The Dow Jones Industrial Average rallied 200 points Wednesday, as inflation stayed high in July. Coinbase, Unity Software and Upstart surged on earnings, while Tesla stock looked to rebound from Tuesday’s losses.
X
Among Dow Jones leaders, Apple (AAPL) rallied 0.4% Wednesday, while Microsoft (MSFT) moved up 0.4% in today’s stock market. Home Depot (HD) is trying to regain a new buy point.
Tesla‘s (TSLA) attempt to rebound from Tuesday’s 0.5% loss stumbled, as it reversed from early gains to fall 0.3% Wednesday morning. The EV giant continues to hold above a new buy point.
Coinbase (COIN), Unity Software (U) and Upstart (UPST) reported earnings ahead of Wednesday’s market open.
Among the top stocks to buy and watch, Mercado Libre (MELI), Snap (SNAP) and Square (SQ) are in or near new buy zones.
Mercado Libre, Microsoft and Tesla are IBD Leaderboard stocks. Square is an IBD SwingTrader stock. Snap was featured in this week’s Stocks Near A Buy Zone column.
Dow Jones Today
The Dow Jones Industrial Average rallied 0.5% Wednesday, while the S&P 500 traded up less than 0.1%. The tech-heavy Nasdaq composite reversed 0.4% lower in midday trade.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 35460.84 | +196.17 | +0.56 |
| S&P 500 | (0S&P5) | 4444.24 | +7.49 | +0.17 |
| Nasdaq | (0NDQC ) | 14747.25 | -40.84 | -0.28 |
| Russell 2000 | (IWM) | 221.51 | -1.09 | -0.49 |
| IBD 50 | (FFTY) | 46.12 | -0.01 | -0.02 |
Last Update: 11:02 AM ET 8/11/2021 |
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The Consumer Price Index rose 5.4% in July from a year ago, less than expected, with a month-over-month increase of 0.5%, as the economic recovery gained steam. The U.S. Labor Department’s CPI measures what consumers pay for a select basket of goods and services, including groceries, clothes, restaurant meals, recreation and vehicles.
Among exchange traded funds, the Innovator IBD 50 (FFTY) traded up 0.3% Wednesday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) was effectively flat. Meanwhile, the SPDR S&P 500 ETF (SPY) rose 0.2%.
Stock Market Rally
The Dow Jones industrials and the S&P 500 are at all-time highs, while the Nasdaq looked to rebound from Tuesday’s losses.
Tuesday’s Big Picture commented on the stock market rotation, “Commodity-focused companies basked in the winners’ spotlight. Why? One reason: The Senate scored a deal to further boost the economy by passing a $1 trillion deal to improve the nation’s infrastructure. Looking at IBD’s analysis of 197 industry groups on MarketSmith, steel producers boasted brawny gains, up 7% on a price-weighted basis.”
For more stock market commentary, check out IBD’s The Big Picture.
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Dow Jones Stocks To Buy And Watch: Home Depot
Dow Jones leader Home Depot is trying to break out past a cup with handle’s 333.55 buy point, according to IBD MarketSmith chart analysis. The 5% buy area goes up to 350.23.
Shares gained 1.8% Wednesday morning.
Stocks To Buy And Watch: Mercado Libre, Snap, Square
IBD Leaderboard stock Mercado Libre is trading above a 1,755.05 buy point despite Wednesday’s 0.7% loss. Per Leaderboard analysis, the stock’s first 5 minutes of trading notched a high of 1,755.05, setting an alternate entry for aggressive investors. A trend line within the base may also offer another early entry point.
The stock is also building the right side of a cup base, according to IBD MarketSmith chart analysis. Another possible entry looms at 2020.10. And be on the lookout for a potential handle to offer a more risk-optimal buy point.
Snap is trading in the 5% buy zone above a 73.69 buy point in a consolidation. The 5% buy area tops out at 77.37. Shares gained 1.2% Wednesday morning.
On July 23, Snap surged almost 24% following a second-quarter earnings report that toppled estimates with revenue more than doubling, and an outlook that also beat views.
IBD SwingTrader stock Square is back in buy range past a 267.87 buy point in a cup-with-handle base amid Wednesday’s 2% gain. The 5% buy zone goes up to 281.26.
According to the IBD Stock Checkup, SQ stock shows a 96 out of a perfect 99 IBD Composite Rating. The IBD Composite Rating identifies stocks with a blend of strong fundamental and technical characteristics.
Stock Market Earnings: Coinbase, Unity, Upstart
Coinbase forecast lower trading volume and active users for the third quarter, following a drop in crypto prices and trading action, even as second-quarter results beat expectations. COIN stock climbed 6% in morning trade, but remains about 35% off its all-time high.
Unity Software surged 10% after reporting strong Q2 results late Tuesday. The company lost 2 cents per share on revenue of $273.6 million, much better than estimates. Shares are breaking out past a cup with handle’s 111.84 buy point, but there is plenty of overhead resistance.
Upstart soared 25% after strong Q2 results and better-than-expected Q3 sales guidance. Shares are moving up the right side of a cup base that shows a 191.99 buy point. Look out for a handle to form, which would lower the risk-optimal buy point.
Tesla Stock
Tesla stock lost 0.2% Wednesday, on pace to add to Tuesday’s 0.5% loss. Shares are still above a 700.10 aggressive buy point deep inside a correction. Meanwhile, a deep, large base continues to take shape.
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 moved up 0.4% Wednesday, looking to snap a three-day losing streak. The stock hit an all-time high on July 15 at 150. Apple stock remains out of the 5% buy zone from a 137.17 entry in a cup base. On a weekly chart, IBD MarketSmith chart analysis also places a buy point at 145.19 in a consolidation, which would put Apple in a buy range through 152.45.
Software giant Microsoft rose 0.4% early Wednesday, but remains just off Monday’s record highs. Microsoft continues to trade solidly above a cup base’s 263.29 buy point. The stock is extended above the 5% buy zone, which 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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