The Dow Jones Industrial Average briefly dropped 150 points before reversing higher Thursday, as Fed chief Jerome Powell testified in front of the U.S. Senate. Tesla looked to add to two days of losses, while AMC stock surged higher in midday trade.
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Among the Dow Jones leaders, Apple (AAPL) moved down 0.7% Thursday, while Microsoft (MSFT) also lost 0.7% in today’s stock market. McDonald’s (MCD) broke out past a new buy point Wednesday, but is back below the entry.
Tesla (TSLA) was on track to add to two straight days of losses, falling 0.7% Thursday midday.
Dow Jones stock UnitedHealth (UNH) and investment bank Morgan Stanley (MS) reported earnings ahead of the market open.
Among the top stocks to buy and watch, PayPal (PYPL), Roku (ROKU) and Shopify (SHOP) are in or near new buy zones.
Microsoft, PayPal and Shopify are IBD Leaderboard stocks. Roku is an IBD SwingTrader stock. PayPal was featured in this week’s Stocks Near A Buy Zone column.
Dow Jones Today: Powell Comments
The Dow Jones Industrial Average inched higher Thursday, while S&P 500 lost 0.3%. The tech-heavy Nasdaq declined 0.75% in midday trade.
U.S. Stock Market Today Overview | ||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 34900.49 | -32.74 | -0.09 |
| S&P 500 | (0S&P5) | 4358.22 | -16.08 | -0.37 |
| Nasdaq | (0NDQC ) | 14565.22 | -79.73 | -0.54 |
| Russell 2000 | (IWM) | 217.56 | -1.31 | -0.60 |
| IBD 50 | (FFTY) | 42.87 | +0.06 | +0.14 |
Last Update: 10:30 AM ET 7/15/2021 | ||||
Federal Reserve Chairman Jerome Powell testified in front of the Senate Banking Committee Thursday, defending the Federal Reserve’s easy money policy. “This is a shock going through the system associated with the reopening of the economy and it’s driven inflation well above 2%, and of course we’re not comfortable with that,” Powell said.
On Wednesday, Powell reassured investors that the Federal Reserve’s easy monetary policies will continue.
Stock Market Rally
The S&P 500 was just shy of record highs Thursday morning, while the Nasdaq looked to snap a two-day slide. The Dow Jones industrials are trading just below the all-time high set in early May.
Wednesday’s Big Picture column noted, “While the IBD outlook for stocks remains in the best-possible shape — namely a confirmed uptrend — some nasty reversals across growth stocks should give readers enough reason to tread carefully with new buys for now.”
For more stock market commentary, check out IBD’s The Big Picture.
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AMC Stock Reverses
AMC Entertainment (AMC) reversed from sharp losses to rally over 6% Thursday midday, on pace to snap a four-day losing streak. Shares breached their 50-day support level during Wednesday’s 15% dive.
AMC stock is more than 50% off its all-time high, which was set back on June 2 at 72.62.
Dow Jones Stocks To Buy And Watch: McDonald’s
Dow Jones restaurant giant McDonald’s is trading below a 238.28 buy point in a flat base, according to IBD MarketSmith chart analysis, after Wednesday’s breakout attempt. Shares were down 0.7% Thursday.
McDonald’s was featured in Friday’s IBD Industry Themes column, along with Chipotle Mexican Grill (CMG). Chipotle stock is in a new buy range.
Dow Jones Earnings: UnitedHealth
Dow Jones health insurer UnitedHealth beat the Street’s earnings and sales estimates early Thursday. Shares turned slightly higher in midday trade.
UNH stock is tracing a cup base with a 426.08 buy point.
Stocks To Buy And Watch: PayPal, Roku, Shopify
IBD Leaderboard stock PayPal is in the 5% buy zone past a cup with handle’s 296.11 buy point following last week’s breakout. The 5% buy area goes up to 310.92. Shares fell 1.4% Thursday and are squarely in buy range.
On June 17, the top payments processor broke out above a 277.96 entry in a cup base and is comfortably above that level. Leaderboard noted the stock’s rising relative strength line is a positive attribute even though it remains off its 2021 high.
According to the IBD Stock Checkup, PayPal stock shows a solid 96 out of a perfect 99 IBD Composite Rating. The IBD Composite Rating identifies stocks with a blend of strong fundamental and technical characteristics.
Roku is trading about 7% away from a cup-with-handle’s 463.09 buy point. Shares lost 1% Thursday. Roku is an IBD SwingTrader stock.
Shopify is still below a 1,552.33 buy point in a cup with handle, according to IBD MarketSmith chart analysis. Shares dropped 1.2% Thursday following Wednesday’s 3.5% sell-off. Shopify is about 6% away from the buy point after last week’s brief breakout attempt.
Stock Market Earnings: Morgan Stanley
Investment bank Morgan Stanley topped second-quarter forecasts early Thursday. Despite the earnings beat, shares rallied more than 1% in midday trade.
Morgan Stanley stock is approaching a flat base’s 94.37 buy point.
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Tesla Stock
Tesla stock rallied 0.3% Thursday morning, on pace to rebound from two straight days of losses. The electric-vehicle giant could be set for another test of support at its key 50- and 200-day moving averages. Another strong show of support at these levels would be bullish for the stock’s prospects.
On Jan. 25, Tesla stock hit a record high at 900.40, after climbing as much as 93% from a 466 buy point in a cup with handle.
Dow Jones Leaders: Apple, Microsoft
Among the top Dow Jones stocks, Apple lost 0.7% Thursday, giving back a bit of Wednesday’s 2.4% advance. The stock hit another all-time high in morning trade.
Apple stock is extended past the 5% buy zone from a 137.17 entry in a cup base, according to IBD MarketSmith chart analysis.
Microsoft continues to trade solidly above a cup base’s 263.29 buy point. Shares lost 0.7% Thursday and are extended. The 5% buy zone goes up to 276.45.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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