The stock market doesn’t seem to be done with its seven-month advance, as stocks rose broadly. The ETF that tracks the IBD 50 made a record high for the first time in six and a half months.
The Nasdaq composite and S&P 500 added 0.3% as both made new highs in Thursday’s trading. The Dow Jones Industrial Average climbed 0.4%. Small caps led with a 0.9% gain in the Russell 2000.
The index is a proxy for growth stocks and it outperformed the major indexes even on an off day for growth stocks. The iShares Russell 1000 Growth ETF (IWF) was nearly flat while iShares Russell 1000 Value (IWD) rose 0.6%. Again, it was IPO stocks that led the IBD 50.
IPOs Lead IBD 50 Gains
U.S. Stock Market Today Overview
Last Update: 1:14 PM ET 9/2/2021
Asana (ASAN) surged more than 13% to a new high. The project management software company late Wednesday posted a loss for the July quarter, but sales acceleration continued. Several analysts raised their price targets on Asana. Doximity (DOCS), Upstart Holdings (UPST) and DLocal (DLO) surged more than 4%.
Advancing stocks numbered about 11-to-5 over decliners on the Nasdaq and NYSE. Volume was lower on the NYSE and Nasdaq compared with the same time on Wednesday.
Energy Sector Tops Stock Market
Energy Select Sector SPDR ETF (XLE) jumped more than 3% after U.S. crude prices topped the $70 mark for the first time since Aug. 6. In afternoon trading, oil was up 2.5% to $70.28 a barrel.
Major oil producers on Wednesday decided to stick with their plan to gradually boost output. But market watchers said investors are trading on Wednesday’s U.S. supply data. The Energy Information Administration reported that U.S. oil stockpiles fell by 7.2 million barrels for the week ended Aug. 27, far more than analysts polled by S&P Global Platts had expected, Dow Jones reported.
Six of the 10 best-performing industry groups today were from the energy sector, including drilling, oilfield services and exploration & production groups. All were up more than 2%.
One problem with energy stocks is that the sector has lacked good breakouts. But that could be changing.
Better Action For Oil Stocks
Denbury (DEN) broke out of a double-bottom base with a 73.30 buy point. Magnolia Oil & Gas (MGY) rose above the 16.48 buy point of a cup base. Continental Resources (CLR) is nearing the 40.51 buy point of a cup base. Many other energy stocks are moving back above their 50-day moving averages.
In the finance sector, XP (XP) broke out of a base, according to MarketSmith pattern recognition. The Brazil-based brokerage is on course to close above the 50.35 buy point of a handle area. Volume was more than double the stock’s average.
Juan Carlos Arancibia is the Markets Editor of IBD and oversees our market coverage. Follow him at @IBD_jarancibia
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