Stocks rallied Thursday with the Dow Jones Industrial Average up nearly 200 points despite disappointing GDP and jobless claims data.
The S&P 500 rallied 0.6%, the Dow Jones industrials rose 0.6% and the Nasdaq added 0.4% in the stock market today. Small caps tracked by the Russell 2000 outperformed, up 1.5%. Volume was mixed, higher on the NYSE and lower on the Nasdaq, vs. the same time Wednesday.
Early Thursday, the Commerce Department reported the U.S. economy grew at a 6.5% annualized rate in the second quarter, missing the consensus estimate for 8% growth.
Meanwhile, first-time applications for unemployment assistance dipped to 400,000 in the week ended July 24, the Labor Department reported. That was down from the prior week’s 424,000 tally, but more than the 390,000 claims projected by economists.
U.S. Stock Market Today Overview
Last Update: 12:10 PM ET 7/29/2021
The U.S. economy continues to recover from the Covid-19 pandemic, which triggered nationwide lockdowns over a year ago. Most states had relaxed restrictions as vaccinations continue to roll out and cases decrease. But mask mandates are returning in some areas as the Delta variant spreads.
Cumulative Covid-19 cases worldwide are approaching 197 million, with more than 4 million deaths, according to Worldometer. In the U.S., cases have surpassed 35 million with over 628,000 deaths.
Although the numbers of new cases and deaths in the U.S. have decreased dramatically, cases are back on the rise in some states due to Delta.
Growth stocks breaking out included MaxLinear (MXL), which gapped up and surged 11% in heavy trade. MXL stock sailed past a 43.60 handle buy point. It’s now past the 5% buy zone, which topped out at 45.78. Late Wednesday, the chip designer reported Q2 results that beat views on both the top and bottom lines.
MaxLinear’s relative strength line, which compares a stock’s performance to the S&P 500, is at a new high. That’s a bullish sign.
Cleveland-Cliffs (CLF) soared 9% in triple normal trade. That sent the steelmaker’s shares past a 24.87 buy point of a cup base, according to IBD MarketSmith chart analysis. It remains in buy zone up to 26.11. Cleveland’s relative strength line is also at a new high.
Among other steel stocks, Steel Dynamics (STLD) jumped 6% in busy trade to break out past a 63.28 buy point of a double-bottom base. Shares remain in buy range up to 66.44. The strong performance resulted in its addition to SwingTrader.
STMicroelectronics (STM) leapt 5% in heavy volume to gap up past a 40.69 buy point of a three-month consolidation. Shares remain in buy range, which goes up to 42.72. Late Wednesday, the Switzerland-based chipmaker reported Q2 earnings and sales that beat Wall Street targets. Earnings soared 340% year over year and sales increased 43%.
CEO Jean-Marc Chery cited strong demand due to the global chip shortage, which he expects to continue into the first half of 2023.
Icon (ICLR) rose 4% in twice normal turnover, on pace to extend its win streak to three. The stock cleared a 234.32 cup-base entry and is in buy range, which tops out at 246.04. The Ireland-based company provides contract clinical research services to the pharma and biotech industries.
Franco Nevada (FNV) gained over 4% in heavy trade to break out past a 155.99 buy point of a long cup with handle. The gold mining company’s stock remains in potential buy zone, which goes up to 163.79.
On The Dow Jones
Follow Nancy Gondo on Twitter at @IBD_NGondo
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