerns raised by the president’s comments that he would veto the deal without going through another, bigger deal called for by progressive Democrats. Democratic parliamentarian leaders still plan to push for larger spending packages under a reconciliation resolution tied to a procedural bipartisan deal. A sense of progress or error in moving towards a deal tends to influence market action.
Among the stocks linked to that spending granite construction (GVA), which cleared a short base buy point at 42.52 on Friday, shares fell on Monday.
Martin Marietta Materials (MLM) offers an early entry by breaking the short downtrend in last week’s five-day rally. But the stock fell below the 50-day line on Monday.
Vulcan material (VMC) remains below a reasonable buy at 194.27, could signal an early entry if it returns to the 50-day line, but reversed slightly on Monday after hitting resistance at that key level on Friday.
Wabtec (WAB) is slightly below 84.80 buy from two bases.
Nasdaq, S&P 500, Dow Jones Today
June and the second quarter of this year, one of the most unusual economic years in market history, are closing in on mixed messages. The Nasdaq and S&P 500 have rallied, but not equal. Both indexes hit new highs. The Nasdaq was up 5.5% in June. This is the best month since December. and follow up to the seventh progression in the past eight months.
The S&P 500 jumped 2.6% this month and rose for the seventh time in eight months. So far, the S&P 500 still has an advantage: it’s up 14.2% versus the Nasdaq’s 12.5% gain.
For a more detailed analysis of the current stock market and its status. study the big picture.
Meanwhile, a quick look at the Dow Jones today shows that the index is consolidating, up 3% from its mid-June low. But it remains more than 2% below a record high in May. The index has recovered and may find support at the 50-day moving average. It is still down 0.7% thus far for the month.
Still, nearly half of the Dow’s 30 stocks are still outperforming the S&P 500 since the start of the year, including the heaviest stock index, Goldman Sachs, up more than 39 percent. JPMorgan (JPM) and Microsoft (MSFT) progression greater than 20% caterpillar (that), Cisco Systems (NCPO) Home Depot (HD) and Intel All (INTC) profits are better than 15%.
UnitedHealth Group (UNH), which accounts for nearly 8% of the Dow, soared 14.5%.
About a third of Dow’s stock is in constructive base form. It does not include names such as Caterpillar and JPMorgan, which are broken down and have work to do before offering valid purchase points.
but apple (AAPL), United Health, visa (V) and Boeing is a show to watch. In particular, Apple was up more than 8% in June. That ended Monday below the buy point at 137.17, less than 2%. That was the Dow’s second-best gain for the month, after Nike (NKE), which surged more than 20% last week. which scored a breakthrough in 25-week consolidation, according to the fourth quarter of fiscal year report.
ETF Breakouts: Software, Small Caps
The iShares Expanded Tech-Software Sector ETF (IGV) has broken through the past three sessions. Monday’s 1.2% jump pushed prices into a decisive buy range. which extends to 409.02
The iShares Russell 2000 ETF (IWM) is playing with a breakout. It ended Monday less than 2% below a buy point of 234.63 in what IBD MarketSmith’s analysis planned for a 16-week fixed base. The ETF was up just 2.2% in June. But earnings were up 17.3% year over year, easily surpassing the S&P 500 and Nasdaq.
Find Alan R. Elliott on Twitter. @Praewa_Peak yes.
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