The Dow Jones Industrial Average gained as President Biden pushed a slimmed down social spending package. Apple (AAPL) and Amazon (AMZN) popped ahead of results, while Merck (MRK) was the top blue chip following earnings. Donald Trump SPAC Digital World Acquisition (DWAC) spiked again as it continued to rebound.
XA number of stocks also managed to make bullish moves amid the broad positive action. Freight stock ArcBest (ARCB), MaxLinear (MXL), Service Corp. International (SCI) and Triton International (TRTN) broke out past buy points.
Biden Pushes Spending Package
President Joe Biden ramped up the pressure on warring Democrats as he touted a slimmed down $1.85 trillion social spending package. It is a big reduction on the $3.5 trillion package his party had originally floated.
"No one got everything they wanted, including me, but that's what compromise is," Biden said in televised address.
The package is in addition to a bipartisan $1 trillion infrastructure bill. House Speaker Nancy Pelosi is set to push forward with a vote Thursday on the infrastructure bill, despite support from party progressives being uncertain.
While measures such as free community college have been dumped from the social spending package, a host of other items remain intact.
These include universal preschool for all 3- and 4-year olds, subsidized child care and a one-year extension of the expanded Child Tax Credit.
It will also expand tax credits for utility and residential clean energy. In fact, clean energy and climate investments make up the largest individual area of the spending, coming in at $555 billion.
Nasdaq, Growth Stocks Gain
The Nasdaq was the leading major index Thursday, popping 1.2%. Align Technologies (ALGN) starred here, rising about 5%.
The S&P 500 also made a solid gain of about 0.9%. Water heater maker A.O. Smith (AOS) led the way with a gain of more than 11%, with Teradyne (TER) not far behind.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 35646.91 | +156.22 | +0.44 |
| S&P 500 | (0S&P5) | 4590.26 | +38.58 | +0.85 |
| Nasdaq | (0NDQC ) | 15424.29 | +188.45 | +1.24 |
| Russell 2000 | (IWM) | 227.54 | +3.89 | +1.74 |
| IBD 50 | (FFTY) | 49.70 | +1.10 | +2.26 |
Last Update: 2:50 PM ET 10/28/2021 |
||||
The S&P sectors were all green, with consumer discretionary and industrials leading. Energy and consumer staples were making the slimmest gains.
Small caps were also flourishing amid the bullish action, with the Russell 2000 jumping 1.7%.
But it was growth stocks that gave bears the bloodiest nose, with the Innovator IBD 50 ETF (FFTY) rising more than 2%.
Dow Jones Up With Apple Earnings Due
The Dow Jones Industrial Average lagged the other major indexes but still managed to rise about 0.4%.
Apple was one of the top components as it gets set to report earnings after the close, rising about 2.5%.
Shares are trading above the 50-day line and trying to build the right side of a cup base with a 157.36 buy point. Analysts expect the iPhone maker to earn $1.24 a share on revenue of $85 billion.
However Merck was leading the Dow Jones today after beating earnings views, rising nearly 6%. Shares are now extended from a flat base entry of 79.33. It is also forming a much longer, deeper consolidation.
Merck reported adjusted Q3 earnings per share of $1.75 on sales of $13.15 billion, outpacing FactSet forecasts for $1.55 EPS on $12.32 billion. Merck also guided higher for the full year on profit, which was a key reason the stock rose.
Amazon Earnings Due
E-commerce giant Amazon (AMZN) is another noteworthy company getting set to report after the close.
Analysts are expecting the firm, which is also a cloud computing behemoth, to post EPS of $8.90 on revenue of $111.5 billion.
Amazon stock was up about 4%. This allowed it to clamber back above the key 50-day moving average.
The stock has been mired in a consolidation pattern for the past 767 days, according to MarketSmith analysis. It remains far short of its potential entry point of 3,773.18.
Donald Trump SPAC Rally Continues
A listed special purpose acquisition company linked to former President Trump continued to fight back as it rallied for a second straight session.
Digital World Acquisition was up about 15% Thursday.
The stock fell earlier this week, even after Trump outlined his plans for mooted social media site Truth Social.
The former president boasted he will offer a "Big Tent" platform as he locks horns with the likes of Facebook (FB) and Twitter (TWTR).
"Unlike with the Big Tech platforms, there will be no shadow-banning, throttling, demonetizing, or messing with algorithms for political manipulation," Trump said. "We will not be treating users like lab rats for social experiments, or labeling alternative views as 'disinformation.' "
Digital World Acquisition skyrocketed last week on the news it will serve as a vehicle to take the Trump Media & Technology Group public via a merger. But it remains well off its all-time high of 175, which it reached Friday.
The firm will offer a subscription-based video-on-demand service to be called TMTG+ in addition to Truth Social.
The SPAC stock is still up bigly overall, as it traded at around the 10 level for much of October.
These Stocks Pass Buy Points
ArcBest is in a buy zone after passing a cup with handle buy point of 91.43. The stock, up around 6%, has been boosted by gains among its industry group peers like Saia (SAIA).
The stock is among the top 3% of stocks in terms of price performance over the past 12 months. However, it is set to report its own earnings Nov. 2, which adds risk. The stock was featured on Thursday's edition of IBD Live.
MaxLinear surged clear of a consolidation pattern buy point of 55.10 after reporting strong earnings growth. It is already extended, and its relative strength line has hit a new high.
MXL stock holds a near-perfect IBD Composite Rating of 97. Earnings are lagging stock market performance, but are improving. MaxLinear is a provider of RF, analog, digital and mixed-signal integrated circuits.
Funeral stock Service Corp. came alive Thursday, bursting into a buy zone as its RS line spiked to a new high. The stock is currently actionable as it sits above a flat base entry of 65.83.
Shipping container giant Triton International is also sitting in a buy zone after passing a long cup-base buy point of 61.98.
Stock market performance is very good, but earnings are its strongest suit. Current supply chain woes could drive the stock higher still.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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