The Dow Jones Industrial Average edged higher as the stock market posted slim gains. Apple (AAPL) and Microsoft (MSFT) were among the top blue chips, while the Lucid Motors merger vote was due. Virgin Galactic (SPCE) and AMC Entertainment (AMC) sank, again.
XA few stocks were also trying to stage breakouts, despite the mild action. Software firm PTC (PTC) and Monolithic Power Systems (MPWR) both passed buy points.
Stocks lost momentum after the Labor Department reported a surprise increase in initial jobless claims. New filings for unemployment totaled 419,000 last week, sharply above the 350,000 consensus estimate.
But Oanda senior market analyst Edward Moya said one bad jobless claims report is not enough to suggest the downward trend is over.
"An unexpected increase in jobless claims did not unnerve investors as seasonal adjustment factors may have played into the big miss," he said. "Many are attributing the soft reading to adjustments in the auto industry and as some states have returned to stricter (Covid) restrictions. "
Nasdaq Up, Small Caps Squished
The Nasdaq fared best out of the major indexes. It closed with a slim gain of 0.4%. Rail stock CSX (CSX) fared best here with a gain of 3.4%. It climbed above the 50-day line as it forms a base.
The S&P 500 was also up, gaining 0.2%. Domino's Pizza (DPZ) was the big winner here, closing up 14.6% on its latest earnings report.
U.S. Stock Market Today Overview |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 34822.75 | +24.75 | +0.07 |
| S&P 500 | (0S&P5) | 4367.50 | +8.81 | +0.20 |
| Nasdaq | (0NDQC ) | 14684.60 | +52.65 | +0.36 |
| Russell 2000 | (IWM) | 218.48 | -3.58 | -1.61 |
| IBD 50 | (FFTY) | 44.52 | +0.32 | +0.72 |
Last Update: 4:12 PM ET 7/22/2021 |
||||
The S&P sectors were mixed, with technology and health leading. Energy and financials were faring worst.
Small caps saw recent progress come to a crashing halt, with the Russell 2000 closing down 1.6%. However growth stocks had better luck, with the Innovator IBD 50 ETF (FFTY) finishing with a gain of around 0.7%.
Dow Jones Gains As Apple Stock Pops
The Dow Jones Industrial Average posted the smallest gain of the major indexes. It rose around 0.1%.
Apple stock was one of the top components. It pulled away from a buy zone as it posted a gain of around 1%.
Apple stock is currently extended from a cup base buy point of 137.17, MarketSmith analysis shows. It is continuing to rise further above its 50-day moving average.
Leaderboard stock Microsoft was also one of the top gainers, rising about 1.6%. It remains extended past a 263.29 entry. However it was Salesforce.com (CRM) that led the index due to a gain of around 2.5%.
EV Stocks: Lucid Motors Merger Vote Delayed
Lucid Motors looks set to go public, though a key merger vote for the luxury electric-vehicle startup remains in the balance.
Shareholders were voting Thursday on whether to approve the merger of blank check company Churchill Capital IV (CCIV) and Newark, Calif.-based Lucid Motors.
The vote had been supposed to close today, but the deadline was extended to Friday because not enough shareholders had approved the proposal to finalize it.
Churchill IV has adjourned the meeting until 9 a.m. ET Friday. The firm said in a news release all but one of the proposals related to the business combination had been approved.
It is expected to become one of the biggest new EV stocks, with the deal valuing Lucid at around $24 billion.
Lucid Motors stock had been set to debut Friday. It will trade under the symbol LCID on the New York Stock Exchange. The startup should receive about $4.4 billion in cash from the transaction. Saudi Arabia's Public Investment Fund has plowed $1 billion into Lucid.
Churchill Capital IV was trading down ahead of the vote, slipping around 2%. It is trading around its 50-day line and well off prior highs.
Tesla (TSLA), the big beast of EV stocks due to its $631 billion market cap, fell about 1%.
After Hours: Two Earnings Breakouts; Investing Vs. Pokémon
Virgin Galactic Dips, AMC Stock Dives
Virgin Galactic stock stalled once again Thursday after Wednesday's up day. It gave up more than 7% after being turned away at the 50-day moving average.
It was forced lower Tuesday after Amazon.com (AMZN) founder Jeff Bezos made headlines by blasting into space in his Blue Origin company's first manned flight. His crew included the firm's first paying customer.
SPCE stock has been struggling to climb out of a downward spin after its stock price collapsed about 39% last week. Virgin Galactic sank after revealing in a regulatory filing that it plans to sell up to $500 million in stock. The sell-off came despite the fact it came just after the firm made its first fully crewed flight.
Meanwhile AMC stock, the current star of meme stocks, continued to fall. The stock knifed under the key 50-day moving average as it gave up almost 9%.
The stock has been sinking in recent weeks. AMC stock tumbled 24% last week, a fourth down week in a row. Despite its painful drawback, the stock still has a perfect Relative Strength Rating of 99.
GameStop (GME) also slipped, losing almost 4%. This caused it to lose more ground on its 50-day line. GME stock has now fallen more than 60% from its high of 483, which it reached in January.
These Growth Stocks Pass Buy
Software stock PTC is in a buy zone after breaking out of a cup-with-handle base. The ideal buy point here is 147.17.
The relative strength line looks to be bending upward after a period of gentle ascent, which is a positive.
However earnings are due in six days. Investors should remember IBD recommends using options as a strategy to limit risk. It is a way to capitalize on the upside potential of a stock's move around earnings, while reducing the downside risk.
Power circuit chip play Monolithic Power Systems has managed to pass a buy point of 406.85, however it has closed back below it. The stock has a strong Composite Rating of 91, with earnings performance its strongest feature.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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