The Dow Jones Industrial Average hit a record high even after U.S. GDP data came in lower than expected. Small caps made the biggest gains. Robinhood (HOOD) slumped on its much-hyped debut, while Tesla (TSLA) and Ford (F) surged higher. Intel (INTC) was one of the top blue chips.
A number of growth stocks also managed to pass buy points amid the positive action. Skyworks Solutions (SWKS) and Cleveland-Cliffs (CLF) both made bullish moves in the regular session. But the former dived more than 5% after hours following its fiscal Q3 report. Skyworks managed to pass a 197.70 buy point before closing under it ahead of results.
Stocks were boosted after it emerged U.S. gross domestic product rose at a 6.5% annual rate in Q2. While this was up from 6.3% growth in the first quarter, it came in under economists’ forecasts.
Given the U.S. economy came in cooler than feared, it theoretically eases pressure on the Federal Reserve to raise interest rates.
Nasdaq Gains As Small Caps Lead
The Nasdaq composite was the worst major index of the day, though it did edge up 0.1%. Orthodontics stock Align Technology (ALGN) was the big winner, jumping almost 9% on earnings. Megacap financial services firm PayPal (PYPL) was a big laggard, dipping more than 6% on results.
The S&P 500 fared a bit better, turning in a gain of 0.4%. Xilinx (XLNX) was one of the top performers here, gaining more than 6%.
U.S. Stock Market Today Overview
Last Update: 4:12 PM ET 7/29/2021
The S&P sectors were almost all positive, with technology and consumer discretionary making the best gains. Communication services and real estate lagged.
Small caps had the strongest showing, with the Russell 2000 rising 0.8%. Growth stocks also edged up, with the Innovator IBD 50 ETF (FFTY) rising 0.4%. It comes after an 8.7% jump last week.
Dow Jones Rallies As Intel Stock Gains
The Dow Jones Industrial Average fared best out of the major indexes. After hitting a record high it gave up some ground, but still closed up just over 0.4%.
Intel (INTC) was one of the day’s top performers, turning in a gain of 1.2%.
The chip giant remains marooned below its 50-day moving average, however.
Robinhood IPO Leaves Investors Un-Merry
Investors who piled in on the Robinhood IPO were left disappointed, as the stock fell more than 8% in its first day of trading.
The IPO raised about $2 billion, pricing at 38 a share for a market valuation of some $32 billion.
Robinhood, which helped pioneer zero-commission stock trading, was one of the most anticipated IPOs of 2021.
The unusual offering saw 35% of offered stock set aside for its own users to invest in.
The merry men and women who snapped up the stock will be hoping to see its fortunes improve.
Tesla Stock Rallies As Ford Stock Surges
Tesla stock posted a gain of just under 5%. This saw the stock pull away from its near-converged 50 and 200-day lines.
The stock seemed to get a boost after the firm’s CEO Elon Musk confirmed via tweet on Thursday that the company is holding an AI Day on Aug. 19.
Musk said in a June 21 tweet that the event “will go over progress with Tesla AI software & hardware, both training & inference” and that its purpose is recruiting.
The focus of the AI event is likely to be around Tesla’s self-driving technology.
Iconic automaker Ford closed up almost 4% after the firm reported a surprise profit for Q2. Ford stock flashed an early buy signal by retaking the 50-day line, MarketSmith analysis shows.
Ford also raised earnings and cash flow guidance for the full year.
U.S. orders for the new Mustang Mach-E electric crossover and other vehicles were seven times larger than at the same point in 2020, the company said.
Other hotly anticipated new vehicles, such as the Bronco SUV and the Maverick and F-150 Lightning all-electric pickup trucks, are already here or on the way.
Cleveland-Cliffs Passes A Buy Point
IBD 50 stock Cleveland-Cliffs managed to break out of a seven-week base that boasted elements of a double-bottom pattern. It was too short to qualify for this distinction however.
The ideal buy point here was 24.87. Investors also have used 23.55 as an alternate buy point.
The steelmaker was Tuesday’s IBD 50 Stocks to Watch pick. The revamped company is in pole position to zoom higher as the car industry and the overall manufacturing sector rebound.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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