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Stock Market Higher Ahead Of Facebook, Other Big Earnings; This Oil Stock Tops Buy Point

The stock market rose modestly Monday morning, with small caps and the Nasdaq composite outperforming. The energy sector led and included one of the day’s breakouts.




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The S&P 500 and the Dow Jones Industrial Average climbed 0.1% in a first hour of trading that saw both indexes make unsteady moves.

The Nasdaq and the Russell 2000 added 0.3%. Volume increased on the NYSE and Nasdaq compared with the same time on Friday.

The stock market Monday tried to extend its October rally. The S&P 500 is up more than 5% in October, erasing September’s drop of nearly 5%. The Nasdaq is up 4.5% this month, and hasn’t quite made up last month’s losses.

IBD 50 Outperforms Stock Market

Growth stocks outperformed value last week, and the trend appeared to continue Monday.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 35720.41 +43.39 +0.12
S&P 500 (0S&P5) 4552.08 +7.18 +0.16
Nasdaq (0NDQC ) 15144.84 +54.64 +0.36
Russell 2000 (IWM) 229.15 +1.74 +0.77
IBD 50 (FFTY) 50.26 +0.87 +1.76
Last Update: 10:20 AM ET 10/25/2021

Innovator IBD 50 ETF (FFTY), a growth index, rose 0.5%. It climbed to the highest level since Sept. 27. Innovator IBD Breakout Opportunities ETF (BOUT) rose 0.6%.

Tesla (TSLA) led the IBD 50 with a gain of more than 5% to a new high. Shares are now extended from an alternate entry at 900.50, according to MarketSmith pattern recognition.

Hertz Global Holdings said it is buying 100,000 Tesla vehicles by the end of next year for its car rental fleet. Hertz, which emerged out of bankruptcy with new ownership, also plans to install 3,000 electric-vehicle chargers in its network in the U.S. and Europe.

Nvidia (NVDA) is trying to break out above a 230.53 buy point. Volume is heavy, but the stock hasn’t been able to make a good push above the entry. Gartner (IT) is another stock to watch on the IBD 50 as it bounces off support at the 50-day moving average.

Big Week Of Earnings For Stock Market

This is the biggest week of third-quarter earnings reports, and the headliner today is Facebook (FB). The company reports after the close, with expectations for earnings of $3.19 a share and sales of $29.57 billion, according to FactSet.

On Friday, Facebook shares gapped down nearly to the 200-day moving average as Snap’s poor outlook and quarterly sales sparked a sell-off in social media stocks. Twitter (TWTR), another big social media company, reports earnings Tuesday. The stock is now below its 200-day line.

Microsoft (MSFT) announces results Tuesday after the close. The FactSet consensus estimate for Microsoft’s fiscal Q1 EPS is $2.08, up 14%. Sales are estimated to climb 18% to $43.93 billion.

Microsoft — the No. 1 company for environmental, social and governance principles in IBD’s special report — is above the 305.94 buy point of a flat base.

Alphabet (GOOGL), the parent of Google and YouTube, also will announce after Tuesday’s close. The consensus earnings estimate is $23.75 per share. Revenue is estimated at $63.46 billion. Apple (AAPL) and Amazon.com (AMZN) report Thursday after the close.

PayPal Denies Interest In Pinterest, Denbury Breaks Out

PayPal (PYPL), an IBD Leaderboard stock, surged more than 4% in huge volume. In a one-sentence news release, PayPal said it is not pursuing an acquisition of Pinterest (PINS). Last week, reports said PayPal discussed acquiring the company for around $70 a share. Pinterest shares, volatile since last week’s rumors came out, sold off more than 13%.

The energy sector was the early leader, with Energy Select Sector SPDR (XLE) up 1%. Oil company and XLE component Denbury (DEN) broke out of a sauce base and is in buy range from the 81.47 buy point. Volume was heavy.

Upwork (UPWK) poked above the 60.68 buy point of a cup with handle, but dipped back into the base. The freelance-work platform provider reports earnings Wednesday after the close.

Juan Carlos Arancibia is the Markets Editor of IBD and oversees our market coverage. Follow him at @IBD_jarancibia

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