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Dow Jones Leads As S&P 500, Nasdaq Hit New Highs; Growth Stocks Rally On Earnings

Stocks rose midday Thursday, as the Dow Jones Industrial Average rallied 150 points while the S&P 500 and Nasdaq headed for record highs.




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The Dow Jones industrials rose 0.5%, the S&P 500 was up nearly 0.4% and the Nasdaq climbed 0.3% in the stock market today. The Russell 2000 small-cap index outperformed, up 1%. Volume was lower on the NYSE and Nasdaq vs. the same time Wednesday.

Among exchange traded funds, Innovator IBD 50 (FFTY) gained 1.9% to an all-time high, while the Nasdaq 100-tracking Invesco QQQ Trust (QQQ) added 0.2%.

Early Thursday, the Labor Department reported jobless claims fell 14,000 to 340,000 in the week ended Aug. 28. That was the lowest level since the pandemic took hold in the U.S. in March 2020. Economists expected a smaller drop to 350,000.

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 continued to roll out and cases decreased.

U.S. Stock Market Today Overview

Index Symbol price Gain/Loss % Change
Dow Jones (0DJIA) 35469.78 +157.25 +0.45
S&P 500 (0S&P5) 4541.23 +17.14 +0.38
Nasdaq (0NDQC ) 15362.19 +52.81 +0.34
Russell 2000 (IWM) 229.71 +2.27 +1.00
IBD 50 (FFTY) 50.16 +0.94 +1.91
Last Update: 11:58 AM ET 9/2/2021

But cases are rapidly rising again and mask mandates are returning in some states as the delta variant spreads.

Cumulative Covid-19 cases worldwide are approaching 220 million, with more than 4.5 million deaths, according to Worldometer. In the U.S., cases have topped 40 million with over 660,000 deaths.

Growth Stocks To Watch

Signet Jewelers (SIG) soared nearly 7% to break out past an 83.10 buy point of a cup base in fast turnover. Shares remain in potential buy range up to 87.26. The Bermuda-based jewelry retailer hiked full-year guidance after crushing Wall Street’s earnings estimates for its fiscal Q2, which ended in July. Same-store sales vaulted 97.4%, well above Fact Set forecasts for a 79.2% gain.

Nutanix (NTNX) surged 11% in heavy trade, gapping up above a 39.09 buy point of a double-bottom base, according to MarketSmith chart analysis. Late Wednesday, the San Jose, Calif.-based enterprise software maker’s fiscal Q4 results and outlook topped views.

Quanta Services (PWR) gapped up and soared 10% in heavy volume to hit a new high. The Houston-based engineering firm announced it would pay $2.7 billion to acquire renewable energy infrastructure provider Blattner Holdings. Quanta stock is now extended from a 99.62 buy point of a cup with handle cleared last week.

Okta (OKTA) rose nearly 3% in huge volume as it shapes the right side of a seven-month consolidation. It’s about 8% away from the 294.10 buy point. After the close Wednesday, the cybersecurity firm reported Q2 earnings and sales that topped Wall Street targets amid its Auth0 acquisition in May. Okta’s Q3 revenue outlook also came in higher than expected.

Medical software maker Veeva Systems (VEEV) also beat Q2 forecasts late Wednesday and guided full-year earnings and sales guidance above views. But shares sank nearly 7% in heavy trade, gapping well below its 50-day moving average. VEEV stock also triggered the 7%-8% loss-cutting sell rule from a 325.64 cup base buy point.

Walgreens (W(BA)) and Chevron (CVX), up more than 2.5% apiece, led the upside in the Dow Jones today. Boeing ((BA)) and Caterpillar (CAT) each advanced roughly 2%.

Walgreens is back above its 50-day and 200-day lines and is about 9% away from a 57.15 consolidation buy point. Chevron, about 13% off its 52-week high, is still below both moving average lines. Boeing and Caterpillar are a respective 20% and 14% off their 52-week highs.

On the downside, Visa (V) lost 2.7% and American Express (AXP) gave up 1.3%.

Amerian Express is working on a flat base with a 179.77 buy point, according to MarketSmith chart analysis. But shares are below their key 50-day moving average line. Retaking the critical level would be bullish for the stock’s immediate prospects.

Follow Nancy Gondo on Twitter at @IBD_NGondo

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Dow Jones Leads As S&P 500, Nasdaq Hit New Highs; Growth Stocks Rally On Earnings