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Apple Stock – Dow Jones Lags As Bank Stocks Weigh But Nasdaq Hits New High; 3 Breakouts To Watch

Stocks were narrowly mixed midday Tuesday, as the tech-heavy Nasdaq composite hit a new high while the Dow Jones Industrial Average was slightly lower.




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The Dow Jones industrials dipped less than 0.1%, the S&P 500 edged 0.2% higher and the Nasdaq gained nearly 0.5% in the stock market today. Small caps tracked by the Russell 2000 lagged, down 1.2%. Volume was mixed, lower on the NYSE but higher on the Nasdaq vs. the same time Monday.

Among exchange traded funds, Innovator IBD 50 (FFTY) was virtually flat, while the Nasdaq 100-tracking Invesco QQQ Trust (QQQ) climbed 0.4%.

Early Tuesday, the Labor Department reported the consumer price index increased 5.4% from a year ago, the largest jump in nearly 13 years. Economists surveyed by Dow Jones expected a 5% gain. The CPI measures the weighted average of prices of a basket of consumer goods and services, such as transportation, food and medical care.

On Monday, the main stock indexes advanced to new high ground. The S&P 500 made a record high, while the Dow and Nasdaq marked new closing highs.

U.S. Stock Market Today Overview

Index Symbol price Gain/Loss % Change
Dow Jones (0DJIA) 34978.67 -17.51 -0.05
S&P 500 (0S&P5) 4391.26 +6.63 +0.15
Nasdaq (0NDQC ) 14799.01 +65.77 +0.45
Russell 2000 (IWM) 223.85 -2.72 -1.20
IBD 50 (FFTY) 44.34 +0.19 +0.43
Last Update: 11:58 AM ET 7/13/2021

The U.S. economy continues to recover from the Covid-19 pandemic, which triggered nationwide lockdowns over a year ago. Most states have relaxed restrictions as vaccinations continue to roll out and cases decrease.

Cumulative Covid-19 cases worldwide have topped 188 million, with more than 4 million deaths, according to Worldometer. In the U.S., cases are approaching 35 million with over 623,000 deaths, although the numbers of new cases and deaths in the U.S. have decreased dramatically.

Boeing ((BA)) gapped down and fell over 3% in heavy volume, as it continues to hit resistance at its 50-day moving average. Boeing stock is consolidating with a 278.67 entry point but is hitting resistance at the 50-day line.

The jet maker plans to cut production of its 787 Dreamliner as it looks to resolve another manufacturing issue, forcing another slowdown to deliveries. The new issue was found in the forward pressure bulkhead at the front of the plane, involving the skin of the aircraft, sources told the Wall Street Journal.

Goldman Sachs (GS) and JPMorgan (JPM) were down more than 1% each after reporting earnings Tuesday before the open.

Big bank stocks have been under pressure recently as Treasury yields taper off, while trading revenue is normalizing after pandemic-fueled volatility. But the robust pace of IPOs and M&As buoyed investment banking results.

Goldman Sachs earned $15.02 per share on revenue of $15.39 billion, easily beating analyst targets. The stock continues to work on a flat base with a 393.36 buy point, according to IBD MarketSmith chart analysis. It’s about 5% away from the entry.

JPMorgan reported strong Q2 results with earnings of $3.78 a share on revenue of $30.5 billion, also topping views. The stock remains below its 50-day line as it forms a flat base with a 167.54 buy point. JPM stock is about 8% away from the entry.

Among other blue chips losing ground, Caterpillar (CAT) and Dow Inc. (DOW) also gave up more than 1% apiece.

Tech Stocks Rally

But big-cap techs were mostly higher, led by Apple (AAPL) and Microsoft ((MSFT)).

Apple reversed from an early dip to a 2% gain, on track for a new closing high. Volume was running nearly three times higher than normal. Shares are extended from a 137.17 entry of a cup base.

Microsoft gained nearly 2% in heavy volume as it continues to trade solidly above a 263.29 buy point of a cup base. Shares are extended from the entry. The 5% buy zone goes up to 276.45. Microsoft is an IBD Leaderboard and IBD Long-Term Leader stock.

Outside The Dow

Upwork (UPWK) surged 10%, breaking out past a 61.31 buy point of a deep cup with handle in huge volume. Shares remain in potential buy range up to 64.38. Santa Clara-based Upwork operates an online platform that connects companies with freelancers. Upwork is an IBD Leaderboard stock.

Starbucks (SBUX) rose 1%, and climbed past a 119.08 buy point of a 13-week cup base. The potential buy range for Starbucks stock tops out at 125.03. However, volume was only about 9% higher than normal.

Overstock.com (OSTK) rallied nearly 6% in twice normal trade to climb past a 101.10 buy point of a cup with handle. It previously cleared an earlier handle entry of 95.41, before setting up the higher buy point.

Among other IBD 50 winners, Figs (FIGS) and Global E-Online (GLBE) rose more than 3% each. Both stocks held their initial public offerings in May.

Follow Nancy Gondo on Twitter at @IBD_NGondo

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Apple Stock – Dow Jones Lags As Bank Stocks Weigh But Nasdaq Hits New High; 3 Breakouts To Watch