The Dow climbed, the Nasdaq lagged at the starting bell Friday, as markets figured in a raft of earnings news and positive July payrolls data. Earnings sent Textainer Group, Monster, Switch and IBD 50 stock Carvana sharply higher. China stocks rebounded, and JPMorgan rallied to the top of the Dow Jones today, as bond yields climbed after the payrolls report.
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The Dow industrials rattled off a quick 175-point gain, rising 0.5% to firm up the index’s stance above 35,000. The S&P 500 tacked on a 0.2% gain. The Nasdaq Composite backed off 0.2%, Illumina (ILMN) and Dexcom (DXCM) dropped to the bottom of the Nasdaq 100.
At the top of the Nasdaq 100, Monster (MNST) jumped 4% after turning in a solid second-quarter sales and earnings win. Shares fell in eight of nine sessions ahead of earnings, leaving the stock 8% below a 99.34 buy point.
Chip stocks shook off early weakaness, with Advanced Micro Devices (AMD) rallying 1.8% on the Nasdaq 100.
On the IBD 50 list, online auto retailer Carvana (CVNA) jetted 6% higher in early action. The Tempe, Ariz.-based outfit reported a surprise second-quarter profit a big sales jump late Thursday. The stock opened in extended territory, above a 323.49 buy point.
Container freight lessor Textainer Group Holdings (TGH) scrambled more than 3% higher on earnings news. The stock closed Thursday 11% below a cup-base buy point at 36.29.
Century Casinos (CNTY) and DraftKings (DKNG) were up sharply after early Friday earnings reports. Data center operator Switch (SWCH) soared 20% on raised guidance after a mixed second-quarter report late Thursday. Groupon (GRPN) also spiked 15% following a strong second-quarter report.
Dow Jones Today: Walmart Up, Apple Down
JPMorgan (JPM) set up a strong early pace, surging 2% on the Dow Jones today. The move sent shares back above support at their 50-day moving average, and up the right side of a two-month consolidation.
Walmart (WMT) gained on the Dow Jones today, with an early gain of 3% following a 1.7% rally on Thursday. Thursday’s move also scored a breakout past a 144.68 buy point in a nine-week flat base. Walmart stock ended Thursday in a buy range that runs to 151.91. Walmart’s Relative Strength Rating is a weak 38, and its Composite Rating from IBD lags at 63. But the stock’s seven-week advance indicates rising strength in consumer staples stocks.
Apple (AAPL) slipped 0.2% to the bottom of the Dow Jones today. CNBC reported that Chinese smartphone maker Xiaomi topped Apple and Samsung in June sales, according to a report from researcher Counterpoint. Xiaomi reportedly accounted for 17.1% of handsets sold during the month, vs. 15.7% for Samsung and Apple’s 14.3%.
Apple stock is extended after clearing a buy point in early July. It could also be seen as in a buy range, holding steady support at its 21-day moving average, above a 145.19 entry in what IBD MarketSmith analysis charts as a 23-week consolidation.
July Payrolls Surge, Unemployment Rate Drops
The Labor Department reported U.S. nonfarm payrolls expanded by 943,000 workers in July. The jump, up from a revised 938,000 workers hired in June, topped expectations for 900,000 new jobs. It also sharply decreased the unemployment rate to 5.4%, vs. 5.9% in June, undercutting projections for a decline to 5.7%.
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The energy industry rig count from Baker Hughes is due for a 1 p.m. ET release. And the Federal Reserve delivers its June reading on consumer credit at 3 p.m. ET.
Vital Signs: Oil, Bond Yields, Bitcoin
Crude oil prices flattened, with West Texas Intermediate futures hovering between $69 and $70 a barrel.
The 10-year bond yield climbed to 1.28%, a big jump from Thursday’s settle just above 1.21%, and angling toward a third straight advance. Yields are on positive ground for the week, set to snap a string of 10 losses in 11 recent weeks.
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Bitcoin jumped 8% higher, trading in a range between $37,716 and $41,377 over the past 24 hours. The cryptocurrency hit a two-month high above $42,300 on July 31.
China Volatility Continues
China’s markets ended the week on a quiet note, with Hong Kong’s Hang Seng Index down 0.1% and the Shanghai Composite posting a 0.2% decline. For the week, the Hang Seng added 0.8%, regaining composure after the prior week’s 5% dive. The Shanghai benchmark regained 1.8%, up from a 4.3% loss in the previous week.
Among China gauges in the U.S. early Friday, the iShares MSCI China ETF (MCHI) dropped 0.2%, and the Xtrackers Harvest CSI 300 China A-Shares ETF (ASHR) faded 0.4%. Technology tracker KraneShares CSI China Internet ETF (KWEB) rose 1.3% in early trade.
In Japan, Tokyo’s Nikkei 225 added 0.3% on Friday. That gave it a 2% gain for the week, but the index remains in a six-month downtrend.
Europe’s markets headed higher in afternoon trade. The CAC-40 in Paris showed a 0.6% advance. Frankfurt’s DAX gained 0.3%. London’s FTSE 100 dipped edged up 0.1%. The SPDR Portfolio Europe ETF (SPEU) slipped 0.4%, after posting a 0.6% gain Thursday. The ETF is up 1% for the week, and just below a 44.06 entry in an eight-week flat base.
Nasdaq, S&P 500, Dow Jones Today
Heading toward Friday’s starting bell in the first week of August, the Dow Jones today has a 0.4% gain for the week through Thursday. The S&P 500 has climbed 0.8%. The Nasdaq Composite is up 1.5%. Year to date, the Dow is up 14.6%. The Nasdaq has climbed 15.6%. The S&P 500 still holds the lead so far in 2021, up 17.9%.
For more detailed analysis of the current stock market and its status, study the Big Picture.
S&P 500: Early August Winners
The week’s largest gains among S&P 500 stocks included a 24.9% breakout rally from Cross Country Healthcare (CCRN). The surge followed a firm second-quarter beat, reported late Wednesday. It left shares extended just beyond a buy range in a breakout above a cup base buy point at 19. Cross Country ranks a healthy 98 Composite Rating from IBD, and Benchmark upgraded the stock to a buy, with a 22 price target, on Thursday.
Under Armour (UA) spiked more than 21% after a stronger-than-expected report early Wednesday. That moved the stock to within 3% of a 21.92 buy point in a 13-week cup base. Under Armour’s Composite Rating is a 91.
Broadcast infrastructure gear maker Harmonic (HLIT) bolted almost 15% higher. The stock holds an 87 Composite Rating from IBD.
U.K.-based apparel manufacturer Capri Holdings (CPRI) gained more than 4% in a third-straight weekly advance. The stock ended Thursday less than 2% below a 59.70 entry in what IBD MarketSmith analysis identifies as a 12-week consolidation. Capri’s Composite Rating is 94.
Power Integrations (POWI) turned in a 2% advance, adding a third week to its rally. Shares finished Thursday low in a buy range, above a 99.15 buy point in a 29-week base. POWI stock rates a solid 97 Composite Rating from IBD.
Find Alan R. Elliott on Twitter @IBD_Aelliott
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